The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1905-04-28
RECEIVER is ASKED.
trihutioa of the Equitable Surplus
Will Be Sushed.

Will Be SuShed.
New York, Aprt! 27.-ReeeiNership
proceedings were Instituted against the
Equitable Life Assurance society by j.
Wilcox Brown. OF |Maryland. a policy
holder. In the United states circuit
court lie fled an action against the so
ciety. asking a receiver of the surplus,
an accounting for the benefit of HIM
self and other p~olicyholders. and en-
joining the society holding the surplus.
Brown alleges that the society's Of
ficials have disregarded their trust, and
have not paid his proportion of the net
surplus. His counsel have issued q
statement saying that the huge surplus
of the society is not legally retained
from the policyholders nor lawfully
used by the society. and that the profit
due the ~policyholders. except the per
cent. dividends, is now attempted to be
swept aside by the stockholders claims
Another Case in Court.
Two other phases of the Equitable
controversy were i'll court.
Justice Mclean, in supreme court, re-
serve his decision in the case of Her
bert G. Tull. a po!icyliolder. who APP
piled for am injunction restraining the
societN's officers from taking further
proceedings to obtain AN amended
charter for the society. Mr.. Tull at
tackled the proposed charter as a
blind" which really gave nothing To
the stockholders.
Counsel for Vice President Hyde, of
the society. and Franklin Il. Lord. a
p~ohcyhoider' appeared before Justice
Maddox, in the supreme court in
Brooklyn. to oppose a petition by Pres
ident Alexander To strike out certain
references in which Mr.. HYDE inter-
Vened in Mr.. Lords injunction pro-
ceedings against the proposed mutual
4, ,1-- -...--
however a> the court had not yet re-
ceived the Alexander petition.
Explanation of the Action.
Battle & Marshall, the attorneys 70.
Mr.. Brown, issued the following state
ment today:
This is an ordinary p~olicyholder's
suit. The plaintiff. j. Wilcox Brown,
a citizen OF Maryland. consulted us last
autumn concerning his policy in the
Equitable society. He had a policy for
SO 900, taken OUT IN 1867. changed as
to terms in 1872. He had elected to
have his share in the surplus of the
society applied in reduction of pre-
miums. In the earlier stages of his
connection with the society these re-
auctions had been very considerable.
but although the business of the society
enormously increased. there was no
material further reduction in premi-
ums. On application to the society
he had been told the usual story that
all of this was due to a lowering of
profits on investments. caused by the
fact that rates of interest in later days
We're much lower than in 1867.
W. We're obliged to advise Mr..
Brown. when he first consulted us.
that we saw no basis for a suit. There
was no proof then in our possession
that the portion of the surplus prop
erty applicable TO diminishing his pre-
miums was misappropriated by the
society.
AS to the Surplus.
Recent events have shown %clearl,
that the huge surplus accumulated by
the society is not legally retained from
the ~policyholders. nor lawfully used
by it. The old charter of the society.
providing that the company shall be q
mutual company and that all of the
profits shall be apportioned equitably
among the policyholders except a divi-
dend of I pee cent. to the stockholders
is now attempted 10 be swept aside
by the present claims OF the stockhold-
ers of the society.
Brown. in the light of these facts. that
he and all other poliN'sr holders have
i just and clear right to the fund"
Many viii Join in Suits.
Philadelphia. April g1.-Joseph De r.
Junkin. of this city, WHO is one of the
attorneys in the suit Instituted in New
York today asking for a receiver for
the Equitable Life Assurance society.
said tonight that he represents a mum
Der of Philadelphians who are heavy
policyholders in he Equitable.
He said the intervertions will be filed
in New York by several hundred 9th
er policyholders residing in this city.
Their names. he said. will be made pub
ic at the time of filings of the papers.