The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-26

Of the answer admits the allegations in
paragraph 20 OF the complaint, that on
Jan. Z. 1902. the Equitable was the owner
Of q majority Of the shares Of stock in tbs
American Deposit and Loan Company,
which was organized to lend money TO
policyholders.
It admits that on that date the CAPITAL
Of the loan company was increased with
to take over 2. ss5 shares, but the Equitable
society actually took only COS shares and
the rest were bought in by the following
directors: James d. Hyde, SOS shares
James H. Hyde and w. H Nc ntyre trustees,
balance, SIS shares, were sold ' to directors ~
and members Of the executive committee
OF the society.
In admitting the allegations in para
graph 81 Of the complaint, Paragraph ID
q the answer excerpts 80 much OF it as
period mentioned in the complaint has
an equitable share OF the net sur
plus been credited or paid. or applied,
or p.rmitted to be applied for thu
portion thereof has BEEN so applied. It
also excerpts 30 much Of the paragraph Of
the complaint as alleges that the defendants
rules and regulations heretofore acted upon
in ascertaining such Equitable shares are
sum experimenting $40 600 600 is held by the
society, In which said sum the present
polioyholdes, in violation Of law and CON.
trary to the express terms Of the oharteri
would have no interest. s,....+- =.
present polioyholdsrs Of the descendant
society are entitled to the whole Of the net
surplus OF the society after deducting
sufficient amount to cover all outstanding
r1sks al. and other obligations, n sooordance
equitable share Of said net surplus credited
to. or paid TO-, or applied for the benefit Of
each policy,holder in accordance with the
charter and with law"
). The defendan +, alleges that whether
complaint. or any other sum or sums held
by the defendant are properly denon,-
mated surplus, and what the re-
spective interests Of the stockholders
ana PSo Pol S,,a;d therein, are, and
thereto. are all now subjects Of invesiga-
ton by the present officers, with the assist
ance OF counsel, and said questions are now
pending for adjudication before the Supreme
Court IN an action in which Frankli, B.
Lord is plaintiff.
srKNodRAPHIo AWARD EXPLANATION.
Senator Armstrong, chairman OF the
legislative COMMITTEES, gave an explanation
typewriting Of testimony in the coming
hearings had not been given to the Law
Reporting Company, whose bid was $40, 900
lower than what. 1t Is estimated, will be
paid to the States stenographers.
There will be many Important docu-
ments.' said Senator Armstrong, sub
mitted in the testimony the contents Of
which might be very valuable 10 certa in
persons IT ia not the intention OF this
committee to allow this information to be
paid for and received by these persons.
1T Is true that a stenographio concern
offered to do the work for so a day but
this Investigation Is Of such importance
that there must be no doubt Of the bsolute
loyalty Of our stenographers, and there
fore we obese men who are personally
known to us and in whom We have every
confidence"
The Senator was asked about the work Of
the committee, pending the first hearing
on Sept. Q.
while the committee has adjourned
until Sept. o, there viii be frequent consul
tations with counsel in the interval.
shave been asked to tell which insurance
company will be taken up first for investi-
CATION. It would be most unwise to d.
vulge our plans In. this respect, even II
We had come to q decision on the matter.
That Is tho very last thing that will Re
considered. The main thing to be de-
termined is tho scope Of the Investigation
and that will be our first concern