Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1905-08-31
ADMIT MANY THINGS
EQUITABLE Directors Ask that
BLAME Be PLACED.
Charges Of Excessive Fees, Inade-
quate Rentals, lmprOvtdenCe and
Other Forms OF riismanaaement
Acknowledged, but Claimed Full
Board Was Not Involved.

New York, Aug. 2S.-The Equitable
Life Assurance Society has joined with
the State of New York in asking for a
full investigation in court of its direc-
tors and officers and their alleged
wrong doings in managing the moneys
of the society. The document which
announced this determination was the
answer Of the forty five Equitable di.
rectors to the charges against them by
the state.
Admission is made that the Equita-
BILE had been guilty of improper acts.
Among these answers admit the $780,
900 loan of the Depew Improvement
Company. They admit the Smith
$685., 900 loan to the Mercantile Trust
Company, but waive responsibility in
this loan so far as the board of direct
ors is concerned, and indicate Messrs.
Alexander, Jordan and Deming as the
persons having the most intimate
knowledge of these transactions.
Admits Excessive Fees.
The charge that excessive salaries
were paid to officers of the society is
not directly answered, but admission
is made that under the gulse of salar-
les excessive fees were given to certain
officials who are directors in another
company.
In defense the answer states that
these practices were not known to the
whole board of directors.
Outlining their belief as to the best
policy to pursue in fixing the blame
for the scandals. the directors cay first
that the blame for alleged cases of
misconduct will be found to rest on
individual officers, and not upon the
directors as body. Having made
this explanation, the answer then ad
mits in a general way the wrong doing
charged.
The first charge specifically answer
ed is that premises on Broadway were
let at inadequate rentals to the Mer-
camille Safe Deposit Company. This
is admitted, but it is denied that at the
time this lease was made James H.
Hyde, j. W. Alexander, Gage E. Tar
bell, V. P. Snyder, Thomas D. Jordan,
Charles b. Alexander, II. r. Winthrop,
A. W. Kreich and William H. McIn-
tyre were stock holders and directors in
the Mercantile Trust Company.
With certain reservations admission
is then made that the capital stock Of
the Missouri Safe Deposie Company
was acquired by the Equitable, which
paid $3.50 per share for shares Of the
par value of 500. The reservations
in favor of the Equitable in connec-
ton with this charge include a claim
that these allegations are true in respect
to certain Of the Equitable officials,
but that the alleged purchase were
never known to the whole board Of
directors.
WaSteful and lmpr0vident.
The directors admit that the officers
made wasteful, improvident and i'm
proper advances Of money to agents,
and may have been guilty Of grave or
rors of judgment, but assert that they
have no information sufficient to war
rant the belief that the officers were
knowingly guilty of such improper acts.
National Bank Of New York city with
the United States National bank, by
which losses resulted to the Equitable
and a profit to some Of the directors,
is also admitted. But the directors
say that the responsibility for these
losses must be divided among those
who directly participated in, or by
any reason of their official duties,
should have had knowledge of the
transactions. The table Of alleged
improper salaries to Equitable officers
which was embodied in the states
charges is declared to be a true state
ment Of the figures. direct admis-
sion is then made that these sums were
paid without sufficient vouchers, but
the directors say their opinion is re-
served as to whether such sums were
transferred and in all cases warranted.
Admissions of greater latitude were
made to the charges that money, under
the guise of fees, was received by di-
rectors and stock holders who were also
officers of Equitable and other corpor-
atoms. After admission that these
moneys were received as charged, the
reply continues:
IA(uSSS uOI OOoVOs
MANY of these defendants were ig-
norent of said transactions, which were
not of character necessarily connect
ed with the whole board of directors"
Further on the report states:
Some of said pensions were found
to be justifiable and some others i'm
proper"
In knowledge of the loan to the Mer-
camille Trust Company, an admission
of its existence is made, but the di'
rectors deny that they improperly per-
mitted this transaction.
Finally admission of the payment of
this $685. 900 to the Mercantile Trust
Company on July IA last, is made, but
it is said that this occurred only after
the trust company asserted claim
against the Equitable and after this
claim had been resisted and disallowed
by all but the president and managing
officials of the society.