Omaha daily bee., 1905-08-01
Charges Made that They ted officers
to Loot Treas :
FUNDS ARE lMPRoPE Z txI
Complaint Demands that : tors Refr
Money to Soc
DEPOSITS MADE IN % BAN
Charges that Annual Reports Are
FaIsiAed, showing that Money on
Deposit Was Loaned Ons
Collateral.

NEW YORK, July s1.-An action was in
stituted today by State Attorney General
Julius NJ. Mayer in the supreme court, New
York county, in the name OF the people of
the state Of New York against the Equitable
Life Assurance society. It's officers. direc-
tors and members of the executive and
finance committees. all of which are named
IN the complaint The defendants are:
The Equitable Life Assurance Society Of
Louis Fitzgerald, Cheuncey M, De9ew'
Gs9TEes GssSTEs Smith, Smith, valentine VaGmaI s2yder
Alvin w Krech, william Alexander, John
saT SPsyton 5anfS fSe5 EeSs GEG Ingalls,
James II. Hyde, Alexander J. Cassatt,
Jae9b sGh Eamss j H Il ToSS SefPs0bb fasob
Astor, William c. VanHorne. Gage E. Tar
bell, Marvin Hughitt, Charles b. Alexander.
Dodge, Jose F. DeNavarro. Bradish John
son Joseph p. Low, John A. Stewart, Ed
eTG semost G f1esH parius 3 Mills. Robert ' T fin-
coin, George ]. Gould, John Sloane, George
Wilson tr Thomas Isndsr EGseT "tIeSV "HeSTy G G
Frck. Samuel M. Inman, Henry z. HaaI-
stack, David H. Moffatt and Henry h
Winthrop.
A week ago, before the papers were COM
pleted, Edward H. Hartman. on the eve
of his departure for Japan, accepted service
of the summons in the proposed action and
today many of the other defendants. in
cluding James H. Hyde, were served
through their private counsel. The defend
ants are allowed twenty days from the time
OF service TO file their answers.
Charges in the Complaint.
The complaint contains twenty-one sec
tions and covers thirty-three pages Of type
written matter. refers TO the Frick com
mittee report and the investigation made
- H.,
bricks; is based on Information and belief
and Attorney General Mayer in his prayer
to the court says that the action was
brought on behalf of the people OF the state
of New York in the public interests and
pursuant to the provisions of law. He
therefore asks:
1. That the defendants, each of them,
other than the defendant, the Equitable
b. aooonht for their OFFICIAL conduct in the
management and disposition nf the funds
and property committed to their charge.
2. That the individual defendants and
each OF them be compelled TO pay the de-
fondant, the Equitable Life Assurance So
ciety of the United States, any money and
the value of any property which they or
any of them, have acquired to themselves,
by a violation OF their duties.
3. That any defendant, or defendants,
now director or directors or officers in
the defendant society, upon proof of mis-
conduct, be removed, and that a new cleo
society regularly authorized to hold same,
In order TO supply the vacancy or vacancies
g. That the net surplus of defendant So
ciety, after deducting sufficient amount
10 cover all outstanding risks and obliga-
tions be paid to or credited to, or applied
for the benefit OF. the present policy hold
ers in equitable proportion in accordance
with the charter and with the law.
s. That the plaintiff have such other
further relief as may be just, equitable and
profitable"
Directors Accused of Neglect.
The complaint charges that the individual
y defendants. disregarding their duty to the
society of which Jney were directors, meg
ligently, improperly and improvidentiy per-
formed such duties and have habitually and
continuously done. or suffered to be done
wrongful, illegal and improper acts where.
OF the defendant society has suffered great
loss and damage
The individual defendants are further
charged with having acquired to them
selves. or caused or permitted to be trans
ferred TO others. in violation of their
duties, money. property. and the value OF
property belonging to the defendant So
ciety."
Section ten OF the complaint deals with
the lease of premises in New York to the
Mercantile Safe Deposit company. the
rental OF which is declared to have been
inadequate, and the terms of lease greatly
20 the disadvantage Of the Equitable so
ciety; Furthermore that James H. Hyde
James W. Alexander, Gage f. Tarbell and
other defendants were directors In the Mer,
camille Safe Deposit company and thereby
derived a profit in violation OF their duty
to tho Equitable society.
Safe Deposit Scandal.
Referring TO the purchase of the capita
stock OF the Mercantile Safe Deposit com
n. A. mnma
each 500 par value, the eleventh sectior
OF the complaint declares that the Equita
bic received but a nominal rent for tn,
premises occupied by the safe deposit com
pany; that at the time OF the stock pur
chase 1.4lo shares out OF a total OF 200
shares were owned by James II Hyde anC
the remainder by others OF the individua
defendants, some Of whom were oficers il
the Safe Deposit company and In th,
EquitQble: Furthermore at the time OF tn,
purchase the Safe Deposit company had n,
assets beyond the lease and the good viii
OF the business by virtue OF the lease.
The matter OF loans to agents. whicl
were assigned TO the Commercial Trus
company OF Philadelphia, is set forth. tn
charge being made that for the money ad
vanced on such assignments per cent in
terest was paid. while the trust compan,
at the same time held large sums OF tn
societys money for which It paid but pc
cent interest
Referring 20 the merger In 1899 OF tn
Western National bank OF the city OF New
York in which the Equitable society wa
the owner OF i2ooO shares with the Nationa
Bank OF the United States OF New York
the complaint says the society received 81
IN cash and iltO In stock OF the Consolidate
bank in exchange for each 800 par valu
= the stock in the Western National banL
making the total amount received $40 10
each share, the market value OF which a
the time was from 500 TO ts25 per share.
ExtravaEanee In Salaries.
A schedule OF the salaries paid durin
b the last hve years 20 the principal officeT
OF the society is appended 20 the complain
- -. !. - 49,. -