Daily capital journal. (Salem, Oregon) 1903-1919, 1905-06-23


however, the Equitable Life Assurance
Society accepted go in cash and $140
in stock Of the consolidated bank.
The syndicate transactions Of
"James II. Hyde and Associates" are
referred to as notorious" James
W. Alexander's name is given in the
list of participants, and it is shown
that in various bond issues Of Kuhn,
Loeb & Co., Speyer & Co., J. p. Nor
gan & Co. and Brown Bros, the syn
dicate was represented in the under
writing. The profits Of the syndicate
are placed at $1s6,1O7, of which $685..
731 each went to James II. Hyde and
James w. Alexander. Another par.
ticipant was William II. Mcintyre,
fourth vice-president Of the Equitable
whose share was $14,42O. All Of those
who took part in these dealings, the
report says, should be compelled to
pay back the sums received by them.
"This is only very mild punishment, -
says the report.
Sold Stock at Reduced Rates.
In the records Of Mercantile Trust
Company shares, Mr.. Hendricks found
that on June 4, 1900, 100 shares Of
George J. Gould at $500 a share, AMI
on the same day so shares were sold
to H. G. Frick at $3.50 per share. On
December 20, 1901, 100 shares were
sold to M. L. Schif at 5000 a share,
and on January 2, 1902, 100 shares
we're sold to e. II. Hartman for $500
a share.
The report shows that on the advice
Of Mr.. Hendricks, Kuhn, Loeb & Co.
repurchased from the Equitable 81.
900, 900 Of Missouri Pacific gold fours
Of 1915, to which Mr.. Hendricks OBJ
iected, because they were collateral
bonds.
Extravaganza and waste in salaries
are severely condemned. The increase in
this respect in the executive was from
$3sO,sOO in 1900, to s613,1O0 in 1904.
IL was found that President AleIau.
doris salary was advanced from 49,.
900 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 re
port shows, is paid 100000 a year as
attorney. David b. Hill received
$4,000 a year, and Elihu Root for 1905
$4,000, also as attorneys.
OF James II. Hydo's directorates in
various corporations Mr.. Hendricks ex.
presses the opinion that he was "put
on these boards for the reason that he
was the financial head Of a great in.
surance corporation whose assets were
so large and whose ready money was
always available for the purchase Of
securities which these great corpora.
tions are largely in the market to
SELL"
The pension Of $4,000 to Mrs. Henry
b. Hyde is condemned as unnecessary
and probably illegal.
Nearly All Directors Dismissed.
OF the directors Mr.. Hendricks
found that only ten Of the so owned
stock in their own right, and most Of
the others qualified on Hyde's stock.
"H. G. Prick is the only man., " says
Mr.. Hendricks, "who on the record is
not under obligations to Mr.. Hyde, and
he qualified by Hyde stock"
OF the financial administration Of
the society Mr.. Hendricks says:
''Tho executive committee transacts
all the important business of the socie-
.ty. The finance committee is composed
of exactly the same men as the execu'
tive committee, with one additional di-
rector, viz; Jacob III. Schiff, senior
member Of the firm Of Kuhn, Loeb &
Co, which has sold to the Equitable
Society, according to its reports, since
January l, 1900, $47,552,0O Of bonds
and $l,7sO,OOO of stock"
Summing Up Of Charges.
The report, after the recital Of facts
and figures as above, then takes up
the charges against Messrs. Alexander,
Hyde and Tarbell, the last named being
e%xonerated. OF Mr., Alexander Mr.,
Hendricks a y uncontroverted testi
mony shows that he was a participant
IN the "James II. Hyde 4 Associates"
transactions, that he executed the
leases detrimental to the society's wei.
fare and has failed to meet the obliga'
tions imposed upon him as chief officer
Of tho society,
The summing up against Mr.. Hyde
is more severe, 1t sets forth that he
permitted the societ 20 lose heavily in
its business transactions with the Com
uaarefaI Truaf annnauVs that ha Az. |