The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-06-06

longing to the society in his own name
| without first having secured the nu-
thority of the society: that he used the
| funds of the society to pay for the Cam
bon dinner (Which he subsequently re-
| turned: that lie conducted and parties
| pated in the profits OF the syndicates
| described in his letter of April q, 1905.
| having frequently as @ member of the
executive committee voted for the pur-
chase of such securities as shown in said
| letter in detail: that he is indebted to
| the society to the amount Of the profits
he has received, as shown by his letter,
| and that he has been guilty of other ir-
regular acts. irregular in the sense that
| they are not in accordance with the
society's law or with sound business prac-
tees. treating the society and It's affairs
largely as If they were his own per-
sonal concern
AS to the other officers Of the society.
the committee reports that general
looseness prevails In the societys affairs,
requiring prompt and thorough rectifica-
ton; that there is general lacking IN
the organization Of that strong moral
fibre. so essential to the accomplishment
of satisfactory results
The committee also finds that 'the
societys methods of doing business are
that the cash balances carried by the
society are excessive; that the society's
alliances with financial institutions are
unnecessary and undesirable in the con-
duct of its legitimate business; that Its
advances to agents, directly and through
fina ncal institutions in which the So
ciety is Interested. are excessive, and
that the society's efforts should be d.
rected to conducting a strictly legitimate
life insurance business at the lowest cost
to the insured, along the general lines
hereinbcfore Indicated
It develops that the society voted Mrs.
Hyde, widow OF the Equitablc's founder,
life pension of $4,000 year; that the
total real estate values carried during
the last year was s37,0oo,O0o and that
this vast sum Melted the society only
10 per cent interest: that in the year
its books at valuation Of sl5,ooo,oO. a
net deficit, exclusive of the use Of the
socety's offices, and after charging $685.
600 for rent for space occupied by the So
ciety, it then yields a net income of less
than 2 per cent: that the societys build
ing in ST. Louis is valued in its assets at
81 OoO, 900, with net returns to the society
of less than per cent. These latter
statements are made by Mr.. Tarbell, and
! in commenting on the St. Louis invest
rent, he says:
Here again safe deposit arrange
I,,onr x1yifh n 1noc rr q
is largely responsible the rents that the
society has received over a long period
of years for the space occupied by the
| deposit company ranging from 500 to $500
| per annum: and in order to be in a posi-
ton to offer the building for sale at
| 81, 0O,OOO during the last year or two. 1t
was necessary for the society to buy
the stock of the deposit company from
its owners, principally the Hyde family,
at $3.50 share, or at the rate of 100000
| for the safe deposit company. which
would leave the net sum to be realized
for 100000 building only s50o.oo0."
The Frick committee points out that the
society has carried a cash balance very
much larger than was needful to meet
said a few years ago that the society
could have made most desirable invest
ments in good securities which were then
selling at a very low price. If It had had
the ready money with which to purchase.
The committee says that at that very
| time the society had at least $50 100000
which, under ordinary conditions. would
have been perfectly available. but which
through alliance with other concerns was
so tied up that the opportunity was lost
These conditions may help to explain
the fact" 1t adds, ''that during the five
| years 1899 to 1908, inclusive, the Equita-
bic Society realized next to the lowest
average rate Of interest in It's invest
ment assets Of the thirty companies tabu-
lated by the Insurance Year Book, while
In the year 1903 1t stood the last on the
list''
| Notwithstanding all this, the committee
relterates the statement OF Its chairman
In his circular letter to the policyholders
under date of May g. 1905 that whatever
of acknowledgement may have existed In
the society has In no way impaired its
condition OF perfect solvency, as shown
In its annual report 1t appears, there
fore, that tho society has prospered in
spite OF misnanaGement. in spite Of
Syndicate operations" in spite of the
fact that its officers have schemcd for
their own profit rather than for the pro-
fit of the polcyholders. What might 1t
not have accomplished If it's affairs had
been administered In the interest Of the
pollcyholders?
No wonder these disclosures have had
the effect to shake public confidence
when we consider says the Frck
committee, THE fabulous accumulate
, held By such associations represent q
voluntary tax placed by the providen,
upon their lives, and when We recall
F, the tremendous self-denial and sacrifice
I that Is represented in daily living tc
, secure provision against the inevitable
!, then we begin to realize tho high anc
: delicate nature Of the trust involved II
y the administration OF such fund.