New-York tribune., 1907-12-05
Iotokef.
REJECTS HYDE PLAN,
attorney General UM Not Compro-
mise on His 1Ction.

Attorney General Jackson, it was announced
Yesterday will reject the proposition OF James
II HYDE and other former and present directors
of the Equita BILE Life Assurance Society 10
make restitution to the amount of more thah
81 600 600 as compromise of an action brought
10y the preceding Adorned General for an ac-
counting. In making known his determination
TO continue the suit that his predecessor. julius
NJ Mayer, instituted, Mr. Jackson says that
1ra offer of a compromise is too indefinite to
consider and further, that he has serious doubts
as to the ability of the prOposers TO make good
all their promises.
The offer TO repair the alleged diversion of
Equitable funds under the old administrator
was made to a committee of Equitable directors
appointed to take up the matter of restitution
This offer covered a variety of transactions Inc
largest individual amount was that which former
Vice-President Hyde agreed TO refund including
the $4,000 which he received in profits from
syndicates, in which also the company had an
interest. The Attorney Generals office received
the committees report through a communication
from counsel for Mr.. Hyde Negotiations re-
vealed that some of the affairs had been settled
Included in this settlement was the s6S500o loan
in the Mercantile Trust Company, known as the
81 w a No. account" and loan OF s25VoVO
to the Depew Development Company
The particular promises of the Equitable men
that Attorney General Jackson considers i'm
nossihle of adjustment apply to the question of
the Ieasehold values of premises in the Eqult-
able Building at No. 120 Broadway. These are
the leases of the Mercantile Safe Deposit Com
nanv the Security Safe Deposit Company and
certain syndicate transactions. The directors
committee express in their report the belief that
they can obtain the abrogation of the Mercan-
file Safe Deposit lease which prevents the max
ing Of anv improvements. This lease was made
o,7 such terms that for period Of fifteen years
tbe entire rental received was $3.50 less than
the money expended by the insurance society
for repairs the premises
The Attorney General has decided that, what
oyer the circumstances of this Improbable lease
ba cold not hope to disprove, If he accepted
tho FJvda offer so far as the lease was con-
oerned that the latter did not make il in all
good faith
The following persons in the suit brought by
the state were stockholders in the Mercantile
Safe Deposit Company: James H Hyde, James
w Alexander, Gage E Tarbell, Valentine P.
Snyder Thomas D. Jordan, Charles B. Alex
ander. Henry r. Winthrop. Alvin R. Krech and
William R Mcintyre.
Deputy Donnelly, of the Attorney Generals
staff who reported on the question of the lease,
said in his report:
THE complaint alleges that certain Of the
defendant directors realized large OF
money at present unknown TO the plaintiff by
reason Of the leases herein referred to, and no
settlement without the full knowledge OF the
Attorney General without the amount of the
profits so realized should be approved"
The states suit wifi come up for argument
on a demurrer some time this month