Arizona republican., 1905-07-28
For ReCeiVeTShip to Wind
 up SOCiety'S Affairs
A RECTAL OF WRONGS
An Amended Complaint in the April Suit Containing Huch New hatter Disclosed in investigation Reports, and Disappearing Reorganization.

New York, July 27.-In the form of
 an amended complaint to a bill filed
 last April suit was begun today in the
 United States circuit court for the
 southern New York district to throw
 the entire S421, 100000 of the assets of
 the Equitable Life Assurance society
 into the hands of a receiver, who shall
 take possession of all the funds, as-
 sets and property held by the defend
 ant society, of every character and de-
 scription and administer the same as
 they may be directed by the court"
 More than forty policy holders in the
 Equitable, representing a dozen diff ferent states. are included as com
 plainants in the present suit, which is
 based in part upon allegations that
 the society has no funds with which to meet it's enormous losses and is in solvent.
 With J. Wilcox Brown of Maryland, holder of a ,00O policy, as com plainant, the papers were filed last April to compel a distribution of $S4,- 0O0,0O0 surplus fund of the society, to compel the management to make an accounting to policy holders and for the appointment or receivers for the surplus fund. pending judicial ascer- tainment of the rights of the policy holders thereto. Since the filing of that bill permission was obtained to file an amended complaint. Since the original bill was filed forty-four other policy holders have intervened in the suit. Among the inteTveners is Charles s. | Davis of Oklahoma, holder of a $1,0OO policy.
 In the amended bill, which is far
 more sweeping in it's charges and in its ] appeal for relief than was the original bill of last April, there are incOrporat- | ed many citations from the Prick and Hendricks reports. published some months later. The bill alleges that the | society has been guilty of mismanage-
 ment in syndicate transactions, that | unreasonable and excessive salaries have been paid and that "largs sums ] of money, ranging from $2O,00O to S37,- l 00e, DOC belonging to the said insurance funds of the society, were allowed by | it to remain uninvested on deposit in banks and trust companies without adequate interest, in many of which banks and trust companies the said of- ! ficers and directors of the society or many of them were large stockholders 1 for the purpose of securing pecuniary ! benefit to such officers and directors | individually and that such undue and ! unrea asonable cash balances existed since at least the year of 1900-'
 Reciting the purchase of the Hyde stock by Thomas F. Ryan, the com plaint then denies the legality of the election of directors who are not
 stockholders of the society. The com plaint goes on: '"The assurance funds all held by the society have been frau dulently and neglectfully handled and
 are being wasted and mismanased and 1 n Tfr.Faes r,f dollars; it is without a legally chosen board of directors and the real value ! of the property held by it is unknown l and speculative"
 Reverting to the statement that the | defendant society has wilfully and neglectfully and fraudulently misman-
 aged and, through its officers and agents, misappropriated the said as surance funds" the complaint asserts | that "the said defendant is wholly un- able to repay the amount of such
 wasted and misappropriated moneys
 to the said fund for the benefit of your annuities, and your orator ayers that
 the said defendant is wholly insolvent | in consequence thereof"
 It is further added that "the prop
 erty of the defendants is now in the | hands, or under the control of the stockholders whose representatives have been guilty of misapprOpriation
 waste, fraud and neglect in the man. agement of it's affairs and property. The business and affairs of the soci- | ety are at a standstill; its morale as an insurer is destroyed; whatever bus~ | mess it may do will be at an enor-
 nous loss and sacrifice on the part of
 the present policyhOlders. Their su- preme interest is to place the assets | in the hands of competent receivers appointed by this court and to grad