The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-03

with the exercise Of their responsible duty
of eleoting the officers of the society.
Not only has Mr.. Alexander concealed
from the directors the irregularities OF Mr;
Hyde Of which he was STgnnizanI ss ana OF
openly encouraged them. In 10 impo rtant a
matter as aiding In the proper conduct OF the
examination that the bylaws OF the 70 eiety
provided the fiscal or examining committee
the society at the close Of each fiscal year,
Mr. Alexander openly advised Mr.. HYDE
while he was entirely under his tutelage
that this might, and should. be ignored.
"Nov. IA, 1904, Mr. Alexander wrote to
Mr.. Hyde:
AZ don't kr-v just when Willie is to
return, but suggest with your con curren oe.
that he be char ged with the respor sibility
of steering the fiscal committee when It
meets. We have two new members on Il,
and it is Just as well that they should al! be
under reasonable observation. Let him
remember that the only duty Of this fiscal
committee is to prove our annual state
ment.
opinions about methods. When they come
to proving what we call our ledger bal
ances,' it has been the usage that the chair
man Of the committee (Mr WheelockO
should make the comparisons and the COM
| mllL3e 8uOpU phoh vi Osoo Wis
Of my memorandum and you can, II you
like, lay it aside for Willie on his arrival
unless you have some other views
From letters Of Mr.. Alexander to Mr.
Hyde which the committee has examined,
the committee lrds that he flattered and
encouraged Mr. Hyde in methods wholly
vicious and tending to autocracy in the
admin istration of the society's eEairs.
-The committee also finds that so far
as Mr.. Alexander's charge against Mr.;
| l. L., thot ho hn RI tovN1o xyaH
a strong personal ami ition and an NOR
dinate and unsafe love Of prominence.
| great responsiveness to flattery, a pliancy
In the hands of persons whose interests are
not necessarily parallel to those OF the
OF the ees soGe 'na'
-The committee finds that many OF the
charges OF Mr.. Alexander against MIR. Hyde
are true, or measurably true.
COMMITTEES SUMMARY OF HYDE's M1spEEDs
"The evidence submitted satisfies the
committee
"Flrst-That Mr.. Hyde has. habituaily
| involved the society in transa ctlons, especl-
| ally Of purchase Of securities, which we're
Of great magnitude. without the previously
obtained authority of the executive COM
mittee. ,.-......
Second That he carries large amounts
| r stocks belonging to the society IN his
own name without there appearing any
minute Of any act Of directors or committee
authorizing It.
"Third-fhat he has used the funds OF
the society to gay for certainly one social
entertainment given in his name and the
name of one other director Of the society.
-Fo 1th-That he has shared in the profits
made by ban king syndicates in effecting
sales Of securities to the society at time
when he was member OF the COMMITTEES
which made the purchase. he frequently
voting for the same.
-Fifth-That he has been guilty Of other
acts which were irregular and not IN com,
pliance with the society's law or with sound
business practises. :,
"The committee has fully considered
Mr.. Hyde's explanations of these charges.
In the main he seeks to exonerate himself
| by pleading the custom OF the society,"
the participation Of others, the return OF
money improperly acquired or used, and
the beneficial results to the society. AS
it is the function Of this committee to de-
management, Mr.. Hyde's arguments can.
not avail. The practises he has pursued
are wrong The fact that Others have
pursued them or aoquIesced, in them only
The report says that instead of teing a
check on each other the executive and
| finance committees are made up OF the
! same men. A number OF gentlemen meet
and do certain acts as the executive com.
mittee. They adjourn and Immediately
reconvene as the finance committee and
| approve the acts OF themselves while in
| session as the executive committee. For
| permitting this state OF affairs the board
F, Of directors is held responsible, and the
| report recommends that the two commit
| tees named be reorganized.
Speaking Of the work OF the executive
committee and the interesting question
Of salaries paid the report says:
EXTRA AGANT INCREASE IN SALARIES.
There are no res solutions whatever
bearing on thes alaries OF officers or Others
The closest approach Of this being a reso-
luton advising the directors to grant,
pensions to two retiring medical directors
In addition to the formal minutes Of
the committee there is a large amount
Of what are called Memoranda Minutes"
list of securities bought and sold, and it
is assumed that in each case the executive
committee approved Of such transaction
the executive committee appoints
subcommittee of two to adjust. salaries
There are no minutes covering the report
of such subcommittee; but il is verbally
stated that the subcommittee gave direct
instructions to the comptroller as to the
rates of salaries, to be paid. The sub-com-
mittee fixed salaries of higher executive
officers only-those of subordinates being
arranged by their chiefs
THE last subcommittee on salaries OF
which there is record on the minutes
| December, 1902 was composed OF two
| persons, one oil whom receives salary
from the society and the other salary from
an institution in which the society is largely
| interested.
There are in 1905 thirteen executive
officers in the socisty who held the same
positions in 1900.
4In 1900 these thirteen officers received
salaries aggregating 1927 900. In 1905 the
| same officers received salaries ggI egating
S44s, 500, an increase of $3.50 800, or 81 per
| cent
.Of the thirteen officers. three have re-
ceived no increase in sa'ary since 1900.
Deducting these, the average rate of in
crease to the other ten has been 81 per cent.
! The salaries Of six of the thirteen show an
ayera ge increase Of SO per cent.
The salary OF the vice-prcsident. which
was $50 600 in 1900 and 1901, was advanced
to SIS 600 in 1902 and to 100000 in 1903.
| The rapidity OF these increases is not only
unusual but there can be no warrant for
them through any question Of ability to
retain the officers services at lower rates
| OF compensation.
AT the time the vice-president received
| a salary of $50 600 he was "a years Of age.
When his sa airy was increased to SIS 600 he
was 20, and when it was a gain increased to
SlOO 600 he was 27years Old. These facts indi
| cate that the experience OF the officer in
question could hardly have been considered
a fa ctor in the estimation Of the value Of
his services.
1T is found that the vice-presdent OF the
= Il. - h-f< III,