New-York tribune., 1905-08-01

refused to allow them TO appear as assets on tno
societys books, says the complaint, So 10 oo''i"
credit for additional assets on its statements 10
the Insurance Department, the society assignee
each six months certain amounts OF these oro's
to subsidiary trust companies. which trust
companies credited the Equitable with tnese
amounts. The Equitable In its statement faiied
TO report any liability incurred by IL TO these trust
companies for these loans s~--st- -e-.--
The complaint specifies s2 .24g 45 assigned to
the Commercial Trust Company. of Philadelphia
about December IL. 1904 and 81 53s. .s35 AZ TO the
Equitable Trust Company. On these loans the
Equitable Society paid cent interest, although
most of those amounts remained ON deposit in the
trust companies. the complaint alleges.
The directors arraigned for their choice OF
terms of payment for the stock of the Western
National. held by the Equitahle-12.OOG shares-in
the consolidation of that institution with the Ma
tionaI Bank of the United States of New-York.
They accepted $40 in cash and $40 i'm the stock of
the reorganized bank for stock which should have
formation furnished in superintendent Hendricks's
report.
LARGE SALARIES CRITICISED.
Section IA critieises the salaries paid to the exec
utive officers calling them improper. and large
ly in excess OF the value of the services rendered
by the individuals. II also comments on the pay
ment of expense accounts without vouchers prop
erly itemzed. Section Is takes Mr. Hyde's
salaries from the Equitable Trust Company. the
Mercantile Trust Company and the -Coplmercial
Trust Company OF Philadelphia. and the payment
OF fees and pensions to various employees and Off
cials Section is recites the large sums improp-
erly paid to'lawyers for unknown services
In section II the complaint charges that the
directors allowed the Equitable become
cordipg TO the belief OF the officers of the MeT-
camille Trust Company, sponsor fcT the loan OF
1855 600 to James w. Alexander and Thomas d.
Jordan The complaint tells about the notes made
by them as trustees" and the payments made
on this loan account, until il settled on July
II by some person persons unknown. The
complaint goes on
Plaintiff is informed and believes. and therefore
the books of said defendant society and that if
any OF said sums were from time TO time ad-
no account thereof appears upon the societys
@ hooks sd and that no has been fa H
said amounts so from time 70 time PAID 10 tne
account Of the defendant sSciety. that there was
no authority for such payment and ma that 10 reGord
society, and no benefit accrued to-, or was re-
waste e ana no loss of so much OF the funds and
property of said society AS may have oeen ap-
That If The said defendant society became obi,
gasse gay saG i'd s he d OF & or any p that
tbe said obligation incurred for improper ana
directors and 10 the detriment and disadvantage
Of the said defendant society.
DEPEW IMPROVEMENT COMPANY LOAN.
The Depew Improv ment Company loan is, is taken aiken
plaint There was at present more tnan S1IiH' iIb
unpaid on this loan says the coIppian n fhe i
vidual defendants agreed with the detenu1n So
ciety that they would said defendant society
harmless from loss by reason of said loan
The Equitable has habit according 10 oec'loi
49, OF maintaining unwarranted sums on deposit
I'm its subsidiary companies at inadequate rates OF
interest when it should invest these sums or part
of them. in remunerative forms Of investment
The directors for several years. to conceal this
fact and misead and deceive the policyholders.
have been lending about sl0O00C0 late in December
of each year collateral security. regularly call
ing in such loans January OF the following
year and depositng the money again in the sub
sdiary companies.
In the reorganization of the American Deposit
and Loan Company into the Equitable Trust Com
pany. the complaint charsest that the directors
caused the Equitable Society 10 refuse to take
its proportionate number of shares of the new
concern. The stock the Equitable refused was
taken by James H Hyde. Mr. Hyde and W. H.
Mcintyre, trustees; Annie F. Hyde, and a few
others of the directors and members of the execu-
tive committee. Afterward, the directors caused
the society to buy 1865 shares of the trust COM
panys stock at $500. when it valuation 1888 3d.
In arguing that the surplus belongs rishtfully TO
the policyhOders the complaint cites the Equt-
ables articles of incorporation. the State insur-
declarations to the Tax Commissioners Of this city
that the entire surplus belonged TO the pocyhold-
meeting OF the executive committee was held
ator Depew who announced that he came back 70
be the firing line After the meeting he said
"A
intend to DO so. He would make statement
the Improvement Company loan
meeting of some of the metropolitan agents was
held in the afternoon Those who attended were
almost all from Brooklyn Gage f. Tarbell made
a speech telling them what had been done as TO
cleaning house and what the society intended to
Afterward the agents were introduced to Pres-
dent Morton.
Julius Bohm. the who hissed James IL Hyde
the conference Of agents at the Hotel Savoy said
YESTERDAY that his business normal and
ne expected to write more insurance this year than
last in spite Of 4 falling off several weeks ago In
frs months of this his loss only
5 per cent. he said, fact which President Morton
considered remarkable. He his brother Rudolph.
Mr. TarbelI and President Morton held conference
together Julius Bohm. according to the Frck re
port. owed SS00.GC0 to the Equtta BILE for ad-