Omaha daily bee., 1905-07-28
RECEIVER FOR EQUITABLE
Suit Filed in Behalf Of PolioyhOldsrs for
an Accounting.
ALLEGES SOCIETY IS lNsoLVtNT
Petition Asks that All Funds, Assets
and Property BE Placed in
Hands of RE-
ceivers.

and Property BE Placed in
Hands of RE-
ceivers.
NEW YORK, July 27-In the form of an
amended complaint to a bill filed last April
suit was begun today in the United States
! circuit court for the southern New York
district to throw the entire $42. 900 of the
] assets of the Equitable Life Assurance So
| ciety into the hands of receivers who shall
take possession of all the funds, assets
and property held by the defendant So
! ciety of every character and description
and administer the same as they may be
! directed by the court"
More than forty policy holders in the
Equitable, representing dozen different
states are included as complainants in the
present suit, which is based in part upon
| the allegation that the society has no fund
with which to meet its enormous losses
and is insolvent.
With j. Wilcox Brown of Maryland, the
holder OF a $4,000 policy, complainant,
papers were filed last April to compel a
distribution of the $s4QpO,oOO surplus fund
/ of the society, to compel the management
/ to make an accounting to the policy hold
| ers, and for the appointment Of receivers
for the surplus fund, pending judicial as
certainment Of the rights of the policy
! holders thereto.
Since the filing Of that bill permission
was obtained to file an amended complaint
| Since the original bill was filed forty-four
other policy holders have intervened in
4 the suit.
Thomas j. Barry. a lawyer OF Boston,
has also filed intervening petitions in be-
half of Benjamin Dellheim for $1,000 and
Julian B. Hart $4,000 both of Boston.
Bill Makes Sweeping Charges.
In the amended bill. which is far more
sweeping in it's charges and in its appeal
for relief than was the original bill of last
April, there are incorporated many cita-
tions from the Frick and Hendricks re-
ports published some months later
Reciting the purchase of the Hyde stock
| by Thomas F. Ryan, the complaint then
denies the legality of the election of di-
rectors who are not stockholders Of the So
ciety. The complaint goes on;
The assurance funds held by the society
have been, fraudulently and neglecttully
and are being wasted and mismanaged and
lost to the extent OF many millions OF DOL
lars; IT is without legally chesen en- poaIu 1,1Ir,
erty held by II is unknown ana speculative
Reverting to a statement that the defend
ant society has wilfully and neglectfully
and fraudulently mismanaged, and through
it's officers and agents msappropriated the
said assurance funds" the complaint as
serts that "the said defendant is wholly
unable to repay the amount of such wasted
and misappropriated moneys to said fund
for the benefit OF your annuitants. and
your orator AYERS that the said defendant
is wholly insoIvent in consequence thereof.
It is further added that:
The property of the defendants is now in
the hands, or under the control OF policy
holders whose representatives have been
guilty of misappropriation, waste and fraud
in the management of It's af1airs ana prop
erty The business and affairs Of the so
insurer is destroyed; whatever business II
may do will be at an enormous loss and
| sacrifice on the part of the present policy
holders Their supreme interest is to place
the assets in the hands of competent re-
ceivers, appointed by this court and to
gradually, prudently and economically wind
up the affairs OF the company. In this way
be protected from eventual and irretriev-
able loss.
Considering Pension Question.
The directors of the Equitable held two
meetings today, covering period of three
hours The first was an adjourned session
from yesterday and the business transacted
included the election of George F. Victor
Of this city and Ernest B. Kruttschnitt Of
Now Orleans to the board. The directors
listened to the reading of the minutes of
, the meetings of the society for some six
months back so as to familiarize themselves
with recent conditions. The office of chair
man was abolished, as previously an
nounced.
J The committee on pensions reported and
, in almost every instance its recommended
tions we're adopted. A number of pensions
will be discontinued entirely and others
reduced to so per cent of salaries received
by officials or employees at the time of the
! severance of their connections. 1t devel-
: oped today that in addition to the pension
+ of $4,000 year to the widow of Henry b.
! Hyde there was voted at the same time
pension of $4,000 to Mrs. James w Alex
I ander, the wife of the former president to
5 take effect on the death of Mr.. Alexander.
These two items have been regarded as
: legal liabilities. or annuities, in lieu Of
certain contracts waived by the founder
of the society and by Mr. Alexander. The
D matter will be submitted to the Equitable
t special counsel. Austen q. Fox and Wal
lace s. Mcfarland. James II. Hyde was
. not present at today's meeting.
5 Equitable Business increases.
! The Equitable Life Assurance society s
income for the first six months of 1905 was
SSs, ,7s9, 1873. an increase of S2,Ss6.slO over the
corresponding six months of last year, ac-
cording to a statement which was submit
= ted to the board of directors yesterday. The
figures, which were made up from the aud
itor's regular report for the president to
submit TO the board, give assets on De-
cember 81 1904, of l8,953,O2O and assets
June 80, 1906 of s421, ,S4s, 272 an increase dur
g ing the last month of H296,252. The in
j. come for the first six months of 1904 was
:. $50, ,El2 327, while the income for the first six
q ! months OF 1906 was SSs 799, ,l3S, an increase
d of 81. $50. s11.
n Charges Against Mutual Reserve.
= ALBANY, N. Y, July H.-COncealment OF
= Judgments against the company amounting
to SIS, ,767, exaggeration of its surplus by
:. over $4,000 and a fixed policy Of delay in
e settling claims, some OF the charges
r made against the Mutual Reserve Life In,
s. surance company by Chief Examiner Van
n derpool in his report submitted TO State
n Superintendent Of Insurance Hendricks and
e today made public by him.
The examination was begun last Decem.
! Der and covers period back to 1899. The
hos baadnuarfara In Nauy Worl