Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1905-04-27
RECEIVER is ASKED.
Demand for an Accounting and Dis
tribution of the Equitable Surplus
Will Be Pushed.


New York, April 27.-Receivership
proceedings We're instituted against the
Equitable Life Assurance society by j.
Wilcox Brown, of Maryland, a policy
holder. In the United States circuit
court he filed an action against the So
ciety. asking receiver of the surplus,
an accounting for the benefit of him
self and other policyholders, and en-
joining the society holding the surplus.
Brown alleges that the society's Of
ficials have disregarded their trust, and
have not paid his proportion of the net
surplus. His counsel have issued
statement saying that the huge surplus
of the society is not legally retained
from the policyholders nor lawfully
used by the society, and that the profit
due the policyholders, except the Z per
cent. dividends, is now attempted to be
swept aside by the stockholders claims.
Another Case in Court.
Two other phases of the Equitable
controversy We're in court.
Justice Mclean, in supreme court re-
served his decision in the case of Her.
bert c. Tull, poicyholder, who APP
piled for an injunction restraining the
society's officers from taking further
proceedings to obtain an amended
charter for the society. Mr.. Tull at
tackled the proposed charter as a
the stockholders
Counsel for Vice President Hyde, of
the society, and Franklin b. Lord. a
policyholder, appeared before Justice
Maddox. in the supreme court in
Brooklyn, to oppose petition by Pres
ident Alexander to strike out certain
references in which Mr.. Hyde inter
vened in Mr.. Lords injunction pro-
ceedings against the proposed mutual-
ization plan. There was no hearing,
however, as the court had not yet re-
ceived the Alexander petition.
Explanation of the Action.
Battle & Marshall, the attorneys for
ment today:
This is an ordinary policyholder's
suit. The plaintiff, j. Wilcox Brown,
a citizen of Maryland. consulted us last
autumn concerning his policy in the
Equitable society. He had policy for
$4,000, taken out tr 1867. changed as
to terms in 1872. He had elected to
have his share in the surplus of the
society applied in reduction of pre-
miums. In the earlier stages of his
connection with the society these re-
auctions had been very considerable,
but although the business of the society
enormously increased. there was no
material further reduction in premi-
ums. On application to the society
he had been told the usual story that
aii " ells was uue 10 lowering or
profits on investments, caused by the
fact that rates of interest in later days
We're much lower than in 1861
I'VE We're obliged to advise Mr.
Brown, when he first consulted us,
that we saw no basis for suit. There
was no proof then in our possession
that the portion of the surplus prop
erty applicable to diminishing his pre-
miums was misappropriated by the
society.
As to the Surplus.
Recent events have shown clearl,
that the huge surplus accumulated by
the society is not legally retained from
the policyholderS, nor lawfully used
by it. The old charter of the society,
providing that the company shall be
mutual company and that all of the
profits shall be apportioned equitably
among the poicyholders except divi-
dend of per cent. to the stockholders
is now attempted to be swept aside
by the present claims of the stockhold-
ers of the society.
We have therefore advised Mr..
Brown, in the light of these facts, that
he and all other policy holders have
a just and clear right to the fund.-.
Many Will Join in Suits.
Philadelphia. April 27.-Joseph De f.
Junkin, of this city, VINO Is one of the
attorneys i'm the suit instituted in New
York today asking for receiver for
the Equitable Life Assurance society,
said tonight that he represents a num-
Der of Philadelphians who are heavy
policyholders in the Equitable.
He said the interventions will be filed
i'll New York by several hundred 9TH
err poicyholders residing in this city.
Their names, he said. will be made pub
lie at the time of filings of the papers.