The Caucasian. (Shreveport, La.) 1900-192?, 1905-04-06
THE EQUITABLE INSURANCE
SCANDAL

CNANDAA
Editorial New Orleans States April
New York, which is always prolific
source of corporate rascality and scan
dal-hence it is now enjoying the eS-
citement caused by the Developments
growing out of the war between the Of
ficials of the Equitable Insurance Society
1t has been spicy war during which
many shady transactions have come to
light and charges involving the use OF
the company's funds have been hurled
back and forth. 1t is quite evident that
high rolling and high finance have played
star parts in the rather strenuous drama.
Among other things it is charged that
Mr.. James H. Hyde, vice president of
the concern, caused to be paid out of the
treasurey of the quitable the expenses of
a grand fancy dress ball that he gave at
Sherry's, the elegant dinner which he
rendered in honor of the French an1bas-
sador, and that number of high sal
aried employees in his personal service
who render no service whatever to the
Equitable have been carried On its pay
rolls.
There are other and more serious
charges, however, to the effect that high
hnanciers who are members of the dierc-
torate have made use of the finances of
the company to purchase at high figures
the stocks of railroads and other cor
porations in which they were interested,
although the funds thus used were sup
posed to be the property of the policy
holders of the Equitable The predic-
ton is made that the investigation of
the affairs of the company which Gov
ernor Higgins has ordered will show
that it was due to Mr.. E. H. Harriman's
control of the funds of one or more of
the great insurance companies of New
York that he was able to build UP the
Union Pacific railroad combination, now
one of the financial wonders of the age,
by paying $1,000 share for the stock of
the Northern Pacific railroad. Mr.. Har-
riman is one of the directors of the
Equitable and it is quite probable that
the investigation will show how many
shares, bought at that price, are held
by it.
The Equitable does a business of more
than a billion dollars and has cash as
sets amounting to more than 500, ooo, 600
And it is probably true as the New York
Sun asserts that the great scandal which
is now commanding tie attention of the
whole country could only have been
brought to light by quarrel among the
trustees of the enormous fund over its
control and division of the spoils of
In this connection the
Sun says: ~ It -rz,
Mr.. Hartman, with his associates, is
determined to have the control Of the.
Equitable, the control of the four hun
dred million dollars of the policy hold
ers' money, money which is, or ought to
Be, the most sacred and inviolate trust
Known to honest and decent men. Theo-
men are called to administer
such trusts only because to high and
special ability they join unblemished !
equation for integrity and personal
lonor. To sane minds no other concept
# the business of life insurance is pos
ible. Mr.. Hartman desires the control |
# this vast sum because he needs it in |
lis business. He does not desire it in
he interest of the policy-holders, and,
indeed. does not pretend to- He desires
in his own interest, and he means to
ave It. Mr.. Hartman will prbably get
/. Sheep have never been known to
Use up and slay butcher
There is no reason to doubt that
noug facts have leaked out as the result
+ the war ernong the officials and trus-
res to show that the funds in the treas
ry OF the Equitable have been employed
. promote certain schemes of high
nance, and there is every reason to be-
eve that if the investigation which is to |
E made by the State Commissioner of
insurance is honestly and thoroughly
onducted there will be some startling
isclosures which will result in large
ock Of Wall street chickens coming
ONE to roost There is of course no
anger OF any one going to Jail for being
nfaithful to sacred trust and juggling
18th money that did not belong to them,
It there is much reason to believe that
le outcome Of the scandal will enable
le country to obtain great deal Of val
able and very instructive information
.garding the methods OF high finance in
ew York.
GID AVEn IN crna r>Ai