The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-31
SUES EQUITABLE DIRECTORS.
ATTORNEY-GENERAL NAMES FOR
TY.NINE DEFENDANTS.
Mayer to Begin Suits To-day Calling On
Accused Onicers to Refund Fronts
tlniawfully Made Defendant Harri.

AccuS0O OmcerB 10 HeIunu rTOHts
Uniawfully Made Defendant Harri.
manIS Now on His Way to Japan.
Attorney General Mayer, having at last
decided to act against the directors Of the
old regime Of the Equitable Life Assurance
Society, IL to bring suits to-day against
these defendants
James w. Alexander, Louis Fitzgerald.
Chaunoey M. Depew. Henry c. Deming.
Cornelius N. Bliss, George H. Squire, Thomas
D. Jordan, Charles Stewart Smith. Valentine
P. Snyder, Alvin w. Krech, William Alex
ander, John j. McCook, James b. Forgan
c. Ledyard Blair, Brayton Ives. Melville
e. ingalls,, James H. Hyde. Alexander j.
Cassatt, Jacob H. schif, James j, Hill,
T. Jefferson Coolidge, Alfred @. Vanderbilt,
John Jacob Aston, William C. Van Horne.
Gage E. Tarbell, Marvin Hughitt, Charles
B. Alexander, Thomas De Witt Cuyler,
Marcellus Hartley Dodge. Jose F. De
Navarro, Bradish johnson. Joseph 7. Low,
John A. Stewart, Edward Fl. Hartman,
Levi P. Morton. August Belmont. Darius o.
Mills, Robert T. Lincoln, George j. Gould,
John Sloane, George T. Wilson, Thomas T.
Eckert, William H. Mcintyre, Henry NJ.
Alexander Henry c. Frick, Samuel NJ.
Inman, Henry G. Haarstick. David H.
Moffat and Henry r. Winthrop.
The complaint will demand that the de-
PENDANTS account to the State for their
official conduct, their management Of the
company and the disposition made OF its
funds and property committed to their
charge; that all the directors be COM
PEELED to pay to the Equitable society any
i'll, . boxy n h1,o ian
with the society and moneys which under
their management we're lost or wasted be-
cause Of neglect Of their duties az directors
or violation Of their trust; that all the
directors found to be guilty shall be re-
moved and that the moneys recovered In
the suits shall be credited to the policy
holders in equitable proportion.
Defendant Edward H. Hartman was
speeding yesterday In a swift SPECIAL train
out Of Utah for the Pacific Coast, where he
Is to take ship for Japan, to be absent for
six months.
The Attorney General has decided to
bring the suits for the reason that without
any statutes the courts have long enter
tanned actions to make directors or trustees
Of corporations account for waste, wrong
doing or neglect There is, however, a
specific provision Section 1851 in the Code
OF Civil Procedure which reads as follows:
Compelling the defendants to account
for their official conduct in the manage
ment, and disposition Of the funds and prop
erty committed to their charge
Compelling them to pay to the corpora
ton which they represent, or to its credi-
tors. any money, and the value Of any
property, which they have acquired to
themselves. or transferred to others. or
lost or wasted by violation Of their duties
.Removing a defendant from his Office,
upon proof or conviction Of misconduct.
and directing new election to be held by
the body or board duly authorized to hold
the same, in order to supply the vacancy
created by the removal; or where there is
no such body or board. or where all the
members thereof are removed, directing the
removal to be reported to the Governor,
who may, with the advice and consent Of
the Senate, fill the vacancies
The following statement which was
handed out, it was said, reflected the At
torney- Generals views:
1T will be noted that directors or officers
OF corporation can be compelled to account
for their official conduct, mana cement and
disposition of the funds and property COM
mitted to their charge. The article under
which this section Of the code is found ia
judicial supervision Of corporations and
Of the officers and members thereof 1t is
interesting that this important section has
been invoked only in comparatively unim-
nortant cases, and 80 far as search discloses
no case has ever been brought under this
specific section in the name Of the people
Of the State by the Attorney General.
aThe following section 17s2) provides
that an action may be brough under Sec
ton 1881 by the Attorney General in behalf
OF the people Of the State for the purposes
in Section 1881 provided. Section 1908
OF the code provides: Where the Attorney
General has good reason to believe that an
action can be maintained in behalf of the
people Of the State, &C.. he must bring an
action accordingly or apply to competent
case requires, if in his opinion the public in
terests require that an action should be
brought
sAn action for some OF the purposes pre-
scribed in Section 1881 can be brought
by any trustees, director, officer or creditor
Of a corporation. The theory Of the law
was that the Attorney General could also
bring such an action when some situation
was presented which was Of public interest
or concern. The present situation ia.
that an insurance company holding the
savings Of over half million people, a
considerable portion Of whom reside In
the State Of New York, is charged with
acknowledgement. and it seems proper
| that the directors and responsible officers
should be required to show in court the
manner in which they have discharged the
trust confided to them.
aThe action Is brought against all the
directors, who may be grouped in two Glasses
First, those who are said to have done
active, wrongful acts. These would COM
prise those who had actual knowledge OF
acts Of Encouragement. Among these
| are certain officers and members Of the two
active committees. to wit. the executive
and finance committees, which committees
It will be noted. had specific responsibilities
placed upon them by the bylaws.
.The second class OF directors are those
against whom no suggestion has been made
as to active wrongdoing In accepting
election as directors, however, they were
charged with the duty Of at least exer-
cising fair diligence and inquiry. II by
| non attendance or non-attention or blind
A-Il A.