The Montgomery advertiser., 1905-04-15
FAILED TO DISTRIBUTE
NEW CHARGE AGAINST EQUITABLE
 COMPANY.
Policy Holders Assert That Surplus Has Not Been Properly Handled Fly Those Who Had the Matt
 ter in Charge.

New York, April 14.-Complaint was made to Justice Blanchard in the New York State supreme court today that the Equitable Life Assurance Society has failed to distribute its surplus as provided by It's charter, that the sur plus has been improperly used and that the mutulaization of the company under the plan adopted by the direc- tors will do injustice to the policy holders. The court was asked to issue an order restraining State Superinten- dent of Insurance Hendricks from taking further proceedings toward the mutulization of the society.
 The actiCn was taken by A. E. Woodruff of this city in behalf of Herbert G. Full of Philadelphia, and other policy holders in the Equitable Society and is incidental, MT. Wood ruff said, to suit against the so- ciety to determine whether or not the policy holders have any right to the society's surplus and to determine the market value of the stock. Superin- tendcnt Hendricks was asked in the complaint to show cause on April 8, why he should not be stayed from all further action towards mutualizing the society
 The complaint of MT. Woodruff said is that naturalization plan means insurance at cost and after deducting the expenses of conducting the business, all the profits and as- sets of the company belong to the insured. The principle of mu- tual insurance upon which this defen- dant company has been organized and been reported to be conducted required that policy holders have a return of their overpayments in the surplus of a company at such short intervals as will incur forfeiture or confiscation to the least number. The society has failed to carry out the principle upon which it was organized and the plain- tiffs are of the opinion that the pro- posed amended charter will do an in- justice to the policy holders.
 It Is also alleged in the complaint that the reasons for the society's fail ure to carry out the provisions of it's charter in respect to the distribution of its surplus Is that a very large sur plus has been accumulated. 1t ayers that because of the ability of the of fcers to manipulate and use the same for their own personal interest. an idea arose in the minds of some of the stockholders that they had some rlght or ownership in the surplus which was without foundation. By reason of this unfounded idea the company has per mitted Its surplus to be diverted from its true intent and purpose and has permitted it to be used by some of the officers or by others in a way entirely foreign to its proper use.
 MT. Woodruff said that the policy holders had endeavored to obtain a hearing of their side of the case from the State Superintendent of Insurance but that he had refused to grant their request
 Justice Blanchard. being a policy holder in the Equitable Society. de- clined to entertain the application of Lawyer Woodruff and referred the matter to Justice Scott. who issued m order to Superintendent Hendricks to show cause on April IS, why he should not be enjoined from aiding in the mu- tualization of the Equitable Society.
 Henry c. Prick, Chairman of the Committee conducting the investigl- tion into the affairs of the Equitable Society, has elected as his principal assistant F. w. Haskell, President of the Carborundum Company of Mia gara Falls, N. Y. He is we'll known as an auditor and mathematician.