New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-22
SUIT FOR Il RECEIVER.
Chicago Equitable POicyhOlders
Want Business Closed.


Chicago. April PA bill for the appointment
of a receiver for the Equitable Life Assurance
Society and seeking accounting was filed IN
the United States Circuit Court here to-day by
D. J. Schuyler in the name Of Abraham sitron
and others. policyholders in the society. Sitron
says he holds a $4,000 policy in the society, and
that his interests are being dissipated by the
officers and directors of the society
In the bill James w. Alexander and James H.
HYDE are charged with misrepresentation OF
funds and mismanagement. The bin declares
that for ten years the charter of the company
and the laws of New-York have been violated,
inasmuch as the officials have failed to dis
tribute the profits of the company among the
poIicyholders,
The complaining polcyholders are as follows:
John C. Sanditz, $4,000 policy, issued June 49,
1899: Abraham Stron, $1,000 policy, issued
March %. 1900; julius Ettelson, $3.50 policy
issued July 10, 1895; Max Ettelson, $1,375 so
policy, issued July II. 1895: julius Neuman,
$1,000 and $4,000 policies. issued October 6.
1898; Samuel Lyons, $1,000 policy, issued April
10 1902; Lima Lyons 81 900 policy, issued March
10. 1901.
Mr.. Schuyler who filed the BILL said that the
complainants had held meeting and decided
TO take the case into the federal court. 1t IS
their WISH he said, to have a receiver appointed
and the affairs of the society ended, so that the
policyholders may have just distribution of the
funds and profits now on hand. No further
steps than the request in the bill have been
taken for the appointment Of receiver but
Mr.. Schuyler said that within few days he
will go into court in that connection.
CHARGES IN THE BILL.
The bill alleges that for number of months
the president and vice-president and directors
Of the corporation have engaged in controversy
in relation TO the management of the business
transactions of the company and also in rela-
ton to the disposition and custody Of the assets.
This controversy, 1t is declared, is proving det-
rimental and destructive to the business of the
corporation and the interest OF the policyhOld-
ers. The controversy, it is alleged, is between
James w. Alexander and James H. Hyde and
other officers of the society. The petitioners al
Iege fear on their part that the controversy may
result in the dissolution Of the corporation.
The bill further recites:
James W. Alexander and James H. Hyde and GER
tain directors and executive heads Of the corpora
ton have. in violation of the corporations charter
and the laws Of the State Of New York, fraudu-
company to their own use and have so frauduentIy
used manipulated and dsspated and otherwise dis
posed OF the money and assets in such way and
manner that the corporation has lost the money
and assets so manipulated by Alexander. Hyde and
other directors, and that Alexander. Hyde and the
other directors have made large profits result
ing to the corporation have been unlawfully and
fraudulently retained and appropriated by Hyde
counting for the assets used for the gains and
profits aforesaid unlawfully and fraudulently
made by them in the manipulation OF the assets.
Another allegation Of the bill sets forth:
That one or more Of the officers and directors IN
der the unlawful and fraudulent gulse OF pre-
fences Of promoting the business of the corpora
52 by e4pehdeS B them for their
personal use and pleasure and t9T which me cor
officials have paid back to the company out or the
moneys taken from the assets and used for their
own benefit and pleasure certain large sums OF
money and that the sums are but an lnslghlncaht
part Of the amount drawn out of the assets Of the
CORPORATION and appropriated by the officials for
their own pleasure ana lhulVlu pIOlt anu ny
holders
The bill asks that an accounting be given
Of the surplus and asserts in order that the
amount of surplus for distribution may be
ascertained. A reservation is made in the petit
ton whereby all death claims may be paid
should the affairs Of the company be involved
in litigation as a result Of the bill.
The bill also asks that the affair be referred to
a master in chancery so that the amount due to
each po!icyholder out OF the surplus may be
determined for the purpose Of distribution. The
petition further asks for injunction restraining
selling. dea, ng manipulating in any way
disposng of the surplus and assets Of the COM
pany. except to pay death claims, and that
receiver be appointed to take charge OF the
money, property and assets Of the company
SAYS SALARIES ARE EXTRAVAGANT.
The charge is also made that the salaries of
the officers have been extravagant. In addition,
attention is called to the statutes of the State
of Illinois, which require that life insurance COM
panies doing business in Illinois upon the prin-
ciple of mutual insurance may make distrtbu-
ton Of their surplus funds either annually or
only i'm two, three four or five years, the
directors may from time to time determine. The
complainants allege and charge upon informa-
ton and belief that the officers and directors Of
the Equitable have omitted and failed for the
last ten years and upward, and still refuse to
distribute the surplus profits and the surplus
assets of the Equitable and to declare dividend
thereon. All Of which, it is held. is to the great
damage and detriment Of the compl6inants and
other policyholders Of the Equitable company.
The bill Of complaint asserts that there never
has been a determination of the amount of the
surplus funds surplus profits of the Equitable