Waterbury evening Democrat., 1905-06-24

of and approved the various subsidiary | undertakings which we have criticized, and by reason thereof has failed to meet the obligations imposed upon him as chief officer of the society, and 1t is an open question whether he is not disqualified under section 30 of the in- surance law from hereafter holding any office in a life insurance company, as well as all the other officers and directors who participated in these un- lawful transactions.
 Hyde Blamed.
 "Mr. Hyde, on the death of his father, became the owner of 502 shares of the Equitable society stock and acquired thirty-five additional shares, making a good working majority. He knew this, and others were quickly made aware of it. He did not hesitate to extract from the society's treasury 1852. 800 for his stock in the Missouri Safe Deposit company, made valuable only by the outrageous leases with the parent so- ciety. He permitted the society to lose heavily in its business transactions with the Commercial Trust company. of which he is a salaried officer and large stOckholder. He was very active in promoting the transactions by which the present Equitable Trust company was developed, and he there by profited largely, and became vice president at liberal salary By req son of the Equitable society's control of the Mercantile Trust company h, be- came vice president of that institution with good salary. He has been ac- customed to buy large amounts of se- curities and involve the society in other important ventures without au- thority. He has carried large holdings of the society's stocks in his own name. He exacted salaries out of all propor- tion to his age, ability or value of his services and caused those of his immediate friends and favorites to be unduly advanced.
 He is mainly responsible for the ex- travagant salaries allowed many exec utive officers. He has been accus- toned to draw large sums for ex- penses on his own unitemized vouch- CTS. In fact he has not seemed to con- slider himself accountable to any one for the expenditure of the society's funds. He introduced and conducted the syndicate transactions and involved others with himself. He forced him. self on boards of direction and into business relations with prominent men by the aggressive assertion of his stock control. of the Equitable society. and by those means he gradually assumed domination of the societys affairs until the presidency was reduced to a po- sition of secondary importance. His authority continued to increase, and he proceeded to use the society and it's assets more and more as if they were his own, until he was checked by the demand for naturalization and his re- tirement.
 ''The policy holders are under gzeat obligations to Mir Alexander and the other executive officers for taking this step"
 Mir Hendricks generates Gage E. Tarbell, second vice president of the Equitable. as he states that no sub- stantial evidence appears in support of the charges preferred against him. As 10 the investment of the funds of life insurance companies, Mr. Hen dricks says:
 T think it important that the next legislature should take into considera- tion the question of the investment of the funds of life insurance companies and establish standard of investment. As to just how far or to what extent they should be restricted in their in- vestments am not prepared to offer an opinion at this time Doubtless that question will be studied and thought out by the time of the next annual meeting F the legislature There can be no question, however, of the wisdom of prohibiting the invest ment of the funds of life insurance companies in subsidiary moneyed and business corporations controlled by life insurance companies which occasion the carrying of large balances for the benefit of those companies and for the who are largely associated ia the management of the society.
 Eliminate Stock Control.
 During the progress of this investi- gation a change in the stock control of the society has been made. and three trustees have been empowered under deed of trust to partially mutualize the society-that is. it is provided that twenty-elght of the directors should be elected by the policy holders. with the promise that there would be a re,iuc- tion in the expenses of the company and that the managers would institute other reforms in the management of the society which would inure to the benefit of the policy holders. I do noe question but what this is the honest intention of those who have acquired the control of the stock of the society. I do not think however. that this will % far toward restoring the confidence of the present policy holders or aid in procuring new business for the society. In my opinion the only thing that will restore that confidence and benefit the