The Montgomery advertiser., 1905-04-22
GOV. HIGGINS
 APPEALED TO Equitable Crisis Presented
 to Him. SPEECH TO THE AGENTS Superintendent of Insurance
 Also Seen. Chief Executive Explains That the Ex- istine Differences in Company
 Must Be Settled by the
SPEECH TO THE AGENTS

New York, April 21.---The crisis in the affairs of the Equitable Life Assu- rance Society was laid before cover nor Higgins at the executive chamber this afternoon by the committee or thirty-five managing agents of the So- ciety which earlier In the day at Syra- cuss had made the same appeal for nut tualization of the society to Superin- tendent Hendricks of the State lnsu- rance Department. The views of the agents were presented to the Governor by Joseph Bowes, manager for the Equitable at Baltimore, as chief spokesman. The agents also present. ed to the Governor the resolutions adopted earlier in the week by the agents convention in New York city.
 Governor Higgins made very evil dent his appreciation of the great sc- riousness of the situation In the Equi- table Society. His reply to the speeches was greeted with applause.
 T realize fully" the Governor began, "that this Is very serious talk. realize fully that the policyholders Of this company have been Tod to believe that it was mutual in its character. l would be glad to do within reason what I could do to bring about md- tualization. But I desire to call your attention to the fact that difficulties that arise between citizens in the State of New York-very fortunately would say, rather than unfortunately-canno be settled by the Governor nor by the Legislature. Those questions of differ ence have to be settled in this State hy the courts
 Courts Proper Place.
 ''The plan of naturalization which .Na adopted. as I understand 1t, by the board of directors of the Equitable Life and placed in the hands of the Superintendent of Insurance--a gentle man fin whom have unlimited conh- dence as to capacity and integrity. A few days ago a suit was brought ques- tioning the right of the Superintcn- dent to mutualize this company, to de- prive the plainttR as a stakeholder of the power that hIs stock gave him and of the benefits which he claimed hat he might derive were naturalization not to take effect. That matter Is In the courts in my opinion In the place where 1t should be settled. and the only place where 1t can be settled as to the relative rights of the stockholder and the policyholder of the Equitable Life.
 '"rhe question has been raised as to whether the Legisla lure could not al- ter the chai ter of the Equitable Soci- ety, changing it's character. I think it Is perhaps true that 1t could. It coIld alter It's charter but the question re- mans as to whether the stockholders if they saw lt 10 reject the altered charter could mt refuse to act under it and in that case they would be com pelled to go into the hands of a re- ceiver or close up the business of the Equitable Life"
 POIicyhOlderS Alarmed.
 Mir. Bowes told the Governor that the committee represented managers and agents from all over the world, closer than any one else could be to the great hody of policyholders and he assured the governor that a condition of things existed in the society as q result of which "our policyholdcrs are in q state of ut most apprehension and alarm. which fl continued will result in not only disas- ter to the managers and agents, but what is of far more importance. the ulS timate damage of this great company and all that that means to hundreds oi thousands of policyholders throughout the world"
 MT Bowes declared that from it's in- ception by 'its great founder. Henry B. Hyde" the Equitable had been in tended to be truly mutual concern and that the agents had gone up and down the world proclaiming and lead ing policyholders to believe that the only part of the assets of the society that could be paid to stockholders was $7 900 per annum or seven per cent. in- terest npon the S100,000 of stock. Of the five or six hundred thousand policies issued by the society nearly 90 per cent contain a distinct and specific provis- ion that each shall be entitled to its full distributive share of the surpus at the ends of periods specified.
 During the administration of the at fairs of the society by the elder Alex ander and by the founder Henry E Hyde" declared MT. Bowes. faith to tho utmost was kept with policyhold- CTS. No question was ever raised about the ownership of the surplus.
 Evil Days.
 We have fallen on evil days in which claims arc being made and ques- lions are being raised which point to a reversal of the entire business methods of the society which cast distinct doubt upon the representations We have made to policyholders and which con stitute A menace of the most terrible character to the interest of all who hold contracts with the society.
 "It is manifest to us and the policy holders that the time has come for a change and such change as Will res cue If from being regarded as the put rimony of any individual or the instru- ment in the hands of one man. to tn- abIe him to promote selfish interests or subserve ends entirely foreign to the designs of the founder of the com pany. -
 ."Tbe policyholders are the real own ors of the assets of the company yet in the Equitable Company, with nearly 600 900 policyholders: with outstand- inc assurance of one billion five hun dred millions; with trust fund of four hundred and thirteen million dol lars: it's assets yearly increasing by thirty millions, the policyholders have no voice in the administration of the society.
 "rhe policyholders could see their interests made subservient to personal interests and speculative recklessness hut they were helpless in the hands of one man whose control of the stock was such that he could make and un- make directors by single entry in che stock transfer books |"
 Directors Not Qualified.
 MT. Bowes declared that although the charter requires that each director shall be the proprietor of at least five shares of its stock we are reliably sS-.a tbat ao or Al of tha nreSani