Daily press. [volume] (Newport News, Va.) 1896-current, 1905-08-26
Some Of the Most Damaging
Charges Against Society !,
Are Freely Confessed.
DIRECTORS ANSWER TO SUIT
Full Investigation OF Affairs of tic
Organization is Requested-Doubt
full as to Ownership of the Ten Mil.
lion Dollar Surplus on Hand-Ex-
cessve Fees and Pensions. ~
tHy Associated prcss.)


NEW YORK, Aug. 25.-The Equita-
BILE Life Assurance Society today Join
cd with the State of New York, in
asking for full investigation in corr:
OF its directors and officers, and the
alleged wrongdoing in managing the
moneys of the society. The document
which announced this determination
was the answer Of the fOrty-nino Eul.i-
table directors to charge against thea
in connection with suit brought
against the Equitable Life Assurance
Society by the State. This answer
was filed with Attorney General Julius
Mayer
Admission is made that some OIL
Gals of the Equitable have been guilty
OF improper and illegal acts. In all
eleven charges are answered by the
directors. Among these answers they
admit the S250,000 loan To the Depew
Improvement Company.
Waive Responsibility.
They admit the S6S5,0O0 loan of the
Mercantile Trust Company, but waive
responsibility in this loan so far as the
hoard of directors is concerned. and
indicate McssrS, Alexander, Jordan
Deming as the persons having The
most intimate knowledge of these
transactions.
The charge that excessive salaries
were paid 10 officers of the Equitable
is not directly answered. but admission
is made, that under guisc of salaries,
excessive fees were given 10 certain
Equitable officials, who were also di-
rectors i'll other companies In dc.
Tense the answer states that these
practices were not known to the whole
board OF directors.
Blame on Individual Officers.
Outlining their belief as to the hest
policy To pursue in liking the blame
for the Equitable scandals. the dircc-
tors say first that the blame for al
legged cases oil misconduct will be
FOUND to rest on individual officers and
not upon the directors as Il body.
Having made this explanation the an
swer then. admits in general way
the wrongdoings charged
The first charge specifically an
swercd is that premises on Broadway
were let at an inadequate rent to the
Mercantile Safe Deposit Company.
This Is admitted, hut it is denied that
(at the time this lease was madc)
James II. Hyde, James Alexander.
Gage r. Tarbell. Valentine p. Snyder.
ana Others were Stockholders and
directors in the Mercantile Safe De-
post Company
with certain reservations admission
is then made that the capital stock of
the Missouri Safe Deposit Company
was acquired by the Equitable Society,
which paid $3.50 per share for shares
OF par value Of 500.
Admits Unwarranted Loans.
AS to excessive and umwarrantcd
leans to agents the reply admits that
they were made.
The consolidation of the Western
National Bank. of New York City. with
the National Bank of the United
States. OF New York, in which money
loss resulted to the Equitable Society
ana profit to some OF its directors is
also admitted.
Admission is made that some of the
pensions paid were excessive and int
proper.
The Slo,0OO,OO0 surplus held by the
Equitable Society is the final item
considered by the directors and in sub
stance their reply to this charge is
that they do not know precisely what
their rights are regarding the surplus
and that they are willing to leave this
matter for the courts to decide.