New-York tribune., 1905-06-04

~, the total number of deferred dividend & pSG,d ind
and which becomes a dile0t
The Soliciting agents Of these 9iHend policies
habituay that the suPerpbF pc tb fact that the
of policy is demonstrated oE tn prefeTenee to the
nIbiic invariably selects 1t IN Pie1ei
annual dividend policy .,rt # is Of some in
AS 1earg KgoS1 U that the Equitable society allows 3
its agents commissions and dividend policies
While it allows them but . per cent o." ''iii''"'
Eo al of the foregoing have the m tib
from the true principles Of life nsuranfe og d the
ordinati4g efo0 nrsanE the effects of this Dy de-
erring the payments Of diyidenas the other weak
nesses spoken of this report come as an al,Us stu
mater r6 Of GSurse rs the h Of funds There
chafng under the laws which govern the amVtSr @
ma with other nstitutons with the idea OF ylfd
ing to the society results Wnf to insurance COM
nnnfns systematic but uninterestng piodaine S ~
The final results of this have not been
to endanger the financial integrity OIL OF r md have
impaired its Independence
IDEA OF Personal GAIN.
The rush for business has magnlhed tn',ie ire I'M,
portance OF the agent until we ma nirl ser non
place in councils of the SocetS S+escue nee in
ter3plated in its inception and almost Gro'eS4ue III
lis 6 Enera pdcy Of the society having been
diverted from its course, 1t IS naroS Ro.t it,
W9n9gre1 arson1eI ao sort of moral obliQueness.a
condition where personal gain seems 70 has m led Your
commfee to find that the societys m boe
VIII wl,n G'tb tbaT nTofts fa into the hands OF tnose
closely connected with the society ; me society
it 1t Is TINS Win MhG undoubted sincerity that they saw
actions in which the society pla!ed an my
part ,o,,,-,ittaa has in this report freely
itieed the management of the soclety, IL ian in
20 bere rciterate the statement OF lts lis ia 70
his n eiFsn!ar 3 s5@f tbaf P Whatever ay
may have existed in the s9clety s,,Iency as shown
impaired it's condition OF Pe'ieN'
in its annual report ,,r,,1,,rr
ALEXANDER LETTERS ON INV -ii1-
Under date of 90 1901 President ed xon watch
writes to MT MT j }bat r. it IS doing so We'll but must
nerform some coup and increase It's NercantiIe
P ike to buy couple of trust companeS ne a,t
double that m to enlarge banks the
i tni t og trust companies are not proper supjeo'
of concern da to Of Ig HlH s 1902 President Aexan%ef %
writes: LAS money, seVeiad oeni1a aI for a mod
stock cam can U of money we are jusr turning oyer d
mortgage of 100000 to the more funds and we
got some further sales of bonds on tbnt n1 Mill
i e doiiars of securities on August ana itb Kihn
we had better arrange III to HortheTn loan which
doesnt fail due until the 10th so as TO rhs eeI
ei the mention that insignificant 81 sum n sT
SSoa o00 is available. and the nope R to nroyide
certain loans VIII % % i9Ss the society had de
ru' os 'nominaiy subject to check the sum " V'
~ date of August 49, 1903 President Aiexande e
speaks Of the Iausua and then says: I'VE would be
hr,ne a good many such things WeIo,Iants WeIe ~ al
are SO stFaPPdd aPS a l9r this is Very annoying be:
cause # we had $5.O00GOo or $lOVO wv 10
20 J,onId make a great deal OF money ,ooo .,e 900
"" The Society had deposit August S g spSSs ok Of
the great possibilities of making mopeyd d at ieast ea
had available funds, the socie'y 'yditions 9dG would
SaIe been perfectly available but which tnr4ps t
alliances with other concerns was SO 'ieu "D
the nePe condons may help to explain the fact act
mnuitable Society realized next to the lowest aver t
age rate of interest in It's nVesed Sence YEAR
bonk while In the year 1903 it stood absoiu'ey tue
lowest the list.
LACK OF BUSINESS SYSTEM
In our opinion the society should place s oi
IN ip(,estor solely 1t should purchase no ponds Q,
stocks which reggrS OF Securities Where their
smbsequent sale could ever be unadvisa5it Ior any ~
other words it should be life insurance company
During its process OF that there does not
list in thc Office of the society a comprehensive
syste 1ei with the fpndemena error in the man,
ner in Witch the authority of the board is dsegatea
to s aTs, IacR Of that system by which responsible
y fixed at its Toss psee those of another
IN smch way that neither one can be held TO per-
ieTS Tbe records OF some departments are not kept
in as complete manner as the lNpoi 'aiio' -
tho transactions demand .+, q, ora
The records of expenses DO not bf rfnsTe T divided
i1tifs Between various departments 81, sircsro
IN Giving the society their best indivduaI eHoa.s
but there is that unison CT direetlI3n I3 Among
~, ranuired for satisfactory hnai results
We deem it essential that there be genera dv re-
asus+nent through which the authority ana outy
aeJ General officer be definitely fixed. ana
| tbroueh which the societys records shall oecoine
consisant and readily available for reference
EXCESSIVE CASH BALANCES.
1,o cash balances OF the Equitable society lying
a., IS,ttaS States and Canadian banks ana trus
III - of each from 10 lS0i