New-York tribune., 1905-05-31
THIRD EQUITABLE GROUP.
Directors Who Hold Balance Of
PozCer IN Faction Fight.

The meeting of the board of directors Of the
Equitable Life Assurance Society to-day will
see the eliminating efforts of both factions in
the directorate to obtain control Of the society.
James Hazen Hyde, vice president. will go into
the meeting prepared for a fight to a finish He
and his advisers believe that peace can come
to the Equitable only with the elimination Of
one Of the warning factions, and they are de-
termined that it shall not be theirs James W.
Alexander, the president, according 10 his
friends. has been carrying on negotiations look
ing to peace. but his friends say he will not
abate in the least his demands for the mutuali-
zation of the Equitable.
third party, that of the Independent directors,
which has been growing in influence ever since
the beginning Of the factional fight, is likely 10
dominate the situation to-day. At first this
party comprised only few of the older dlreo-
tors. among them Senator Depew, who forsaw
into what the bitter personal fight between
President Alexander and Mr.. Hyde likely to
drag the society. Gradually other directors have
joined this party, until now it seems likely to
hold the balance of power. The directors who
| belong to this group say that whatever Is best
for the society must take precedence OK whaI
Mr.. Hyde would Ike or what Mr.. Alexander de-
sires.
The much discussed report OF the Frick COM
mittee will take about all the time Of the dt-
reotors, and it is possible that the meeting may
be adjourned in order that the report may be
digested before the board shall take action on
it. This report, It is expected, will contain sug-
gestions for the improvement Of the EQuitable's
management, as we'll as a commentary on con-
ditions they exist. It will take up the charges
made against MI. Hyde and the counter charges
rejecting on President Alexander and Gage e.
Tarben
While it is expected that Mr.. Hyde's friends,
IN the debate which will follow the reading OF
the report will urge that President Alexander
and Mr.. Tarbeu be asked to hand in their res
ignations, it is not considered likely by many
directors that the board will take such action
No designations are expected at the meeting or
immediately after it. Mr. Hyde's friends feel
that President Alexander might be allowed to
serve out his term, but that Mr. Tarben should
be dismissed Immediately If he refused to re-
sign
The Fricl report, according to the ideas which
directors have Of it, will say that the checks
placed In the Of the society by Mr.. dyoe
and Mr.. Alexander, representing profits from
the syndicate James H. Hyde and Associates
may be returned to them, the committee 10
confident that only personal funds were used 10
underwTite the securities. 1t Will be susseSteo
that In future no officer emplOye Of the
society shall go into underwriting syndicate
with other officers employees Of the society.
The agency department Is likely to receive ao-
l.
derstood. that while less money has been PAID
in commissions to agents, the expenses Tor writ
ing insurance have been greater than those or
other companies because OF the large induce
ments made to agents for writing extra large
amounts of business in a specified time. An eX-
cessve 'lapse rate" with greatly increased ex-
pense to the company, has been the result. 1t Is
said from this policy. A complete reorganiza-
ton of this department will be recommended, It
is believed.
Sweeping reductions in the advances to agents
also will be recommended, It is thought The
investigation has shown, 1t IS reported. that IN
stead Of 81 514 900. the amount of agents bal
ances as reported the figures approximate So
100000 The only collateral TO secure these
loans to agents is the renewal accounts, on
which the Equitable has been six and eight
years ahead it is asserted. instead Of the four
and a half year period customary with insur-
ance companies.
The report will take up the "nepotism' in the
society, it is said, showing that on the payroll
or in receipt Of fees brother, two sons, two
nephevs and a brother-in-law Of Mr.. Alexander,
their receipts amounting to about 100000
year.
| A report from superintendent Hendricks is also
expected at the meeting This will declare that
the Equitable insurance concern is abso-
lutely sound It is understood but that extrava-
gance in the management should be stopped, and
q more conservative salary list and a cheaper
administration in the agency department put
into effect.