The San Francisco call., 1905-06-22
New York State Superin-
tendcnt of Insurance Sc
verely Arraigns the Late
Officers of the Equitable
LIKENS THE SOCIETY'S
EVILS TO A CANCER
Transactions of flames II.
Hyde and Associates" Are
Declared by Hendricks
to Have Been Unlawful

to Have Been Unlawful
ALBANY, June 21.-The report of Su-
perintendent Francis Hendricks of the
| State Insurance Department to Governor
Higgins. upon his investigation Of the
Equitable Life Assurance Society, was
made public here and in New York to-
night.
1t is described in the title as "pre-
liminary report" and sharply criticizes the
| management of the society. as well as the
new trust arrangement for voting the
stock. agreed upon by Thomas F. Ryan
and the three trustees designated by him.
In conclusion Superintendent Hendricks
says:
mo superficial measures will correct
the existing evils in this society A can
Ger cannot be cured by treating the symp-
toms. Complete naturalization, with the
elimination Of the stock, to be paid for
at a price only commensurate with its
dividends, is, in my opinion, the only
sure measure of relief.
This report, with a copy of the evil
dence taken on this investigation will
be transmitted to the Attorney General
for such action thereon as he may deem
proper"
James w. Alexander, president, and
JdiiicS L. IIyNC, III oL VIC PiCSi0Cht,
whose designations were accepted yester-
day by Chairman Morton. are severely
arraigned in the report Gage E. Tar
bell second vice president. is exonerated.
Hendricks finding that no substantial
evidence appears in support of the
charges against him.
VIOLATIONS OF STATES LAW.
Hendricks says it is an open question
whether President Alexander and the
other officers and directors who partici-
pated with him in the transactions CT
James H. Hyde and associates" are not
disqualified, under section 36 Of the in
surance laws, from Hereafter holding any
office in Il life insurance company. Ine
report chara cterizes these transactions as
unlawful. Tarbell's name is not in the
list of par i ,ipants in these transactions
The policy holders. however, the report
sets forth, are under great obligatio Is to
Alexander ard the. other executive off,.
GERS for demanding the naturalization OF
the society and the retirement of Hy1e
from its control.
A surprising feature of the presentment
is that Hendricks goes back to the organ
ization of the Mercantile Safe Deposit
Company III 1876 by Henry B" Hyde,
founder of the society, and declares that
this company, which leases its Office and
vault room from the Equitable Life As
surance Society, does not pay sufficient
ly and profits enormously at the expense
of the parent company, paying 2S per
cent dividends. The safe deposit lease
has &c years to run.
OF Henry B. Hyde and the organization
of the Safe Deposit and other subsidiary
companies, Hendricks says:
He did not neglect his own. interests
those CT his immediate associates and depend
ents in the society.
The relations of the Equitable and it's
auxiliary companies are discussed at
length OF Alexanders share in leases to
these companies Hendricks says:
James w Alexander says he signed these
leases under the direction of Henry B.. Hyde.
l believe this to be the fact. and 1t is the
most charitable construction which can be
placed upon his acts
HEAVY Loss TO THE EQUITABLE.
A loss to the Equitable Lie resulted from
the consolidation of the Western Bank of
Commerce of New York with the Western
report The Equitable Life owned about 12,
600 shares. or controlling interest, in the
Western National. and Valentine F. Snyder,
who was its president testified that he coald
have sold the controlling interest at 500 a
share. In the merger, however. the Equitable
Life Assurance Society accepted SO in cash
and $40 In stock of the Consolidated Bank
The syndicate transaction of James III.
Hyde and associate are referred to as no
given in the list of participants. and it is
shown that in various bond issues by Kuhn,
Loeb & Co., Speyer & Co.. j. r. Morgan q Co.
and Brown Bros. the syndicate was represented
in the underwriting The total profits OF the syn
dicate are placed at s1S6,107. of which S63, ,T3f
each went to James B. Hyde and James w.
Alexander. Another participant was William
H. Mcintyre fourth vice president of the
Equitable, whose share was S14 400 All of
those who took part In these dealings. the
port says. should be compelled to pay back the
sums received by them. This is only very
mild punishment says the report
In the record of Mercantile Trust Company
shares Hendricks found that on June 4, 1900.
100 shares of that comrany's stock were sold
to George j. Gould at $500 share, and on
the same day fifty shares were sold to H. G.
Frick at $3.50 per share. On December 20,
1901 100 shares were sold to M. L. Schiff at
5000 a share. and January 9 1902. 100
shares were sold to E. III. Hartman for $500
share.
The report shows that. on the advice
of Hendricks, Kuhn, Loeb & Co. re-
purchased from the Equitable 1000 900
of Missouri Pacific gold As of 1885, to
which Hendricks objected, because they
were collateral ponds
EXTRAVAGANCE IN SALARIES.
Extravaganza and waste in salaries are
severely condemned. The increase In this
respect in the executive department was
from $3.50, 500 in 1900 to s61310O in 1904. 1t
was found that President Alexander's
salary was advanced from $4,000 per
annum to 100000 without his request, in
order that James H Hyde's salary might
be increased to the same figure.
Chauncey M. Depew. the report shows,