The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1905-08-03
INVESTIGATION into
Assurance COMPANY
SUITS BROUGHT AGAINST EQUIT-
ABLE HOME COMPANKIN
NEW LONDON

Complicated Investment in which Near-
Iy $500 Connecticut People Are FL
nancIaIIy Interested and as Many
More in Rhode IsIand--After Paying
in Money Its Alleged Promised Re-
turns yDId Not MaterIaIize-H Head
quarters First in Hartford, Then New
London ana Now BinghamtOn, Ny.
New London. Aug. 2.-The Equitar
BILE Home Assurance company. for
eign corporation doing business in this
state, and which has for some time
conducted an Office in this city, is to
become the object Of judicial investiga-
ton. Attorneys Abel P. Tanner and
John J. Lawless have brought threel
suits for local parties against theI
company in this county. Two of theI
suits are to be heard In the superior|
court Of common pleas and one in thee
superior court. The suit in the supe-
rior court claims damages Of $1,000 EACH
for alleged Misrepresentation on the
part Of the defendant company to the
plaintiffs bringing the suits.
The business Of the company isI
chiefly in collecting money from theS
patrons in the form Of dues and pro-
fessed loans. These loans are paid to
the holders through a system Of con-
tracts Of uniform denomination issued
for consideration and conditioned
on payment Of monthly rates ito pay
to the holder at maturity the loan Of a
thousand dollars. to be paid in monthly
installments and in sums that 1t re-
quires about sixteen years to complete
the liquidation. The dues are $1.50 a
month until the contract natures and
$3.50 a month thereafter OF this sum
the company allows fifty cents as a
brokerage fee which yields the COM
pany 500 on every contract perforln-
ed.
Under this system it Is necessary TO
issue fifty contracts to mature one.
The company is said to- have issued
about $500 contracts in the state Of
Rhode Island and nearly as many more
in this state, but SO tar as Is ascer-
tained less than forty have be y ma
tured thus far. 1t is alleged fhat IN
selling contracts in thiz>GTTy the coTsef1
panys manager assured each custom,
er that his contract would mature iii
from eight months to one year. and
money was subscribed on that assump-
tion.
When they found that the promises
did not mature in one year or In two,
most of the contract holders threw
them up. but some have continued
their payments until now with the re-
suit that but three contracts have ma
tured in this city out of 200 which
were sold.
When 1t began business in this state
the officers of the association werd
William H. Dodge, treasurer; Charles
B. Greene, secretary, and William r.
Dodge, general manager. The head
quarters were In Hartford. Its assets
were then represented as 81, 45S. 900 with
liabilities at $1,250, 900. According to
It's statements it had at that time re-
ceiTed $125,000 In brokerage fees alone
The headquarters were finally given
up at Hartford and were removed to
Providence. Since that time the con-
trolling interests have been transfer
red to A. X Howley, Of Binghanton,
N. T. Its present headquarters are To-
Gated there. The company was origin
ally incorporated under the laws Of
the state of Rhode Island and later if1
1902 commenced its operations in this
statae.