Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-06-20
STARTS A HoUsEcLEANING.
New Chairman of Equitable Begins
Duties BY Ordering Thorough In


Duties BY Ordering Thorough In
vestisation.
New York. June 20.--A new and inn
portant investigation of the affairs OF
the Equitable Life Assurance Society
is to be begun at once Paul Morton,
the newly elected chairman Of the
board of directors, wants to know
exactly how things are with the society
and has commissioned Price, Water
house & CO.. and Haskins & Sells,
chartered accountants, working to-
gether to examine every detail of the
work, investments and relations of the
society.
The letter sent by Mr.. Morton to the
firms employed as follows:
Dear Sirs: AS chairman Of the board
of the Equitable Life Assurance So
ciety, want to know the exact condi
ton of the society on June 10. 1905, the
date of my election as chairman. With
that end in view. you will please make
Jointly an examination of the accounts
of the society. You will have access
to all books, papers and records.
desire that your report should be
as complete and exhaustive as pos
sible Particular attention should be
paid to ascertaining the facts upon
these subjects:
First--The society's annual expens-
es, including legal expenses, advertis-
ing expenses, agency expenses and
cost of securing business.
Second-The real estate investments
of the company including the price of
each particular parcel, and the value
at which it is carried upon the books
of the society; the income which 1T
yields, and the fair valuation of the
property, whether above or below the
value at which it is carried upon the
books of the society. OF necessary
real estate experts may be employed in
ascertaining the value and income of
the real estate, subject, of course, to
my approval, as to men and terms.)
Third-The other investments of the
society; their character and the cir
cumstances under which they have
been made.
How Surplus is Carried.
Fourth-The society's surplus and
the manner in which it is carried upon
the books Of the society.
Fifth--The methods of keeping the
society's accounts, and the respects in
which it's accounting may be improved.
Sixth-The relations between the
society and the trust companies, banks,
safe deposit companies and other insti-
tutions with which the society is af-
filiated by ownership Of considerable
amounts of stock or otherwise. Gin the
case Of every corporation in which the
society has a dominant or important
interest, or with which the society has
special relations, the ownership of
stock other than that owned by the
society should be ascertained so far as
practicable.G
Seventh-The subjects covered by
the report of the investigating COM
mittee, of which Mr.. F'rick was chair
man, should be fully Investigated.
Eighth-When the report of the New
York superintendent of insurance has
been made that report should be care
fully studied and every matter covered
by it or by the recommendations of
the commissioners should be carefully
examined.
Scope is Not Limited.
The foregoing suggestions are not
intended to limit the scope of your in
quiries, which should be as broad as
may be necessary in order to ascertain
the precise condition of the affairs of
the society. I shall from time to time
designate other subjects which seem
to call for special investigation.
1t is important for all concerned that
your investigation should be complet-
ed as promptly as possible and you will
accordingly inaugurate it at once and
carry it forward with all possible vigor.
suggest that each one of your firms
place in general charge of this work
one particular man with whomI may
confer from time to time.
1t is essential that the entire matter
should be treated confidentially, and l
wish to confer with you as to when you
shall begin this work, and how you
shall proceed. Very truly yours,
PAUL MORTON.