New-York tribune., 1876-11-24
A SUIT AGAINST THE EQUTTABLE LIFR
INSURANCE COMPANY

Suits have been begun by Mr.. w. j. Butler,
an bebot of different plaintiffs against different life in
surance eompanes 10 test questions which have been
raised 10 some extent in general discussion heretofore
The first suit is that OF Lyman Elmore and wife AGAINST
the Equitable Life Assurance soeIcy and several Of its
directors stated in the complaint that Elmore Is
one OF $4,000 persons insured in that company whose
aggregate nsurances are $l75 OOO his insurance
for the benefit his vile being Tor 00O and having
been made 1870 His insurance entities him to par
ticlpate in tho profits Of the company. lie does not
charge that his insurance is not safe, but
he claims that the profits OF the company are not
honestly distributed He asserts IN the complantthat
the charter OF the Equitable Life Assurance Soeetyn
on basis partly that OF stock partly that of
mutual company, stock being llnnted 70 $lO0ooO
and the soeetys profits that stock to z per cent
year. Under the terms OF that charter only SIOOoa
year should be paid TO the directors and all other prgh
snoa De & b.' s9 oAty yfon9 10 en s1 ynnd cert to
project those Insured and preserIbes IN what seeuS
fiat is part of the proi,s OF the society," The law also
fixes what real estate an insurance compaqy may s
real estate needed for the TRANSACTION OF business Io
estate which under foreclosure OF mortgage II has oesa
Obliged t0 buy in for Its own protection real tss1'
veyed t for previous debt; real estate bought ~ On
reasons must be disposed OF within year unless & sho
Insurance Superintendent gives ah eAlehSion u ~
The plaintiff states the bylaws OF the company making ils
the President member OF all its committees and thea
charges that In violation OF tbs law the directors n5io
spenf large sums OF money I'm building the EqtaDss
building, being part OF the moneys held IN uus' a
for the policy yhOlders and spent without theH I,b
sent He charges that OF this great building Oh.7
or less is used for the purpose Of the society," ne
being leased TO other persons ana companies ~ o
pursus that part OF the property has 9ssh hi
for the purposes permitted by the law ~.
the maintenance Of the building is q great n, en
pense and the net result IL less than four ~r ont t
Inc money spent It, The pantih alleges lhas % sy
only has the money been expended reckessy ~ NAT
travaganty, but also cOfrupty aud dishonesty tbe
some OF tle officers and directors have shared III ~ ~
plots derived alleged To have been derived D ns
tractors on the buildings, and that fraudulent ~
and vouchers rendered and passed IN ad Oh tho
sonal profit OF such directors The complaint DOS Ss
state the names OF these officers and directors Da.
leave 10 make parties 10 the sn when dlscolsof
In conclusion the complaint charges a consPHss Ia tSa
the directors 10 retain control OF the capital stock OF Wy
company and of the $3O,00O,0O0 snrpos for theH Pn
use and profit - .e. and
The pr yer is for an account OF the trust funS s
asses of the corporation, which are ailcseo wseers
been misappropriated uniawfuy used by tbe
for an Injunction against Gny such further nnlaWi" rd
for receiver IL expedient Of such trust 1nnes, y
that the moneys unlawfuliy diverted be applied u.
dends on the plaintiffs policy. The complaint 10 s"
10 In ordinary form by Lyman ElmOre. -,
II appears on inquiry that this Is ouly one Oh ss'e
similar suits begun against the Equitable from u~e v
time, OF which has ever been brought to heas
The company disputes many OF the allegations IN w.
It is advised by its counsel that in oil points the "a"
strictly in It's favor. It's officers say therefore, ths'
proposes az heretofore nght all such suits TO the en
and sas It is always ready 70 vindieats ts