The San Francisco call., 1905-08-01
F0RTY-N|NE EQUITABLE
OFFICERS ARE SUED

stockholders, which loan of s2500OO was
made upon grossly Inadequate security.
and. which property securing said loan
was appraised in 1901 by the insurance
department of the State of New York
at the sum OF S15O,00O.
DEPEw's BROKEN FAITH.
"That said Depew Improvement COM
pany subsequently became InsOlvent, and
the property which secured said loan was
bid in at foreclosure sale for about S5O,-
600. thereby resulting in a great waste
and loss of the property of the defendant
society.
That the referees deed for said prop
erty was not recorded by said defendant
society until about January Il. 1905. and
that in the meantime no proceedings
were taken TO collect the judgment for
the deficiency thereon, and the same has
ever since remained due and unpaid.
That said DeDeW and others OF the in
dividual defendants agreed with the de-
fendant society that they would save
said defendant society harmless from
loss by reason of said loan. II said So
ciety would refrain from recording said
deed and from enforcing said deficiency
judgment. That said society did so re-
frain. but said defendants have neglected
and refused to pay the amount 70 said
losses, said society had so suffered.
PENDANTS wastefully, improperly and
improvidently permitted the defendant
society for a number of years past to
keep during almost the whole of each
year excessive. unnecessary and I'M
warranted sums OF money on deposit
with the National Bank Of Commerce
New York; the Mercantile Trust Com
pany, New York; the Equitable Trust
COMPANY New York; the Commercial
Trust Company. Philadelphia, and at
least nineteen other banks and trust
companies, in some or all Of which the
individual defendants, or sets of them.
were stockholders, directors or officers.
which sums were deposited at made
quate rates OF interest. instead OF IN
vesting them in proper and more re-
munerative forms of investment. and
permitted said defendant society, reg
ularly, for a number of years past TO
conceal this fact and mislead and de-
ceiye the policy holders of the society
In respect thereto by annually, on De-
eember "a to -, IOaning approximately
s1O,OOO,OOO ON collateral security, which
I'm on January 3 or January 5 and the
funds redeposIted In the depOSitOrtes
from which they had been temporarily
withdrawn for this purpose"
After reciting that the society has at
the end of each year caused a balance
to be struck purporting to show the
net surplus earned during the preced-
ing year. the complaint declares that
the defendants have failed to divide
among the policy holders an equitable
share of the net surplus at the expira-
tion of each five years, as provided by
the society's charter The complaint
continues:
PLAINTIFF further alleges that the
rules and regulations adopted and here
tofore acted upon by the defendant So
cfety and it's officers, with the approval
and consent OF the society's directors.
for the ascertainment of the Equitable
share Of the surplus due to each poll
icy holder were and are incorrect, He
gal and improper and that. OF the sur
plus now held or purporting to be held
by the defendant society, as shown by
it's statements, sum approximating
$40, 900 is held by the society, IN
which said sum the present policy hold
ers in violation of the law and the
express terms of the charter, would
have no interest under said rules and
regulations.
That the defendant society and the
individual defen dants. as officers and uf-
rectors thereof. have held and reported
in the reports to the tax commissioners
of the city of New York that the entire
surplus belongs TO the policy holders.
THAT the present policy holders of the
defendant society are entitled to the
whole of the present net surplus or the
society, after deducting sufficient
amount to cover all outstanding risks
and other obligations, in accordance
with the charter. and are entitled to
have an equitable share Of said net
surplus credited TO or paid to or ap-
piled for the benefit of each policy
holder. in accordance with the charter
and with law"