New-York tribune., 1905-06-04
THE EXECUTIVE COMMITTEE.

executive committee have not been kept in the
conduct OF its business there has been a marked a
absence of that formality which is proper; II not
essential: IN dealing with a trust OF such great
magnitude.
mittee named in Mr.. Hyde's letter to the commit
tee of April o. 1905, participated with Mr. Hyde in
and are justly Indebted to the society the
amount of said profits,
THE PRESIDENT
to the president Of the society," @ bosnd 5hs
Of directors his knowledge of the rregular conduct
affairs at times when the v:ce-president was
Ss for eescton and that the pr president &sn
that the committee finds they existed and that
ghTap failed hf to bring
tee or the fnance committee mis- knowledge Of the
apsc STog sarRes acts of msv
Ninth-That the president participated in the
the as dess f @ nff Ma Il Hsfs r aPa
ApT ~ j. sSS @ and that he Justly ndebed to the
he had knowledge of the syndicates and their pur-
mttee he in many instances participated in the acts
CT the @ IN authorizing The purchase OF Se
of the banking syndicate making the sale
THE VICE PRESIDENT.
Tenth-As to the vice president the committee
finds that he. habitually involved the society in
ousiy obtained authorty Of the executive commit
tee; that he carries large amounts of stocks be.
first having secured the authority OF the society;
tha 6s h9 which oh b r
turned: that he conducted and participated in the
April p. 1903. having frequently as a member OF
the executive committee voted for the purchase o.
such securities shown in said letter in detail:
that he is indebted to the society to the amount OF
the profits he has received SHOWN by his letter.
and that he has been guilty of other Irregular acts
irregular in the sense that they not in accord
practices treating the society and its affairs largely
"A
the committee finds that general looseness mas
fairs. requiring prompt and thorough rectifcation
and that there is general lacking in the organi-
the accomplishment of satisfactory results.
NEED OF CHANGED BUSINESS METHODS.
Twelfth-The committee also finds that the soci-
etys methods of doing business are unsystematic
carried by the society are excessive that the
ety's alliances with financial institutions are un-
legitimate business that its advances to agents
qrectiy ar ana throtga 9ns1he @ i ana IN "eI b
the societys efforts should be directed to conduct
the lowest cost to the insured 2iong the general
lines hereinbefore indicated ~ o., .,-,,,.-
associations is more lively sense of the true nat
and the assured and of the duties owing by the
When we consider the fabulous accumulatfons
held by such associations represent a voluntary
tax placed & by The & Gp1 pf afeia d snd
sacrifice that is represented in daily living to secure
realize the high and delicate nature of the trust
involved in the administration of such fund.
Every economy consistent with sound administra-
ton and normal progress should De practised FIX.
expenses and superfuous offices should not be
investments should be carefully made, and all
the useful formal precautions employed to insure
GERS who are charged with the duty or making
then, TIa ,,+,.e having n,,rs,ed ifs investigation
Of the present management of the society sufficient
r No Should be radicay Changed and the
methods of conducting the business of the society
brought back to sound legal and ethical lines oegs
to be relieved from further duty.
FURTHER INVESTIGATING ADVISED.
that further investigation as indicated in chair
mans letter of April 8 to Mr., Alexander which the
making this report be proceeded With by Teor-
on Nth e
time for the work and personal responsibility FOR
duct the investigation more thoroughly, exped-
6nsE 6s or and @ somfee o do The COMMITTEES also
recommends that the new mana cement od nave d a
audit made of all the S0eetS books and
If other irregularities in the present management
are brought to light they will be only cumulative.
other the fnaity of the conclusions expressed
wifi g the HEM the g6ea 5
measure of responsibility; The committee hnGS
SECOND d have fallen far their
duty both in acts Of d and 6 sS b e
loose and irregular methods obtaining in the
acts and the example of the neglect of these Off
The shortcomings IN lnferI9r exeGnFgb bcb che tb
principal officers have encouraged or permitted tied,
removals Of 9ea that 6 the shogid Sd
ment of the reorganzed management
THE FUNDAMENTAL ERROR.
The various conditions in the Equitable Society
which have been criticised in this report nay haye , an
had their origin in fundamental error and tnat
da,o
Of life Insurance. This statement could be made
with equal truth in regard to many ofner cons f
warranted in going perhaps beyond the cOntem-
plated of its duties in the hope th n Iasng
The conduct of life insurance generally to higher
Whether resulting from miseonception OF the the
Importance of growth in size from the cGmPen4n m
there has existed st ta 19 no s%oe Hse All
OF 1aIe9as 5ae srqe te Ppttainins bgness
Growth beyond the normal rate. can be had only
through unusual exertion, and this means increased
The Equitable, in common with several others Of
the larger companies issues the greater portion or
ts noetes on the deferred distribution period plan
n is shs no ysterned to the pocyhoder annually
but is retained by the society for various spuiated
accumua then paid in one sum The advsn- ivanr
age which is held out to & the saGeE
| ali the natural accretions of his own policy; put
| of those who unable to continue them to the
| end of the stipulated term. -,
hope to one pocyhoIder that his prosperity VIII be
through the nG OF ssd anonfF 50 bs d
cussed here. AS each policyholder undeTStood me
he Would be in the fortunate class, he would seem;
| ngly be estopped from complaint II events forced
| him into the unfortunate class.
But entirely aside from this question "a as b. between tween
tho individual these can ~ De % no GbS
f6ss System tof of a
er has s an immediate ana yearly recurring
upon the operations OF nus ht rs,,it With those