The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-08-26
EQUITABLE ADMITS;
ASKS INQUIRY
Company Joins the State in Ask
ing a Full Judicial
Investigation.

New York, Aug. 26.-The Equitable
Llfe Assurance society joined with the
state OF New York in asking for full
investigator Of it's directors and off.
GERS ard their alleged wrongdoings. The
document which announced this deter
mlnatlon was the answer Of the forty
nine Equitable directors to charges
made against them in connection with
SUIT brought against the Equitable Life
Assurance society by the state.
Admission is made that some officers
OF the Equitable have been guilty of
improper and illegal acts. They admit
the $25O,OOO loan to the Depew
improvement company. They admit
the $6S4,000 loan Of the Mercantile
Trust company, but deny responsibility
In this loan SO far as the board of d.
rectors IS concerned, and name Messrs
persons having the most intimate
/ knowledge Of these transactions.
The charge that excessive salaries
were paid to officers Of the Equitable is
! not directly answered, but admission is
made that, under guise of salaries, ex-
eessive fees were given to certain
Equitable officers who were also direct
ors IN other companies.
AS to excessive and unwarranted
loans to agents, the reply admits that
| Their admit that the officers who per-
mltted wasteful, improvident and i'm
| proper advances of money to agents
may have been guilty Of grave errors
| Of judgment.
The consolidation Of the Western Ma
tional Bank Of New York city with the
| National Bank Of the United States Of
New York by which a money loss re-
suited to the Equitable society and
| profit to some Of its directors, is also
| admitted
The table of alleged improper salaries
| to Equitable officers, which was en-
bodied IN the states charges, is de-
clared to be true statement of the fig
ures. A direct admission is then made
| that these sums were paid without suf-
| ficlent vouchers or audit, BUT the di-
rectors say their opinion is reserved as
to whether "such sums were large and
in all eases unwarrarted.'
Admissions of greater latitude, how
ever, are made on the subject Of PEN
sions and to the charges that money I'M
der the guise Of fees was received by
directors and stockholders who were
simultaneously officers Of the Equita-
BILE and other corporations. After adj
hitting that these moneys were received
| as charged the reply states:
| Many OF these defendants were ig-
norant Of said transactions, which were
not of a character necessarily known to
the whole board of directors
Further on the reply states:
"Some of said pensions were found
to be. Unsuitable, others excessive and
some improper.'
| The directors announce that an exam
nation of all facts in connection with
the Depew Improvement company is
| now being prosecuted, with view to
recovering any sums that may be found
due,
Charges of the existence of excessive
deposits in the National Bank of Com
MERGE Of New York, the Mercantile
Trust company of New York, the Com
| mercial Trust company of Philadelphia,
! and at least nineteen other banks, are
| admitted, but this admission is restrict
| ed to those directors and officers who
| actually had charge of or knowledge Of
| these transactions.
Restricted admission. is made concern
| ing the officers of the American Deposit
& Loan company, corporation which
| is admitted to have been organized for
| lending money to policyholders upon
policies held in the Equitable, and used
| to the profit Of directors and others in
the Equitable.
The $4,000 600 surplus held by the
| Equitable is the final item considered
| by the directors, and in substance their
reply on this subject is that they do not
know precisely what their rights are re-
garding the surplus and that they are
| willing to leave this matter for the
courts to decide.
In conclusion the, answer says:
"Whereforer this defendant joins in
the prayer Of the plaintiff in this ac-
| ton, and thereon submits it's rights and
interests in the matter in question to.
| the Judgment Of the court. -