The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-22
WOULD END
STOCK CONTROL
Continued from First Page.

until such one-half together with the sloo,
amounts to $40 900, which ia the maximum
rent which the Equitable society can re-
ceve, and all excess above that goes 10 the
safe deposit company. Let It ne hnder'
stood that the society receives holnlnR
under this lease except SlOo year until
S20,09o pes annum above all expenses
while the society keeps up all addNlohs
and Improvements at It's own expense.
Thereafter and on Dec. 20, 1874. the
Equitable society leased to TINS saie os ,t,t
CON pany two additional rooms without
any additional rent
From 1885 10 1904 inclusive the society
received the total rental OF $1,000, WINS
from the l6ih day of February. 1901 to the
9th day of Nav, 1905, inclusive It paid out on
account of alterations. additions, repairs,
&c, for these premises occupied by THIS
safe deposit com pany the sum of $50 ,l3l 40,
and in addition thereto during the whole
term of the lease, the society incurred the
expense Of heat light, water, janitors, watch
men, elevators, and cleaning. The amount
expended by thesociety, on these leased prem
ises prior to Feb. 49, 1901. does not appear
The society has realized only. 1.sb per cent.
than the inveStmentJ. while the tenant had
it's premises practically rent free. and re.
ceived very large profits from the time Of
its organization until the stock Of the MIS-
souri Safe Deposit Company was sold 10 the
pocety in he year 1902
LEASES "oNH SIDED, UNFAIR ASD UNJUST.
The leases by the Equitable society to
these three safe deposit companies are very
much alike. They all contain proTis IONS
with reference % arbitration in case Of as
agreement between the parties a. 10 the
eypsdiiurcs OF the Lessee. Three arbtra-
, tors are TO be Chornl, one by the lessee, one
bv the lessor aud the third by the two 80
chosen and the decision of such aroitralors
shall be final and conclusive upon me par
ties. When il Il clearly understood that the
gentlemen who caused the society To make
these long leases at great loss to the society
are the same men who reap the profits from
the Lease, it l., manifest that II ever an
arbitration question should come mp al
matte of form, the society's interests would
NOT be looked after That IL all that need be
rad,
These leases are all so one sided, unfair
and unjust to the society that 1t Is practically
impossble to convey clear idea OF all their
provisions hv any extract which may be
made: for it il difficult to believe that tr'is-
tees of a sacred trust would make ouch con-
tracts against the welfare OF the society and
In their own interests
THOSE WHO PRor1TID.
But who, Supt Hendricks asks. were the
gentlemen who realized these profits? The
Missouri Safe Deposit Company was cap
italized at $500 900, consisting OF 2 900 shares
of siOO each, and the following is a list OF
the original subscribers to the stock
Henry G. Marauand. ..,..'..'.'.'... ?r
Henry q iaarsi'ck .......' ..'''''''''''
b X Ferguson. .....,....,.......- :
George " N'icn,....... ..,,.,,,..,............ .
Georg, n. Capcn .............'., ....,.....'.. .
William Ni'hoiN, .'''''''''''''. J;
william Alexander ......r............,..,.-. g
Louis Fitzgerald ,..''''''''' ''''
1000
OF these william Alexander was sec
rotary of the Equitable and Louis titz-
gerald director, speaking OF Mr.: fnz-
gerald and his 745 shares. the report says
This gentleman was the intimate friend
of the late Henry B. Hyde and for many
years was chairman OF the executive and
fnance committees Of the Equitable society.
Ne have sent for Mr.. Fitzgerald TO tell
Ms who the real owner of this stock was,
hut he has not appeared. 1t may be assumed
that most Of it was owned by Henry B.
HYDE himself, for while he favored his
intimate friends on the inside at the eS-
rense of the society, he kept the lions share
himself"
HYDE's PROFIT ON THIS STOCK
Mr. Hendricks says that President James
". Alexander and other officers who ap-
peared before him explained that in the
year 1902 the society was negotiating the
aale Of the ST. Louis building but that the
purchaser-to-be would not take it on &C
count of this long and onesided lease. It
was on this account deemed wise on the
part of the society to purchase all the stock
of the company. 1t was therefore agree"
to pay the stockholders $3.50 per share
The stock was paying 10 per cent. AN
of the stock was bought in at that figure
James H. Hyde was the owner of large
majority, for on June =, 1902, he sold to
the society 40 shares at $3.50 share and
received in cash 1852 500.
Mr. Alexander. the report saws, declares
that he signed these safe deposit company
leases under the direction of Henry B. Hyde.
Il believe that to he the fact, Mr.. Hen
bricks adds, -and it il the most charitable
construction which ran be placed upon his
acts"
THE GAME WITH THE TRUST COMPANIES.
supt. Hendricks then takes up the rela-
ton of the Equitable Life with it's subsidiary
trust companies. Many years ago, he says,
the custom or practise began OF making
advances pv the society to its agents. About
the year 1893 the total OF these advances
was large and appeared as an asset in the
annual report of the society, but was not
admitted az an asset bv the State Insurance
Department.
1T therefore occurred to Henry b. HYDE
to get financial institution which would
answer a double purpose, and the Com
u1ercial Trust Company of Philadelphia
was either organized or purchased. Since
that time. aiInuaNy', large sums Of agents
advances have been assigned to this trust
company. Credit has been given the
Equitable society in the trust company'a
books, az much cash deposited, and has
been admitted "a an asset by the Insurance
Department The other purpose which ii
panv in which many Equitable officers and
directors are interested az stockholders
and at the loss of the Equitable Society
On the twelfth dav of December, 1904, the
Equitable Society assigned to the Com
mercal Trust Company agents balances
to the amount of 81 ,273 ,2is.45 by an assign.
ment and agreement. This instrument
on its face. is an absolute assignment of al
claims which go to make up the total,
On the same date the report shows the
Equitable Life transferred to the Equi able
Trust Company another schedule of agents
balances amounting to 81 $50 1885, A. Ar
officer of the trust company stated unde
oath to Supt Hendricks that the assign
ment and agreement together with tn.
schedule was the only paper delivered b,
the society 10 the trust company; tina
none Of the notes or other evidences O
debt held by the society against the agent
were delivered with the assignment tina
the trust company simply took this instru
ment and entered it on its books a.
loan to the Equitable society.
HOW $4,000 IN INTEREST WAS LOST.
These trust companies run no risk
and they have no trouble or expense II
connection with the same. They simp
enter the total amounts in their books q
loans to the Equitable society on whic
they get per cent, and the Commercis
Trust Company pays the Equitable societ
cant nj its depOSitS and the EOuita abb