The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-08
ALEXANDER SAYS
. HE WILL NOT RESIGN
Maintains That Policy Holders
Own Surplus
WRITES LENGTHY LETTER
No Doubt About Fact That Profits
of the Equitable Have Been Ac-
cumuIated for Its Policy
Holders.
WRITES LENGTHY LETTER

New York, May flames W. Alexander,
president of the Equitable Life Assur-
ance society, tonight made public let
ter written by him to Edward A. Woods,
manager of the society at Pittsburg. in
which he asserts that the surplus of the
society is held for the exclusive benefit
of its policyholders, and not the holders
of the stock Mr. Alexander also takes
occasion in the letter to deny the rumors
that he will resign. The letter was writ
ten under date of yesterday, and in reply
to a request from Mr. Woods for con-
frmation of certain official statements
made by the Equitable society regarding
the mutual plan Of its business, and
the exclusive ownership of the policy
holders of the surplus.
Mr. Alexander says in part:
Il recognize that for the benefit of the
present and future policyholders of the
society there should be at this time some
clear and unequivocal expression on this
subject, and without reviewing all the So
ciety's statements on this subject. l con
siGer that there can be no doubt as to
three facts:
First. That the business of the society
has been conducted in accordance with
its charter since the date of its organiza-
ton on the mutual plan.
Second. That the profits of the society
have been accumulated for its policyhold-
ers.
Exclusively for Policy Holders.
Third. That the surplus of the society
is held for the exclusive benefit of its
policyholders. | do not recall any seri-
Gus question having ever arisen ON these
points until recently when a claim has
been put forward on behalf of the stock
which is at variance with the terms of the
soeiety's charter, the uniform course of its
business, and all its official and unofficial
statements, and representations, This is
not merely my own understanding and
opinion, but is confirmed by Mr.. Van
else. who you know has been in the
service of the society for nearly forty
years most of the time as its actuary."
He then quotes from a letter written
by Mr.. Van else to the societys manager
; at Albany in response to formal inquiries
from the latter on the subject of the
/ surplus. In this letter nuder GATE of May
), Mr. Van else says:
las an officer of the Equitable Lie
Assurance society. l fully agree with
statement in regard to the Equitable
Il. That the business has always been
and must always be conducted on the
mutual plan
% That the entire surplus belongs to
policyhoders exclusively.
80 That each participa ting policy will
receive its due share of surplus profits
in accordance with the terms of each con-
tract respectively
n That The agents in soliciting business
on this basis have acted with due au-
thority, and
3 That the policyholders have no
ground for apprehension or doubt in the
premises.
Question Never Raised
I'm this correction | would say that
/ while have been connected with the
Equitable as clerk and officer for nearly
| thirty-eight years ! have never until
! recently heard of any questions being
raised as to the absolute ownership of
the surplus of the society by it's policy
| holders
For about three years I had the prvil-
/ ege of being associated as one of the sub
ordinate officers with Henry b. Hyde. the
| founder and late president of the society,
and my recollection Is that in his declara-
tions, both verbal and in writing, he
always stated that the business of the
/ Equitable was transacted on the mutual
! plan. and that the stockholders could not
receive more than the div dend of $1,000
per annum on their capital stock, which
was provided for by the charter.
Mr.. Hyde always directed me TO ap-
/ portion surplus to policy holders when
| entitled by their CONTRACTS to such ap-
prominent on the basis of 1t all belong
ing to policy holders. and he was very
must averse to any reduction of dividends
until such reduction was found to be alb
| solntey necessary in accordance with our
| experience
"As actnary and assistant actuary of
the society. 7 have had snecial charge
during more than twenty-five years OF
I the apportiorment Of surplus to holders
of deferred dividend contracts at the end
of their dividend periods, and in making
/ such appointments | have always pro-
ceeded unon the assumption that the en-
tire surplus OF the society belonged to its
policy holders"
Should Set Doubts at Rest.
These Statements continues Mr. Al
eXander in his letter, ARE literally true
They should set at rest all doubts and
quiet an agitation which should never
have arisen. and Is naturally disturbing
to the soeetys policy holders and agents
NO greater emphasis could be given
TO the fact that the Equitable Life AS
surance society is really mutual life in
| sufance company. IN Whlch tne interests
and rights of the policy holders are rec
ognized as paramount, than the success
of the recent effort to confer upon the
policy holders the right of electing a ma
Jority of the society's directors.
ut will follow that the personal pro-
prietary regime within the society must
succumh TO the checks and restraints
necessarily involved In this passage of
control to the policy holders and many
of the abuses and irregularities which
are now In course of elimination cannot
thereafter occur. 1t should be a source
of confidence to every one Interested In
the society that the correction OF all con-
ditions hurtful In tendency or effect is
being accomplished within the society
itself JAS w ALEXANDER.
Birth Abraham In Session.
Baltimore, May 1.-THE biennial con-
yention of the order B'Rith Abraham