Arizona republican., 1905-04-23
The Troubles of the Equitable.

In presenting to James H. Hyde peremptory request for his resignation as vice president of the Equitable in surance company, the agents of that company have taken an extraordinary step. Such a unique situation was never before developed in the financial affairs of any institution. The agents are merely the employees of the com pany Mir. Hyde is the owner of the company-at least. he owns ninety per cent of the company's stock-so 1t Is a case of the empIoye demanding that the employer shall quit his job.
 The agents, gathered at New York from all sections of the country. were moved to take this remarkable action by the widespread publicity given to the struggle for control of the Equit- able which has been going on for sew eral weeks. and by the consequent diff fculty encountered in getting new bus mess from the public. At present. it is said, the people are not readily in suring their lives in the Equitable.
 It would have been quite as extraor- dinary if MT. Hyde had acceded to the demand of his agents. To withdraw from the position of vice-president he would be compelled to give up the sal ary of s10O,0 a year that goes with the job. Deprived of the salary. his in come from the company would be re- stricted to the ' per cent annual divi- dends on his stock-the law does not permit a larger dividend. As the cap ital stock of the Equitable is only s100, 900, MT. Hyde's dividends are less than S6,000 a year. His income from that source Is Jess than the sum he pays annually to the superintendent of his country estate, and after the exist ing shake-up is over 1t Is certain that the farm superintendent will be paid out of Mir. Hyde's pocket and not from the pay rolls of the Equitable. And aside from the loss of his hundred thousandd dollar salary, MT. Hyde has other reasons for refusing to resign at the request of his employees. To resign would be to confess that the charges made against him are true
 
 young Mir Hyde will be compelled by public opinion as we'll as the interests Of his company to withdraw from ac- tive connection with the institution. It seems to be concIusively established that he and F. H. Hartman and their associates have been exploiting the in surance company for their personal profit. It is charged that they have organized banks. trust companies and underwriting syndicates, caused these corporations to borrow money from the Equitable and to obtain a large share of the Equitable's millions of deposits, and have sold the securities of these corporations to the insurance company acting on one side as directors of the Equitable and on the other as owners of the subsidiary companies-and have taken immense rake-offs which prop erly belonged to the policy holders of the Equitable.
 MT. Hyde may take either of two courses. He may withdraw from the company and permit its "mutualiza- tion," thereby giving to the policy holders a nominal control, at least, or he may make good his threat to throw the company into the hands of a re- ceiver and cause its affairs to be wound up In the latter case, it is contended by his attorneys. he would, as the principal stockholder, gain per sonal ownership of most of the huge surplus of 80 millions which has been accumulated by the company. This con- tention is denied, however, by other lawyers. who say that the surplus would belong to the policy holders.
 Whatever the outcome. the policy holders-and there are doubtless many