The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-13
DOES HYDE MEAN YES OR MOI
OPPOSING IN COURT THE "HYDE
EQUALIZATION" SCHEME.


VINO Started the Trust Company Bust
ness, what Directors Get Loans and
SO On-AIexander Calls Agents 70 stand
With Hlm-InteFVenerS in Lord Suit.
very eminent New Yorker said late
yesterday afternoon;
L am a policyholder Of the Equitable,
and as a lawyer was interested In the argu-
ment concluded yesterday before Justice
Maddox In the case OF Franklin B, Lord
against the society. / heard the entire
argument and was very much struck with
the position taken by counsel on behalf OF
Mr.. James H. Hyde. have seen the pro-
posed scheme Of naturalization recently
ratified by the board Of directors, described
as the Hyde naturalization Certainly Mr..
Hyde has gained a large measure Of credit
for voluntarily conceding TO the policy
holders the right Of electing eventually =
majority OF the society's board Of directors,
and have little doubt that the unanimous
action Of the board would have been diff
fiCult IL not impossible without the belief
that Hyde was unqualifedly In favor Of
mutualizing the society TO that extent.
But it is as plain as day that Mr.. Hyde Is
now openly opposing in court the mutuaf-
zation said TO have been his own scheme.
The amendment Of the charter can have
no legality II it is rested upon the consent
Of the stock represented by Mr.. Hyde.
No lawyer will be found 10 deny this PROPOSE
ton, and certainly a lawyer Of Mr.. Inter
myers experience does not need to be re-
minded that an informally given consent
Of even a majority Of the stock Of COR
poration Is not effectual to support any
! corporate action requiring the consent
Of any given proportion OF the stock. Such
consent must be evidenced by a resolu-
ton adopted at a duly convened meeting
Of the stockholders, upon notice TO all OF
them. Mr.. Hyde's statement that he Is
unqualifedly in favor Of the immediate
| approval of the amended charter and Of
carrying through the naturalization Of the
society 10 the extent proposed is COM
pletely negatved by the action Of his coun-
sci in the Lord case He protests that the
action Of the board shall not be upheld on
the only theory under which it could act
at all and that it should he predicated upon
a theory Of consent which every lawyer
must concede to be ridiculous.
while the argument made on behalf
OF Mr. Hyde presents these curious features,
il at least has the value Of showing where
Hyde stands on naturalization. What hope
can the policyholders indulge that the
government Of the society is TO be In some
measure open 10 their participation II
naturalization Ia promptly assailed by Its
own sponsors within the sooiety2@.-poes
not this indicate that the whole question
is rapidly reaching a desperate tanglei
Maybe this Is the o bjeot Of the stookholding
interest within the society. II does not,
however, tend TO increase public confidence
in the administration Of the society which
may be said to-day 10 be the greatest need
that the society is under, nor does It indicate
much regard by Mr.. Hyde for the sensi-
bilities Of his board Of directors, whom he
persuades to action which later he socks
to defeat by methods which may at least
be said to be quite indirect
f. H. Hartman, Cornelius n. Bliss,
Brayton Ives, Melville +. ingalls, and h
c. Prick, members OF the investigating
committee of seven appointed by the direo-
tors Of the Equitable Life TO investigate
current charges touching the present man.
agement OF the society's Affairs, met yes
terday, approved a letter addressed 10
President Alexander and sent it to him.
The letter calls upon Mr.. Alexander
10 furnish TO the investigating committee
information in detail covering all tho
charges and counte roharges made by or
against any Of the officers, directors, trus-
tees or employees of the society; in short,
demands from the president all the data
which the committee was appointed TO
gather and investigate. In It's demands
the letter goes down even TO the roots OF
kinship in the society. II wants 10 know
who Of the employees are related by blood
or ma rriage 10 any one of the directors or
PRINCIPAL officers or heads of department.
and the degree of such relationship.
The committee promises President AIR
ander such assistance as he may need In
gathering and securing the required In
formation and remarks on its own behalf
that II intends that its work shall be thor
oughly done" The committee will, tho
letter says, investigate the entire manage
ment Of the society, although the data re-
ouired from President Alexander cover only
the period from Jan. /, 1900, to the present.
The letter was made public yesterday
afternoon soon after II became known
that discussion was going on in certain
quarters over the possibility OF an action
being brought In the Supreme Court by
Mr.. Hyde 10 depose Mr.. Alexander as q
trustee Of the stock left 10 youn Mr.. Hyde.
by his father. Henry B. Hyde. The ground
upon which such an action would be brought
would he that Mr.. Alexander had sought
10 depreciate the value OF the trust estate.
Samuel Untermyer, counsel for Mr.. Hyde.
practically charged that before Justice
Maddox in the Supreme Court In the Lord
Injunction action on Tuesday when he re-
ferred 10 Mr.. Abxnnder's reported state
ment that the stock had no interest In tho
surplus Of the society. The announcement
was made yesterday also that o Their minority
Stockholders will intervene In the Lord
injunction suit in support Of the plaintiff.
THE INVESTIGATORS TO ALEXANDER.
Herr Is the Hartman investigating com
mittse's letter:
To james w. Alczdndsr. Esq.. President Of
Equitable LUs Assurance Society Of ire
Uuuci States.
SIR: The committee Of seven appointed
April O. 1905, by the board OF directors OF
the Eauita BILE Life Assurance Society Of the
United states and charged with the duty Of
thoroughly investigating and reporting upon
the present management OF the society
and OF which committee ] am chairman. has
instructed me 10 request from YOU At as early
a date as you can and In writing duly verified
hy vouraelf and the heads Of the respective