The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-04-22
SUIT IN UNITED
STATES COURT
Receiver Asked For Equitable Assur-
ance Company.
SERIOUS CHARGES MADE
ACTION STARTED BY POLICY
HOLDERS.

Chicago April PA bin fer the APP
p0iHtment Of a receiver for the 3quit-
able Life Assurance society of the United 1
States and seeking an accounting was /
filed i'm the United States circuit court
here today by Attorney D. j. Schuyler /
The petition is filed in the name Of Abb
raham Sitron and others, poiicy-holders ]
OF the society SitrOn says he holds d |
S2.Wo policy i'm the society and that MS /
interests are being dissipatCd by the Of I
fiCers and directors of the society lie /
names specifically President }. W. Alex |
ander and Vice President James Il. Hyde |
Violation of Charter.
Tn the bill President James w. AIeXan- |
Or and VICE PRESIDENT James ~; ~ 0 oT
are charged with mlSappruDFldlloh ~ /
funds and mismanagement- The bill also
declares that for ten years the charter OF
Inc company and the laws OF New YORK
have been violated nasmuch as the OF
ficials have failed TO distribute the profits
OF the company among the policy holders.
The complaining pOlicy-holders are
seven in number. each holding polcleS
Of from 81 900 to So 80.
said that the comDlainauts had a meet
ing and decided to take the matter into
,bC Fl,I,-oI lint II &c tbaTr wish ne
said, to have receiver appointed AND
the affairs Of the society ended. SO that
the poicy-holders may have a just distri- /
button of the funds and profits now on
hand.
VIII 90 INTO COuFI-
No further steps than the request in the
Of a receiver. but Attorney Schuyler said
that within a few DAYS he VIII go into
court in this connection
The bill alleges that for number of
months the president and vice president
and directors of the corporation have en-
gagged IN q controversy IN relation 10 IlS
mana cement Of the business transactions
of the company. and also in relation TO the
This controversy, 1t is declared, is prov
ing detrimental and destructive to the
business of the corporation and the IN
terests of the DOliCy-hOIders. The con-
trOversy. it is alleged. is between James
w. Alexander and James H. Hyde and
TONERS alege fear on their part that the
of the corporation
Wrongful Use of Assets.
The bill further recites:
James w. Alexander and James II.
Hyde and certain directors and executive
heads of the corporation have in violation
of the corporations charter and the laws
of the state of New York, f-audulently
used and converted money and assets OF
the company to their own use and have
fraudulentIv used. manipulated and dis
siDated and otherwise disposed of the
money and assets I'm such a way and man
uer that the corporation has lost hthe
AInIsrdeT HyIe and other directors and
that Alexander. Hyde and the directors
have made large profits as result OF
these maniDulauons- The profits. while
unIawfully and fraudulently appropriated
10y Hyde and Alexander to their own use
without any accounting for the assets 50
used or for the gains and profits SO. as
aforesaid unlawfully and fTaudulentlN
made by them in the manipulation OF the
Bills For Pleasure.
Another allegation of the bin sets
forth that one or more of TN Officers
; and directors under the unld ~fuI and
fraudulent guise otarretenSes OF promot-
ing the business of the corporation by
advertising. have charged to the com
pauy large amounts expended by them
for their own personal use and pleasure.
and for which the corporation never re
ceived and benefits and that the of
ficiaIs have paid hack To the company
out Of the money taken from the assets
and used for their own benefit and pleas
ure certain large sums of money. and
that these sums are but an insignificant
part of the amount drawn out Of the
ated by the officials for their own pleas
,ire and individual profit, and not for the
benefit of the corporation or its policy
Accounting Asked.
The bill asks that an accounting be I
given OF the surplus and assets in order
that the amount OF surplus for distTiPu-
ton may be ascertained- reservation
is made i'm the petition whereby all
death claims NAV he paid should the
affairs Of the com2any hS nN0ived pm
litigation result Of the bill The
bin also asks that the affair be referred
10 as master i'm chancerN so that the
amount due TO each policy holder out Of
the surplus may be determined for the
purpose Of distribution The petition fur
Their asks for Injunction restraining
selling. dealing. manipulating or I'm any
way disposing OF the surplus and assets
Of the company eNceut to pay death
claims. and that receiver be appointed
10 take charge Of the money. property
and assets of the company-
ExtraVagant Salaries.
The charge is also made that the sal /
aries Of the officers have been eNtrava-
giant. In addition. attention is called to
the statutes of the state of Illinois. /
which require that life Insurance com
panieS doing business in Illinois upon the
principal of mutual insurance may make
distribution of their surplus funds either
annually or once in two. three. four or
five years. as the directors may from
time to time determine. The complain
ants alleEe this charge upon iuforma-
tiOn and belief that the officers and df-
rectorS Of the Equitable have omitted
and failed for the past ten years and
upward and still refuse 10 distribute the
surplus profits and the surplus assets of
the Equitable and to declare a dividend
thereon. All Of which is held To bc TO
the general damage 10 the cOmpIainanfS /
and other policy holders Of the EQUITABLE
COMPANY The bill of complaint asserts /
that there has never been a determine /
1ion of the amount Of the surplus fund /
or surplus profits Of the Equitable