The sun., 1905-10-29
MRS, yOUNGS EQUITABLE SUIT
JtWs Ut/IN ~ ms ~ W NJ
mr. ,RhI ~ ~ s,HtTON
Enc, ,rutdslN tcru,rs W,dr = N sriun
N W,ftlH,Hn, a. n tsrbrii ard
srHr,rf Vrp'v NJ wfousfW tc,' 1ud
,prIr,, t,lrrrio,s ~ grrn,ittius fbeu,.

srnn,rt Vrp,v NJ wtousfh tcis 1nd
,rrlTi, brrriofs ~ Permitting Thew
s,n,tpr, Uh ~ nrrfa wrfr prr
srntoI tpd ntpucd iu dny IN tho matter ~
tho dcuutirt ~ .lnlnei IiHyru iiydc u eninst
lhn rrtuNll,o' aot,rl 80 him aud tho W'v
other directors " tho Equitable lifo tasut'
nrrc Sur cly ny MARY { Young ~ Snfniosa
Springs ~ atorkhrlirr and prlicvholief
~ the cnnrany Louis Nnrahnll ~ Uueget
hcimor tn,rtmecr Marshall appeared
for Nr iivdc and Souniut Edgnt '.
lirrRmt fpr Mra Young Judge W Y.
kpllppH preaihnd ~ Judge John NJ kel-
lnra vns iu,atavitnl"d owing 80 hia being
u roicyhpllcr ~ the company Decision
VIVA reserved
The complain, alleges that tho direct ora
hayr knowingly permitted such wrongful
n,.t IONS to hc done that the Equitable ao-
clrty has suffered great loss and damage
and ita funds and assets wasted. The d'-
fondant, James n. HYDE, is accused OF
having wrongfully made profits 10y Under
writing securities, uf renting property ~
ia" society to companies in which he was
Interested at less than their value and OF
wrongfully taking large sums of money
from the treasury for expenses without
rendering items Of such expenses.
Jacob H. Schif IL charged with having
wrongfulv charged commissions upon sales
Of securities to the society, Edward II,
Hartman of wrongfully selling securities
in which he was Interested to the society,
Gage h. Tarbell of wrongfully selling GER
tain interests to the society, Chauncey NJ
Deorw of receiving money from the society
for which no ,A'ue was received in return
and John j. M~'>k, Charles b. Alexander,
Henry c. Demng, Alvin W, krech and
William II Mcintyre of having, as directors,
permitted such v rong acts to be committed.
OF the various demurrers received that
of James Hazen Hyde was noticed by the
complainant as being most comprehensive.
1t is on the grounds that 1t does not state
sufficient facts to constitute cause Of action.
that the court has no jurisdiction, as the
permission of the AttorneyGeneral to
bring suit as required by Section SO OF the
insurance law has not been secured, and
that causes of action have been improperly
united. 1t also alleges that the paintlh,
by reason of not having applied to the
directors of the company for the relief de-
manded, had failed to exhaust all other
means of redress before bringing suit.
These points were argued at length by
Mr.. Marshall. who cited voluminous authori-
ties. In his answer Senator Brackett
held that the action was an equitable one
and the court therefore had Jurlsdlctlon'
that the complaint stated a complete cause
Of action, that the action being in equity
the complaint in reality contained only
one cause of action arising from the wrong
ful negligence and careless actions OF the
defendants. So far as the jurisdiction
H. IL W
in the first place, that section SO did not
forbid suits of this character, and in the
second place, if it did. sufficient consent
had been obtained from the Attorney
General, and that anyway section SO was
unconstitutional and it really did not matter.
10 tne claim mat the directors had not
been requested to bring suit themselves
Senator Bracket replied that DackwoodS
lawyer, living in town where they wear
fur leggins eight months in the year, would
present pretty spectacle entering the
palatial Offices of the distinguished MIR.
HYDE and requesting him TO bring suit
against himself, and that as the parties
accused of wrongdoing were in control
of the society at the time of bringing the
suit his client was not required by law TO
apply to them for relief.
But" interposed Mr.. Marshall. there
Is new set in now,
yes" replied Mr.. Bracket. -and | fatter
myself that .,lary Young and her one eve
ldllD Oh Siiis!e Siieiio VI s'oSn piouShe
it about
You fatter yourself unduly' responded
Mr.. marshall.
perhaps" said Bracket, "but | have
been the John the Baptist in this insurance
business so long that l like to sit down to
the table and take to myself some of the
good things that are going around:
MIR. Bracket in the course of his argu-
ment devoted most of his time to Section
SO of the insurance law, which he charac-
terized a. a rascaiiy piece of legislation
The man who drew it up said the Sena-
tor, had insurance money in his pocket
and knew that he was filching from the
people, and the men that permitted it to pass
forgot their obligations as representatives
Of the people
he law was passed, he said, -by swnish
corporations, so that they would have only
one rat hole to watch. and, furthermore,
he declared that representatives of the
insurance companies had attended every
State convention since to see that the right
Attorney General was nominated, although
in the present instance they had slipped
up in their calculations. IN conclusion he
urged Judge Kellogg to pass on the con-
sttutionalitv Of the law.
Mr. Marshall professed to be taken by
surprise al the claim that the law was un-
constitutional and asked permission to hand
in an additional written brief which was
granted. Jud Kellogg then took the
ma ter under advisement, announcing that
he would hand down his decision later
James S. Graham first deputy assist
ant of the Attorney-General. was present
in the interests of the Attorney General,
who has brought similar suit.