The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-02-26
SURPLUS OF TIE EQUITABLE.
TTNNESSEE OFFICIAL TOLD THAT
IT HON'T M DII ERTED

In AM considerable Amount IN Pay for the
SlOO,uOO 81 FER Cent stock. and
'rhnt No such NV ersion Is Sertou siS
contemplated by Those In Control.
Gilbert u. Raine al Memphis, m officer
Of the lrsurance Department OF Tennessee
and editor of the ,Srimt1r, was in town yes
terday and had an interview with one Of
the high officials Of the Equitable Life
Assurance Society. Afterward Mr.. Raine
SAID,
The official saw told me it was not
seriously contemplated by any influential
body Of the Equitable directors TO divert
any considerable part Of the socety's sur
plus 70 the benefit of the holders Of the
stock by way of indemnity. As State
official Of Tennessee. where many Equi-
table policyhoders reside. | should feel
It my duty to make inquiry about any
diversion Of the surplus.
Touching the contract rights OF pr op-
erty rights of Mr.. Hyde. it is to be remem-
bered that, first. the two are the same Prop.
erty rights exist by reason of the society's
contract recognizing them. The property
rights Of Mr.. Hyde are determined by the
contract that has been made and reiterated
between the holder Of this stock and the
Iblli1lNINtlH VI Ntlt SDCltly. ana the CndTleT
law Of the society. The law of the society
hxeI maximum OF per cent. as the
advantage to come from the stock and this
has been emphasized and insisted on with
the public and the polioyholders in thu
Equitable A contract with several hun
dred thousand people would seem TO DO
quite Us binding as a contract made in the
lack room Of a bank with one man.
Placing the security furnished by the
Equitable ps on "a par with Government
80 IL
four times the amount of stock that IL, the
Government bonds paying in the neigh
horhood Of > per cent very high class
security paying per cent. might be sup
posed to be worth say four fs' one, and
no more.
Mr. Hyde's suggestion Of a partial
naturalization would carry with 1t sub
stantial progress, with an equal division
say, Of directors between the holders Of
the stock and the Policyholders, because
II would hardly he likely he could control
oil Of his own directors on questions involv
ing large interests or broad interpretations.
His appointment of as many as two-thirds
OF the directory would be no substantial
progress toward naturalization. The posi-
ton that the broad mutual plan OF Mr.. |
Alexander would contribute TO the creation
Of rings is poorly taken; the larger and
more numerous the field from which the |
votes come for election Of directors or |
trustees the less likelihood OF rings; |
Nli'lfdN cumming Wv NONlik power W u |
limited number or limited area or TO those
who could attend in person could very
easily produce ring methods and results.
There has been some attempt TO dis |
credit the idea that the universal voting |
power among the policyholders mutual !
lied the company, | had occasion 10 |
notice that the voting power did make the |
company actually mutual at the time there |
was controversy in the New York Life |
between MIR. Beers and his critics, which |
agTfIf n M afrvraa ion 7
general agent Of the New York Life at
that time, ard was called upon to secure
proxies from all of the company's policy |
holders in my territory. When things run !
smoothly and there is no friction, there |
are locally a sufficient number Of votes to |
make legal election; but when contests |
arise. then every policyholder is sought. |
so 1t seems 10 me, from this view OF 1t. |
the policynolder7 in n mutual life insurance |
company are just as potential as the stock
holders in a bank