New-York tribune., 1905-08-26
EQUITABLE ASKS RELIEF.
FJLES REPLY TO MAYER.
Society 44dmits- Charges Against
Directors and Officials.

o, New-Tork" To the surprise OF all
rernsd. the society, as now constituted. joins
With The State in it's prayer for relief The
stsrtling admission is made in the answer that
,srtain officials OF the Equitable have been
sulty Of improper and unlawful acts, both in
respect 70 matters specified in the complaint
and otherwise. The society. according TO it's
answer also joins with the State in asking that
1he courts pass upon the much involved ques-
sion of the society's enormous surplus
The answer VAS filed yesterday with Attorney
General Mayer. st his Office in Albany.
In all. thirteen charges are answered by the
directors They admit the S250.oo0 loan the
uepew Improvement Company. They ADMIT
the sSS5 600 loan OF the Mercantile Trust Com
many but waive responsibility in this loan so
far as the board OF directors is concerned. and
indicate Messrs. Alexander Jordan and Deming
as the persons having the most intimate knowl-
edge Of these transactions.
The charge that excessive salaries We're paid
10 officers OF the Equitable s not directly an
swe-ed but admission is made that, under guise
of salaries excessive fees were given to certain
EQUITABLE officials who were also directors in
other companies. In defence the answer states
that these practices we're not known TO the
whole hoard Of directors.
Outlining their belief as 10 the best policy to
pursue in fixing the blame for the Equitable
scandals the directors say, first. that the blame
for alleged cases Of misconduct will be found
TO rest on individual officers. and not the
directors as a body. Having made this
planation. the answer then admits in a general
way the wrongdoings charged.
NORTON VERIFIEs ANSWER.
The final paragraph Of the answer. which is
especially significant when it is understood that
Paul Morton, while not a defendant, verified it
as president. reads
IN respect many OF the matters and things
SCI forth in the complaint this defendant is i'm
perfectly informed though believing that many
OF the material allegations substantially
true and that by the negligent conduct and i'm
proper and unlawful acts OF some Of the defend
ants in the exercise OF their official duties, es-
pecialy Of some among those who formerly
were officers Of this society and active members
~ its important committees. both in respect to
The matters specified in the complaint and in
oiheT respects this defendant has been greatly
tamaged.
This dcfendan; is noN actively engaged in
kiG= a thorough investigation OF all said
.~g- of waste and miscopduct, with view
. II 'rcirg the rights Of the society agaipst
ID iu all persons liable TO account TO It by
-CCf Wherefore. this defendant joins
.- aver of the plaintiff IN this action. and
submits its rights and interests ~
f7-.---s il question TO the judgment of the
s-5e that premises in Broadway were
g. ,i.e4.uaie rental u the Mercantile Safe
npany Is admitted, but it IS denied
me this lease was made James H
a-'its W. .Alexander. "A iiliam Alexander,
=. --Grbell Valentine p. Snyder. Thomas
fo tt-,- Charles B. Alexander. Henry r.
o. Alvin ". Krech and William II. Nc
J. re- stockholders and directors in the
-4 safe Deposit Company.
.o-th allegation charges that lease was
ia October 1900, by the society with ~
f-.le safe Deposit Company. TO the great
. sl.ary disadvantage Of the society, giving
ig, res IL detail
me complaint shows. as Superintendent Hen
'ieks brought out in his report. that for nearly
.-leen years Of occupancy the safe deposit
c-pluy paid 10 the Equitable only $3463 40
than what paid for alterations and
Improvements TO the premises. Meantime the
company was paying large dividends to its
stockholders. among whom were James H.
Hyde. James ". Alexander William AleXan-
der. Gage z. Tarbell. Valentine P. Snyder,
Thomas D Jordan, Charles B. Alexander.
Henry r Winthrop, Alvin W. Krech and Will
lam H. Mcintyre officers and directors and
members Of committees OF the Equitable.
With certain reservations. admission is then
made that the capital stock of the Missouri Safe
Deposit Company was acquired by the Equi-
table society. which paid $3.50 share for shares
of a par value Of 500. The reservations IN
favor of the Equitable in connection with this
charge include assertion that these alleZa-
lions true in respect 10 certain of the EQui-
table officers, but that the alleged purchases
were never known to the whole board
The reply admits excessive and unwarranted
loans 10 agents The directors further admit
that the officers who permitted improper ad-
vances to agents may have been guilty Of grave
errors OF judgment, but assert that they have
no Information sufficient TO form a belief that
these officers knowingly guilty
Instances are cited in which the system Of
making advances TO agents is necessary and
proper. within reasonable limits. The consoli-
dation Of the Western National Bank of the
City Of New-York with the National Bank OF
the United States OF New-York by which the
Equitable society lost money and some of its
directors made profit. is also admitted. The
directors saw however that the responsibility
must be divided amcpg those individual de-
PENDANTS who directly participated in. had,
or by reason Of their official duties and position
should have had. knowledge OF the trans
actions
The table OF alleged improper salaries TO
Equitable officials which was embodied in the
states charges is declared to be a true state
ment = the figures. a direct admission is then
made that these sums were paid without suf-
hcient vouchers OF audit but the directors say
'neir opinion is reserved as TO whether such
sums were large. and In ali cases unwarranted"
admissions Of greater latitude however, are
mace on the subject Of pensions. and to the
charges that money. under the guise Of fees
was received by directors and stockholders who
"ene simultaneously officers of the Icouitab BILE
ana other corporations. After admitting that
'hese moneys were received as charged. the
reply states:
Many u these defendants wzre ignorart af
- - Hatlsactlons which were not of q charac-
6l-ac,cSss ovsssailly known 10 the whole board OF
uler on the reply states: some Of said
we're found 10 be JustIhable others ex-
.-. l,is li'I some improper" Denial Is made OF
my hHCNieoee or Information s,If,lcten, 20 Corr,
'-sL concerning the payment OF attorneys
rendered. P ''''ss 10 'he services
AparT,ro -.