New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-11-16
INSURANCE STOCKS md RINGS.

SOME POINTED INQUIRIES ANSWERED BY THE PREsI-
DENT AND ONE OF THE COUNSEL OF TIE EQUIT-
ABLE LIVESTOCK RUN Up TO HIGH FIGURE
ORDER TO PROTECT TIE INTERESTS OF THE
COMPANY.
Several inquiries have been made to lHE
TRIBUNE why the stock Of the Equitable Life Insurance
Society Of this city should bring at public sale S453
share when by the charter of the company the socety
pay only per cent per These inquiries
are highly proper and the naked statement OF the fact
that stock yielding only per be sold in
open market for four aud half times OF its par
value ia calculated Npaned to excite inquiry from
the policy holders. In compliance with the request Of
correspondent Of THE TRIBUNE, interview has been
had with tho President and OF the counsel Of the
Equitable, and their explanations such should be
satisfactory and rcassurng TO honest inqurcrs They
referred at to the following article in the charter OF
the company:
The capital Of said company shall be 100000 in cash
divided into GOO shares or 500 each, which shall be
Personal pr perry. transferable only the books OF the
company, IN conformity with ITS bylaws The holders
~ TIE said capital stock may receive semi annual dl'
dud Tho stock hed 10y them not to exceed Big per
cent &" the same. such dividends to De paid AT the times
and in the manner desgnat by the directors OF SAID
Company Inc earnings ana rcellts OF sald cOmp3hy
over ana above tine ddcndS, losses aud EXPENSES sha
be- accumulated
The stock Of The company is 100000 divided into
shares of 500 each. This capital il in bonds of the
United states, and is deposited at Albany. This capital
paiy prcc!udcd by law from paying than seven
por cent IL Will DC seen that but per cent upon the
capital, $1,000 J., charscdble upon the funds of the
society. In this point the staten ut Of the officers and
Of THE TRIBUNE correspondents are alike. II is there
fore apparent that other than the intrinsic
value 81 the stock caused it 10 De mp 10 The large
price hl for and referred 10 by these correspondents
Tho existence Of combinations secret and OPEN for the
purpose Of prcying upon corporations i well known
The efforts made by the notorious Thomas c. Fields sew
crl years ago by legislative Investigations, To
induce life Insurance companies TO buy their peace
well known. For entire Winter the officers OF prom
mcut ~, insurance companies were under examination
1T Albany by Fields, not only To the affairs Of the cor
Inguii.us, hut the most minute inquire, pressed
into the personal affairs OF the witnesses. Failing 10
tort money, the inquiry dropped and report
eyer made to the Legislature Succ that time the
Lnaoa, before referred to have pursued the ac
t". but not boldly practccd under the Ring
efforts been made by the companies 10 inform
the Legislatures which have that time met OF the
motives governing such attacks. and the strict scru
tiny ol the Insurance Department Las done much TO
assure the honest members of the legislature that an
inquiry into specific the heads of the depart
t.'ut5 pglHa facic evidence OF attack such
De-, Do, "a mentioned.
r.c hruu,.- of the LEGISLATURE. I'm great measure.
h.- prevented that body from being used engine
~ oppression, and the c"rsplltors have been forced 10
other methods 10 attain their object Tie present plan
o. attack corporations under the cloak OF injured
s.1c3huI,r n the courts Certain rights incident TO
'r holding oi stock q corporation Inch Doe given
iD other way. and where the of business
d..s upou ,creIt to the extent that he Insurance
u.r- tu, attack Of q stakeholder would carry great
rtiLht and would seriously niurc the policy holder
IrHu-ut from corrupt motives. knowing this fact.
Clos. Hu -r 10 obtain money 10y tAtoAirniHe the credit
.I . Insurance compaui., governed the stock prn
,,'r have for years 'ulca,or,l to become the
.. uer, 81 shares. Tho death - n director
a..vu to hold stock has IN most cases caused
application To De- made hy these people some
time, with orr, sui higher than the price which
2, tahle stock lately brought The directors Of ibis
..rrus have therefore considered 10 sacred duty 10
lrH such hHnI.. Previous O." iIr itt -tr M!"tm'L"L
was received by the director, NJ the Equitable thar
,tr Il been made ID purchase il' TEN Sidir@ "i-
'..t,,. fur SALE flr thr purpose o using them aS
UIt .l., 81 atfttkIr. the company. number az the
d '..- agreed TINT possible tiP DANGER should Doe
rtrI. and they attended the sale FOR this purpose.
sou. r"' wac hu'l' prylHt'd ~ me Pr." niHri anu
'.fl. rIrpy,' ,iwpy ~ projecting The policy holders
ALICIA similar sum. offered DIS stock 40 public sale, at
30 ul.,.t price OF tirO htndrcf but the rcpre-cH.
tit'r n those who vcrr seeking the control ~
-lr Ir ~, pup"" fri rfrl 20 H,i u, hE present ~"
i.i rqdr. di,i M s'Irt rI dscif'i uUsoid y
urut other than scSc per cent b, derived 10y any one
.r0u 'r Dos means Of holding ihi- stock moro are MY
directors 81 The company each ~ whom must pos
-t.- tive shares tu constitute min such. number oi
800 L.'I more tltU five shares. nor l. there
-tutl.
I statement above -v,u fully and with entire frank
veil the other inquire, aud suggestions.
Oh, .r'y p,lat which /, not Touched J., a." question
whether The company +, not 10 DEE closed ont and the sur
Et OF Stockholders and director, D, sufficient guaranty
that corrupt combination f'r such an unworthy pur
'u- -4upy impossible, and without such combination
II could not De- accomplished.