THE EQUITABLE FIRE INSURANCE SOCIETY.

Otago Witness, Issue 2666, 19 April 1905, Page 14

THE EQUITABLE FIRE INSURANCE SOCIETY.

(From Ottr Own Correspondent.) ! CHICAGO, U.S.A., February 16. A 100,000dol fancy dress ball at Sherry's, in Now York City, at which Mme. Rejane, the Frenoh actress, is said to have danced J the can-can on the top of a table in the small hours of morning, may rost the family of the host, James H. Hyde, their control of the Equitable Life Assurance Society, j which has assets of 413,000. 000d01, and out- j standing policies of 1,500,000,000d01. A ' gigantic fight has been in progress during the past week to oust Mr Hyde from the office of vice-president of this the greatest single financial power in the United States. I The agitation was started with a request by James W. Alexander, president of the ' society, that Mr Hyde, as owner of a ' majority of the capital stock, consent to change the voting power, so that 500,000 policy-holders oi the company should have a voice in the election of its directors, and the company become really a mutual organisa- , tion : and it was further demanded that Mr , Hyde step down and out of the vice-presi- '■ dency. The reason, as presented in a written statement by the Alexander faction, was - '. that his prominence in various ways and ! ; his acts aa vice-president and aoting-presi- j dent in the absence of the president, with i : all the powers he has exercised, would be ' j most prejudicial to the welfare and pro- ] gress of the society and th© conservation i of the trust funds held for the benefit of the ' policy-holders." Mr Hyde, who is 29 years , of age, immediately gave notice that he ' would fight strenuously to retain control of the organisation founded by his father, and the subsequent meeting of the directors is . reported to have been the most exciting affray imaginable. It resulted in a com- , promise by which Mr Hyde agTeed to the •-. plan for the mutualisation of the company, but retained his position as vice-president, j It is now reported that the fight may break out afresh owing to a dispute as to the sum j to be paid Mr Hyde for his stock. The : Equitable is capitalised at only 100,000dol, j and of this Mr Hyde and his mother and sister hold 51 shares; but the assets at stake amount to 413,000,000d01, and tho control over this trust fund makes the ownership of a majority of the stock an important matter. Mr Hyde haa been offered in the past, and ' has refused, 5,000,cW0d0l for the stock. Sur- ' prise has been expressed that Mr Hyde, with his controlling interest, has not at once demanded the resignation of those who affixed their names to the petition protesting against his re-election ; but it is stated ! that Mr Hyde realised that the business interests of the society would be irreparably ' injured by suoh a move, as the signatures ! represent men whos© control of business ; made their removal impossible. 'One of the | officers is quoted as follows: — "Do you j know what the effect of Mr Hyde's fancy ! : dress ball has been? Well, it has hurt in- ; suranoe business all over the country. The '. manager of one of the biggest insurance , companies in the country told me that it . had hurt his company 1,000,000d0l already. If it had done that to an outside company, • what has it don© to the Equitable? There - has be&n no exaggeration, I assure you, of ; the effect of Mr Hyde's fancy dress ball. I want to say further that the movement for the change of the voting power to the i policy-holders has not been going on for a year, as reported in some places. It has < been going on just three weeks. I do not '. believe that young Mr Hyde is the manj;o 1 stop us in a change which every interest^bf his oompany and the integrity of its present directorate demand. We regard our course as the proper one, and it ia going to be done. The policy-holders of the Equitable can rest assured of that — it's going to be done." Another objection to Mr Hyde '. is the charge that he has formed financial ', associations of a character detrimental to the ; oompany. It is alleged that Mr E. H. Harri- '. man became a director by virtue of the ] fact that Mr Hyde transferred five shares ' of stock to him, which were immediately I i endorsed by Mr Harriman and returned to I the Hyde strong box. It is therefore ! alleged that Mr Harriman, while not really I ( owning any stock, i s a. director, and as such | is able readily to secure vast loans as they ! ; are needed for improvements and better- j ■ ments on hia vast railroad systems. An J , attaok is being made by the Alexander forces ; upon Jacob H. Sehiff, head of the banking j house of Kuhn, Loeb, and Co., with the < purpose of retiring him from the Finance ' Committee. While his personal honesty is J i not questioned, ifc is declared that 3.9 a mem- j ber of his committee he buys the bonds ' . which he sells as head of his banking firm. j {