New-York tribune., 1905-06-29

T EGuitabe Life Assurance. Society was also the
P pns aor Gf he TSs mae
scribing for this additional capital stock OF the
cred and the conclusion was reached ,hat s lo was
not wise for the iin increase its holdings
Of stock in the Ea9abele Ecu ABB dpns5 Tet Company
could be made success and offered 10 ,a take az.
of the Increased stock which others were oveeT
that the ?02 shares of stock taken in the name OF
er taken and used for the purpose Of distribution
among people who 1t was Dsiieosu nanW and we're
gauee pa1 fer my or Mr. McInyrs benefit
explained IT h as h MY esmony
him He is quite mistaken in his conclusion that
any tGc plan a the 5er EaTa6e Trust company had been
mapgsd MAJ 3 @ SH Of Stock s was offered which conclusion
was wholly without evidence in its suppoTt, @ No n o
tention whatever at that time of further increasing
ne The st0 business of the Equitable Trust COMPANY
however increased to such an extent ana ~ tas IL
was determined increase its capital ersd SICK iF1 ag
At this time the Equitable trust S0adPay ad si3ocsss
Moreover at this time the acceptance of trustee
ship more than one mortgage on me same COR, hv
the Mercantile Trust Company. criticised and
eerned wss S prohbited by the Stock Ex
change that became apparent Inst many M yI' Ins
of the Stock Exchange could not be be accepted g eg
over to the Equitable Trust Company, thus in
creasing business. ,,, ~.
there was room for another pig trust company III
tn this s G aRd the stock o the Equitable Trust
pany at this the price of $500 per share was
As It Turns out would also have been "a good
horton of the increased capital stock in 1902 at
$50 per share. but the ne sqeety Soc haa
matical fact of the future the superntende9t OF
past and could not be certain that such purchase
at that time would have been profitable,
NATIONAL BANK OF COMMERCE.
Tho sunerintendent of Insurance critcises the
merger Of Western National Bank Of IT, the city t
Of n nnq Ga upon the ground that
the society could have obtained 500 per share
%eseTn fer tS Satona Bank but that instead it
cepted $40 per share for TINS & st9eR f s ner share
was ever made for this stock or anything like that
ntendent of Insurance is mistaken in stating that
western National Bank of New-fork was Szlo per
share. .,,,u. 30 +,,,s stoor uss
SO IN cash a and n4S at par Of the Consoidatsd
matter Of fact sf tbhs ths t@e soek fof of @ sas
per share which meant s6 value in stock
ber hg @ per sbsrd value
society for each share Of the stock Of the & MeSter
put into the consolidation, 49,. hoard .,
dreeor eHs of t6e SOCIETY," to deerne whether
should account to the society for any lo OF tae
lent. AS the board has taken no action @ on aas tts
and reiterated that both as a legal and as a
moral proposition. should pay the full amount IN
claims have been made upon what believe d to be
fairer and more satisfactory to all concerned that
this question should be & ny ae
SOCIETY NOT CONCERNED IN sYNDIcATEs
At the moment I only call attention to the facts
that these syndicates were not organized for me
they did not sell any securities to the society that
in every instance the issue of the securities unGe
subscribed and that it did not make parneIe f of
these syndicates whether the Equitable did or did
not purchase any o. the securldes WHiDt1 4i0g The
fact that the Equitable did purchase from osas the
which we're thus underwritten was a mere comet
dence. No money made by these syndlcates at
is important note that in nearly every
syndicate securities authorized or ratified by
the vote OF the proper committees of the board OF
ing not interested in the underwriting IN ane
here this did not hsppen was 6;c RSi these
purchases were authorized or ratified The sgper s
intendent of Insurance is understood 10 coPta ara
that the amounts allotted to these syhbeab 4bs ndi
vfduaIs composing the syndcates. because the price
which the society paid on us Pt5f were made
1t seems quite obvious that except in very rare
cases the trust funds of the society should not be
risked in guaranteeing the sale OF an u!tiIeu
when however the issue has been entirely under.
yecTitieg gS StheTeby established their value
veStment may be considered as les
nv t6e society would be justifabe, when in most
6ae of IRgurahce is mistaken in his
statement 1 introduced these syndicate trans
actions
HYDE's STATEMENT.
Certain sales by the society of stock IN the
Trust Company to certain indlVlouals az PIT ,hs
| less than the prevailing prices on the DAY OF liie
As explained in my testimony before the .- SH-
perlntendent Of Insurance these SAFES ted oL fo
were made to individuals who We're eNPeGteo 3, aI 10
furnish and who have furnished 9snieE They
were made for the purpose of interesting these gen
| and because It was considered good business IoI
the society sell those shares OF STOCK al Iieoe
re9seo 2s matter Of fact however understand that
none sales made at price !ess tda tha
the average cost Of those several Stochs " 'A'o
The sale of the societys holdings OF the first Is
sue of Japanese bonds at a loss of 22 per cent Is
explained by the fact that the market price Price ra oa
these oqnd h mao dcetT that second issue these
bonds contemplated it was feared i4 tnao t me
second issue might still further depreclate a IIe
| market value For this reason they were accord
viii not go further into details concerning mat
ters in the Superintendents report most Gf W Waen s
are aFe4d{ 70 'ff the that
! 7 did not hesitate TO extract from the Socletys
treasury for his mY M soet fact about AZ @ this was
explained to the 5upeTnt9n@9et1 @ in 5Er Erope one and
~ vas iI conducted on behalf of the society by M
James w Alexander who wro5e e 1e 1a9 m folIaws
.tylIin viii tell YOU that the executive committee
has passed resolution buy out the stock OF the
seemed to think that it was good business SHg
der signeG P kN t is necessary for you thank
| body because the whole thing was done on "a com
| basis interest of the Equitable.
have been wronged by the inattenon OF tas tne
c as wS a baVe V gwen the EXHIBITS
| baya furnished and the statements have made as
to these syhdIeaie ind of The complaints against
to have received thelr M .Iasa % ninints