The Cairo bulletin., 1905-08-01
Shot Poured Broadside Into
Equitable Officers by At
tOrney General Mayer
STINGINC ACCUSATIONS
MADE AGAINST THEM IN ACTION
BEGUN IN NEW YORK YES
TERDAY-MuST ACCOUNT
FOR MANY lRREcu-
LARlTlEs.

New York. July 3l.--An action was
instituted oday by State General May.
or in the Supreme Court Of New York
county against the Equitable Life As.
surancc Society. its officers. directors
and members OF the executive and
finance committees, all OF whom are
named in the complaint.
The defendants are allowed twenty
days from the time OF seryica ID file
their answers.
The attorney general asks that the
defendants account for their official
conduct In the management and dis
position Of the funds and property
committed to their charge. That each
defendant be compelled to pay back
any money and value Of any property
which they have acquired to them
selves, or transferred to others, or
lost or waeted by violation Of their
lauttSS HAT alt9 uStCiiudHt nDW ui-
rector or officer In the defendant
lsecipty upon proof Of misconduct be
removed and that new election be
held by the society's board, that the
Inet surplus Of defendant society, aft
or dednctlng sufficient amount to COW
er all outstanding risks and obliga.
tion. be paid to Oh credited t0, On ap-
piled for benefit of the present policy
! holders IN the Equitable proportion tn
i accordance with the charter and with
4liaw.s. ]. @Ssrs n! n!
The complaint charges thar THO de4
Il Pendants, disregarding their dirty to
The society Of which they were dlrec
tors, "negligently. improperly and I'M.
orovidently performed such duties ana
haVo habitually and continuously
done, cr offered 20 be done wrongful
illegal and Improper acts, whereof Tho
. defendant society has suffered great
loss and dame."
The defendants are further charged
with having acquired 10 themselves,
ler caused or permitted to be trans.
ferred to others III violation Of their
duties, money property and the value
J. 1f property belonging TO defendant so
/, cietyH
The lease of promises 10 New York
70 the Mercantile Safety Deposit com.
1any and the purchase of the stock
I u the Safe Deposit company are de.
I elared 10 have been 10 the societys
, disadvantage, but an advantage to the
ffieers concerned.
q The complaint goes into details OF
I the various transactions In which Ii Is
Y alleged certain officers prOfited BY
y permitting certain companies in which
y they were directors to handle the So
: cietys funds.
The schedule of salaries paid during
the last five years to the principal
1 officers of the society Is appended To
the complaint, which declares such
salaries to have been largely in ex
cess of the value of the services OF the
persons named and that the payment
Of such salaries resulted in the sub
T stantia loss to the society
The allegation is also made of nay-
ment Of illegal and excessive pensions
TO various persons and the payment
. OF excessive. improper and unwar-
ranted sums to various attorneys and
cnnnselors at law, the aggregate
amount OF which far exceeded ana
\. was entirely disappropriated to be the
= services rendered"
On the transactions Of James w
y Alexander and Thomas D. Jordan with
!. the Mercantile Trust Company, the
n complaint declares that the books
contain no record OF such transac-
I ton and II the society became obn.
= gated to that company to pay $685.
!, 600, that the said obligation was in.
u Cured for improper and illegal pir.
\, poses,
N The complaint declares that the
loan Of s250000 to the Depew Impro.
y ment Company was improper, and
II cites the fact that after the company
N became insolvent its property sold for
tifty thousand, and that sai,i company
d has failed to pay the amount Of losses
u the society has suffered.
e The keeping Of unnecessarily large
Ie deposits in the banks when they
could be more properly invested "a
IN complained Of The various viola
rs tions ct the society's charter due the
IN officers and directors are charged.
Re The complaint declares: "The pres
a. ent policy holders are entitled to the
70 whole and present net surplus. after
81 deducting sufficient amount to cover
all outstanding risks and other oblI
m rationM and are entitled 70 have an
n equitable share of said net surplus
a, credited to or paid 70 or applied for
3. henefits Of each present policy holder.
q. In accordance with charter and with