New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-29
HYDE AND SCHIFF ACCUSED
NEW EQUITABLE SUIT.
Vice-PreSident Charged 7oith Enter
taung at Society's Eppense.
IBY TELEGRAPH TO THE rR1BuxE.l

IBY TELEGRAPH TRIBUNE.1
Albany, March 2s.-Still another turn in the
affairs of the Equitable Life Assurance Society
developed to-day when Senator Edgar T. Brack-
EFT petitoned Attorney General Mayer that such
action the latter should deem proper might
be brought against James H. Hyde. Jacob II
Schiff and such other officers of the society as
he shall decide should be Joined defend
ants The petition contains startling charges
directed against both Messrs. Hyde and Schiff.
The former is charged with wrongfuy taking
the expense of entertaining persons TO whom he
was desrous of giving social attention. notably
distinguished foreigners. from the treasury of
the society The costume ball. given by Mr.. Hyde
at Sherry's last January, is also cited in the Pc
tition as costing 100000. also taken from the
treasury of the society, while frequent entertain
ments on the Paris and other expenses of for
eign trips are also mentioned as improper diver
sions of the funds of the society
The petition further declares that Jacob H.
Schiff has been director of the Equitable for
several years, during which time he has been
partner in the firm of Kuhn. Loeb & Co, which
has sold $5,OO0OO0 of bonds and securities of
the society and that this firm has received
therefor commissions. of which Mr.. Schiff has
received a share, in express violation of the
statute The petitioners ask that these sums
be recovered and Mr.. Schiff removed and dis
qualified from holding the Office of director OF
any insurance company IN the State. The state
ment is also made that the funds Of the COM
pany have been used in reckless speculation
for some of the officers thereof" but no details
are furnished. In xieeg. of tina allegatiors rf,-
cited in the petition it is asked that the At
torney General compel restoration of the funds
that have been wasted and obtain injunction
restraining further waste, and that Mr. Hyde,
as well Mr.. Schiff. because of his alleged mis-
conduct, be relieved from office
ALLEGED TALK WITH ALEXANDER
Benjamin Wheat. clerk in Senator Brackets
office declares that he presented q copy of the
petition to James Alexander president of the
Equitable Society, in his New-York office yes
terday and that Mr.. Alexander read the charges
Asked by Wheat if he would make an affidavit
as to the true-- of the allegations. Wheat de-
clares further that Mr. Alexander said:
Il think had better take some advice before
answering"
Would you swear the statements made in
the petition are not true?'' Wheat says he in
quired, and to this inquiry Mr. Alexander is said
TO have replied:
Well no; I said before prefer not to
make any statement one way or the other until
I have had some opportunity to think the mat
ter over and get some advice"
Mr.. Wheat adds that later In the day he called
on Mr.. Alexander again. but that he still de-
clined to discuss the truth or fasity of the state
ments made in the petition.
The applicants in the petition to Attorney Cen
eral Mayer Mary s Young for whom Senator
Bracket has already begun suit TO force divi-
sion of the surplus funds of the society; Charles
P. Penfeld, Edward Pearsall Michael E. Nc
Tigue, James L. Scott and Edgar T. Bracket
of Saratoga; Robert o. Bascom, of Fort Edward,
and Eugene L. Of C,lenS Fall
Mary s. Young makes petition that on Feb
ruary Z, 1901 she purchased two 81 600 policies
from the society and on June 2 following an
other policy for $500. Each of these policies
provides for the delivery to her at the end of
twenty years of a gold bond of the society
payable in twenty years from date with per
cent interest Mrs. Young in her petition goes
on to recite that the society has capital stock
of 100000 of which she owns one share The
charter of the company it is further stated, pro-
vides that its insurance business shall be on the
mutual plan, that the stock shall receive per
cent, and that the surplus earnings of the com
pany shall be cumulative. She asserts that
the stockholders and pocyholders together
own the entire corporate assets of the society.
and that. without attempting TO define their
rights against each other, she herself pos
sesses the rights and interests of both a policy-
holder and a stockholder.
BRACKETT "A PoLICYHOLDER. TOO
Charles S. Penheld Edward S. Pearsan and
the other signers of the petition all testify that
they are policyholders Of the society Senator
Bracket admits holding policies amounting 10
$1,000 on his life
1t is further recited by the petition that the
charter of the society provides for the election
of ffty-two directors, which board at any time
may provide that the holder of policies amount
ing to more than 5000 in amount may have
the right of voting for the directors This right
has never been granted. it is asserted The So
ciety, according TO the petition. has assets of
more than $4p00oO00 and a surplus of more
than SS0000poo. James H. Hyde controls
majority Of the capital stock. ii is stated
The petition continues as follows:
said James II. Hyde is young man about
twenty eight years Of age and is the vice-presi-
dent Of said society He has had no extended
experience in business Of either life insurance or
other. nor has he rendered services of any value
Continued fourth page.
tcsn Iaxattvcs Cure r,-spcpsia nnd Liver eo,,