The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-06

we can approach Mr.. Choate IN lhe matter
Let Us have a real polloyholders committee,
not under the control Of any clique.
A, II. WILLIAMS
Urea. " Y. April 4
To THE EDITOR or tbs Sun Sir: IL is
a splendid suggestion OF yours that the Hon.
Joseph Hodges Choate should be called In 10
represent the OOo. 900 pOllcyholders Of the
Equita bic Life. IL Is quite apparent that un-
necessary alarm il likely TO be caused by
the accusations against each other made
by Mr.. Hyde and his adherents. and Mr..
Alexander and his ndherents. touching un-
lawful disposition OF the funds Of this COM
pany. In reality the main question and the
one In which policyholders are interested
lies back Of this. and II is clear that an eKami-
nation conducted by the Superintendent OF
Insurance, who has allowed these transactions
to occur without protest. or even the mu-
tualization proclaimed as a remedy. will not
reach tho seat OF the disease
This company was organized upon the
distinct basis that It's stockholders should be
content with per cent. on a capital OF NO0,-
ooo and that all other profits should be eQui-
taoly divided among the policyholders. The
charter provision required such distribution
TO be made every i've years. Then q statute
was passed IN 1855, modified IN 1870, permit
TO be ascertained annually or at longer periods
and applied at the end Of the policy year
Since 1870 the company has done an immense
tontlne business This separates the policy
holders into particular classes, and By the
terms Of the contract each policyholder Is
only entitled to a share 10 the profits Of that
class. over 90 per cent Of the business Of the
Equitable was done on this basis There
are great many such classes, and the prao-
uce OF the company Is, as each policy natures
which 10 entitled to participate. TO assign
10 that policy definite sum as a share Of the
assets. II this be less than the actual amount
due, or n the contingencies for which the
balance OF the assets have been reserved do
not occur. there would be left With the COM
pany. belon sing to this class. a large sum Of
money. 20 which none Of the other policy
holders has any claim or share whatever.
This sum now exceeds $50, OoO, 900. and II
Mr. Hyde should as ne Is entitled to do un-
der the statute, give notice to the Superin-
tendent OF the company's intention 20 cease
doing business. every dollar OF obligations
now outstanding can be paid on, and there
would be left q sum exceeding 500. 200, 900,
with no other possible legal claimant than the
stockholders, and a suit In equity would be
necessary In behalf OF the whole mass OF
policyholdcrs 10 divest him OF the legal title,
az having been acquired In violation Of the
charter, and distribute the same a. near az
could be among those to whom IL originally
should have been awarded. This will re-
qulre the adjustment OF the rights Of ell the
maturing policyholders and their heirs that
have been In the company since 1870.
Such a suit Is worthy OF the Hon. Joseph
II. Choate. and its successful conduct ought
TO satisfy the ambition Of any lawyer The
facts upon which IL is to be based must be
obtained on EXAMINATION, TO be made by in
surance experts OF some department not re-
sponsible for allowing such a state Of things to
exist An examination by the Superintendent
Of Insurance OF New York Is an Insult to the
Intelligence Of every person who demands
for these pollcyholders fair play sug-
gest the Superintendent OF Massachusetts
rs one most Independent and able to make
the examination.
There is mans work to be done in this
m after TO protect these policyholders, and
THE SUN can, and hope will. do It or cause
Il 10 be done. RAPHAEL J MOSES
NEw YoRK. April g.