New-York tribune., 1905-04-25
FOR EQUITABLE RECEIVER
4 POLICYHOLDER SUIT.
Asks for Injunction PreUenting Fur
ther Holding of Big Surplus.


In a suit begun yesterday in the United States
Circuit Court ]. Wilcox Brown policyhOlder in
the Equitable Life Assurance Society," asks for
receiver for the surplus Of the society. pending
decision by the court to the rights of the COM
plainant anS other polcyhOders in this surplus.
He alleges that the stockholders piling
vast surplus in defiance Of the law and their con-
tracts with policyholders. which surplus they
using for their ends He asks for an injunc-
ton preventing the society from further holding
this surplus the detriment the policyholders.
similar action probably will be brought into
the Supreme Court to-day by Colonel Alexander s.
Bacon in behalf of an old policyholder Of the
Equitable. Colonel Bacon will ask for an adjuii
cation of the rights Of the policyholders in the
surplus. and will demand that this surplus be dis
tributed among the policyholders according TO the
contracts their policies contain.
The bill filed yesterday by Dos Passos Brothers,
Battle Marshall and Joseph Def. Junkin for
Mr.. Brown shows that he has held a policy for
$25,000 in the Equitable since 1857 The share
of the surplus which be apportiOned to
him he decided to have applied to his premiums.
At first his dividends were large but subsequently.
the bill declares. they became less. The ofhcers
of the society. he alleges. have not appOrtioned
to his policy its share Of the surplus
Mr.. Brown declares that the administration OF
the society has been corrupt and not in accord
ance with the laws the charter of the society.
Many Of the officers. he says. interested IN
banks, trust companies, FIRE insurance companies
and other corporations with which the Equitable
does business, that they acquire profits from
these concerns TO the detriment OF the society.
He estimates his own pecunary damage at 5000.
In digest explanatory of the suit the plaintiffs
attorneys say
We have advised Mr.. Brown that he and all other
policyholeers have just and clear right to this
equitable shares in the surplus have been with
drawn from that share not for legitimate insurance
IN q RTeat fund be16nd snv " nnssi5Ie neads of the
10 which
could subsequently lay claim The claim has
out Of ali past precedents in which the company
has figured as honestly aGcumniatng its surplus for
The present situation is further differentiated
have been further object Of this accumulation in
the holding of this great fund by the stockholders
speculation schemes in which they were personally
the oficers of the society that immemoriaI prece-
dent has established his right to have an interest
society 's''s' O"'s' 's'u'''eS SO'u 70 'ne
The various plans of naturalization. involving
condoration Of these unlawful acts, are not salts
factory to the poIicyholders whom we represent.
This action is in line with the investigation which
are instructed to conduct To these poicyhold-
ers It has not seemed that an investigation either
rectors of the company or by the agents of the
t 10npaHy %ouid enect e{ tne purposes required by
GERS and stockholders have just asserted two or
interests Of the policyhoders. The poiicyholders
believe that the investigation should be conducted
dealing with trustees with the interests of the
with the mmen mortal custom that permits these
trustees personally TO make profit from the admin
istratfon Of their trust.
The Equitable's officers will have twenty days
in which to file answer or a demurrer
The Tull action, brought by A. Edward Wood
ruff, came up before Justice MacLean in the
Supreme Court yesterday. William 3. Horn
blower. who represented the Equitable inter
posed preliminary objection to the granting OF
the motion for which Mr.. Woodruff asked He
said the amended charter had practically been
adopted
Mr. Woodruff said the amended charter for the
policyhOlders a OF Jacobs birthright
would be far better 10 have tb u EpI,ssf AL
solved, he said than to adopt the amended charter
for if the society were dissolved the receiver prob
ably would see that the pollcyhoders got their
Justice MacLean gave the lawyers until May
The Alexander lawyers did not appear before Jus.
the petition filed by Samuel Untermyer in behalf
OF o. Mr.. Hyde the majority st0ckholder: Mr.;
notification had been served on him, but his petit
ton had been returned to him with certain pass
encouragement Of the intention Of MI Hornblower
records. He said that he intended to apply for an
amended petition.
Justice Maddox is not likely to render any de-
cision in the Lord action for two or three weeks.
according to the opinions OF lawyers interested in
the Equitable dispute When he does hand down
ar an opinion they think It will undoubtedly md gran:
ground that no formal meeting Of the stockRnlders
held decide whether there should be
been different. since the majority of the stock
would have voted for naturalization formal meet
ing necessary under the bylaws of the
society and would have conserved the property
rights OF the minor stockholders, these lawyers
say.
The executive committee met yesterday, but
transacted only routine business far could
be learned. The recent conference Of agents in
this city and the resolutions they passed likely
interfere with district conventions which the
officers OF the society had planned for this spring.
These meetings were to be held in Denver, San
Francisco. Chicago. Portland, Me, Richmond
Va, and this and other large cities Mr.. Tarbell
arranging them Mr.. Hyde had advocated
large congress to be held here. but Mr.. Tarbel OBJ
tected TO that plan.
Philadelphia. April 24-Joseph De F Junkin. of
this city who Of the attorneys in the suit IN
stituted in New-YOrk to-day asking for a receiver
for the Equitable Life Assurance Society said to-
night that he represents number OF Philadelphians
who are heavy policyholders in the Equitable, He
said that intCrventons would be filed in New-York
tomorrow by several hundred other policyhoders
who reside in this city. Their names. he added
will be made public at the time of the hnR of the
papers.
TATnnDuET ND lTT TVV ANTnDu