Los Angeles herald., 1905-08-26
EQUITABLE ASKS
FOR AN INQUIRY
JOINS STATE IN DEMANDING
INVESTIGATION
DIRECTORS ANSWER CHARGES
Admission ls Made That Management
Of Company Was Guilty Of
improper Acts, Including
Depew Affair
DIRECTORS ANSWER CHARGES
BY Associated Press.

NEW YORK, Aug. 25.-The Equit-
able Life Assurance society today
Joined with the state of New York in
asking for full investigation in court
of its directors and officers and their
alleged wrong doings in managing the
moneys Of the society. The document
which announced this determination
was the answer of the forty-nine
Equitable directors to the charges
against them by the state.
Admission is made that the Equi-
table has been guilty of improper acts
Among these answers they admit the
$G50,000 loan to the Depew Improve
ment company. They admit the $685.
900 loan of the Mercantile Trust COM
pany, but waive responsibility in this
loan so far as the board of directors
Alexander, Jordan and Deming as the
persons having the most intimate
knowledge Of these transactions.
The charge that excessive salaries
were paid to officers of the society is
not directly answered, but admission
excessive fees were given to certain
officials who were also directors in
other companies.
In defense the answer states that
these practices were not known to the
whole board Of directors.
Outlining their belief as to the best
policy to pursue in fixing the blame
for the scandals, the directors say first
that the blame for alleged cases of mis-
conduct will be found to rest on indi-
vidual officers and not upon the direc-
tors as body. Having made this ex-
PLANTATION the answer then admits in
a general way the wrong doing
charged.
The first charge specifically answered
is that premises on Broadway were
let at inadequate rentals to the Men
camille Safe Deposit company. This is
admitted. but it is denied that at the
time this lease was made James H.
Hyde, j. w. Alexander, Gage E. Tar
bell, v. p Snyder, Thomas D. Jordan,
Charles B. Alexander, H. r. Winthrop,
A. w. Krech and William H. McIn-
tyre were stockholders and directors
in the Mercantile company.
With certain reservations admission
is then made that the capital stock of
the Mercantile Safe Deposit company
was acquired by the Equitable, which
paid $3.50 a share for shares Of a par
value of $100.
Admit WastefuIness
The directors admit that the officers
who permitted wasteful, improvident
and improper advances of money to
agents may have been guilty of grave
errors of Judgment, but assert that
they have no information sufficient to
form belief that these officers were
knowingly guilty of such improper
acts.
The connection of the Western Ma
tional Bank Of New York City with
the United States National Bank by
which losses resulted to the Equitable
and profit to some of its directors is
also admitted. But the directors say
that the responsibility for these losses
must be divided among those who "di-
rectly participated in, or had, by rea-
son Of their official duties and position.
should have had, knowledge Of the
transactions"
The table of alleged improper sal
aries to Equitable officers. which was
embodied in the states charges. is
declared to be true statement of the
figures. A direct admission is then
made that these sums were paid with
out sufficient vouchers or audit, but
the directors say their opinion is re-
served as to whether such sums were
large and in all cases unwarranted.,
Admissions of greater latitude are
made on the subject of pensions and
to the charges that money under the
guise of fees was received by direc-
tors and stockholders who were also
officers of the Equitable and other cor
porations.