New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-27
PLANS FOR RECEIVERS.
". N. CROMWELL At WORK.
Interstate Reoeirership for Equi-
table on Foot, Says Report

The beginning OF a suit in equity by Alexander
s. Bacon in behalf Of Rowland D. Buford; the
persistent rumor Of a movement looking TO an
interstate receivership: Daniel lie Roy Dresser's
action against the Mercantile Trust Company.
subsidiary corporation-these we're among de-
yelopments yesterday in the Equitable affair
Attorney General Mayer sent reply 10 Sen
ator Bracket last night permitting him to bring
action against the Equitable sufficient 10 show
the alleged rnalfeasance Of officers This viii
mean. IL was generally agreed last night,
public investigation Of The socety's affairs and
the letting loose Of food n light on the rela-
tons between Mr.. Hyde's underwriting syndicate
and The society. What Mr. Tricks committee is
doing under cover viii be done by Senator
Bracket in his Young suit in open court, and IL
was asserted that the developments would prove
interesting 10 the superlauye degree.
Wall Street heard report that new move
has been made within the last week TO settle
the Equitable fight. The movement for the ap-
pointment Of receivers in various States would
be extended. and finally separate actions for re-
ceivers In the different States would be coalesced
into one general receivership of the Equitable
which would take both Alexander and Hyde out
Of the situation. said the report
Representative Of Sullivan & Cromwell had
approached large policyholders all over the coun-
Try 10 enlist their sympathy in this movement.
declared the report. There is no legal provision.
II Was pointed out by lawyers, for national
premiership. but if actions We're brought in
separate States or United States court districts
the judge would probably follow the usual pro-
cedure Of naming the receiver appointed by the
court n whose jurisdiction are the offices of the
concern as receiver in the separate actions. so
that in effect there would be one general re-
oeVer. The receiver would take hold Of the
affairs 81 the Equitable under orders Of the
court and President Alexander and Mr.. Hyde,
the controlling stakeholder would have 10 step
aside till the receivership had been dissolved
Sullivan e. Cromwell were doing this in the
interests Of certain influential men who are now
trying 10 unravel the Equitable tangle, and have
decided that both sides in the fight viii persist
an their attacks on each other. 20 the detriment
of the business Of the society and that the best
thing IS 10 contrive that neither can gain any
thing by repeated attacks. -Four separate suits
for receivers have already been started in va
rioua States, and it was rumored that another
will soon be begun in New-Jersey
No confirmation Of the report could be OBJ
rained. Representatives Of the Alexander party
denied any knowledge Of such plan. William
Nelson Cromwell, who was said 10 be actively
engaged in the movement. declined either 10
deny or affirm the report. Mr.. Cromwell sent
out the brief answer 10 inquiries that he begged
10 be excused from discussing the affairs of the
Equitable Life" No member Of the firm would
add TO the statement
Copies Of the summons and complaint were
served on Mr. Alexander, Mr. Hyde and George
7. Wilson yesterday in the suit of Mr. Buford
who charges that the surplus has been wrong
fully accumulated for private gains The COM
plant continues. in part:
The administration Of the officers and di-
rectors Of said society has been, and is. eX-
travagsnt. Wasteful and vicious. the president
annum salaries for which they give no ade-
ouate return: enormous affOruevs' fees and
miscellaneous disbursements covers for
illegitimate and illegal expenditures for dinners
and travelling expenses Of directors. and for
lobbying charges and political expenses whereby
the campaign expenses OF members Of the legis-
lature are paid indirectly through munifcent
expenditures TO political leaders and COM
lalttees; enormous sums Of money taken from
the said surplus are deposited in banks and
trust companies controlled by said directors.
Ano thus Indirectly, used 10 float underwriting
schemes IN which said directors are personally
interested, and obtain enormous profits and in
yestments therefrom are made in Violation Of
law, public policy and good morals TO the en-
g1chment OF directors personally
The motion on James H. Hydes application to
amend his intervention 10 Franklin B. Lords in
sunction suit win be argued before Justice Mad
doX in Brooklyn this morning. The application
was granted yesterday. Adherents Of Mr.. HYDE
pooh-pooh the possibility Of a general receiver
ship. and similar sentiment seems to prevail
among members Of the polcyholders' COM
mittee
It is not easy to obtain receiver for a com
psny that is solvent, against whose board OF
directors there are no charges" said one of the
lawyers. The stability and great wealth OF the
company are beyond question. We are not con-
cerned at the report"
The Prick committee spent an active day slit
ang and tabulating various items Of informa-
Ron. q large stan OF clerks beiu In.
work.
No call has been sent out for the next direc-
fors' meeting. According 10 yesterdays indica-
Mons, the directors viii not assemble until the
Regular quarterly meeting
Superintendent Hendricks Of the State InsuP-
Ance Department left town in the morning.