The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-08
Visit Of Insurance Commissioner
Did Much Good !
EXHAUSTIVE REPORT COMING
Alexander and Hyde Both Admit That
the Enormous Surplus of the
Company Belongs to the
PolicyhoIders.

Washington, May 7.-(Special.)-Reau e.
Folk insurance commissioner Of Tennes-
see, passed through Washington this
morning en- route home from New York,
where last week he attended an important
conference participated in by several
state insurance. commissioners relative to
the affairs of the Equitable Life Insur-
ance company. Mr. Folk says the confer
ence Of the commissioners resulted in the
accomplishment of the purpose for which
ii was called, viz: definite agreement as
to when the public will receive the re-
port Of the investigation of the manage
ment of the Equitable now in progress.
This report is promised the state commits
soners by the middle of June.
Will Report Conditions.
81 feel sure" said Mr.. Folk, that it is
the purpose of Mr. Hendricks, the New
York state insurance commissioner, to
furnish In his report the condition OF
things as he finds them, no matter who
may be hurt. 1t is that policyholders have
the right to know and that is what
the insurance officers of the several
states have the right to expect on behalf
of their policyholders. If the report OF,
the investigation should not be satisfac-
tory then otner states will join In and
make an investigation.
mo question has been raised as to the
solvency of the society. Nobody doubts
that Therefore policyholders are safe so
far as the guarantees on their policies are
concerned. But I would not undertake to
say that policyholders will receive as
much as they are entitled to. That Is one
of the questions involved in the present
controversy. Any irregularity of manage
ment whereby inside syndcates profit
out of securities sold to the society," or
any extravaganza of management would
serve to reduce the dividend earning be-
longing to the policy holders.
Must Make Restitution.
II do not doubt as result of the pend
ing Investigation all such Objectionable
tksIfs6 wiz ee.s-e, aid that all Anslete
syndcates will be forced to make resti-
tuition to the society of profits made out
of securities sold to the society.
,As to the contest for control between
the Alexander and Hyde factions, no man
can evecast the outcome. That is
mat u largely with the courts. The
question has also been raised in the court
proceedings as to whether the surplus of
the society belongs to the policy hold
ers or to the stockholders. If ever any
fund rightfully and morally belonged to
anybody that surplus or eighty mllllons
belongs to the policyholders and have no
doubt that the courts will so hold
asked Mr. Alexander to whom the surplus
belonged He replied there was no ques
ton in his mind that 1t rightfully belong
ed to the policyholders. | asked the same
question of Mr.. Hyde. His answer was
that II was for the courts to decide. but
he had always supposed it belonged to the
policyholders.
Visit Did Much Good.
81 think" concluded Mr.. Folk that the
visit Of the state insurance commission
ers was timely and resulted in much
good Not only did we secure a definite
agreement for the report of the nvestiga
ticn. but we obtained authoritative infor-
nation first hand concerning the situation
and its latest developments which we can
give to the policyholders of our states
Ir addition to that our visit | believe had
the effect of impressng the officers of
the company with the fact that the in
surance commissioners of the country are
watching things and will leave nothing
undone to protect the polcyholders In
their respective jurisdictions"