The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-08-01
WOULD REMOVE
EQUITABLE BOND
Serious Charges Made in Suit Just
Filed.
STATE ATTORNEY IN CASE
SPECIFIC INSTANCES OF GRAFT
ING ARE GIVEN.

IN IlSllluleu To-Day Dy state Attorney
General julius M. Mayer in the
supreme court of New York county. in
the name of the people of the state of
New York against the Equitable Life
Assurance society, its officers, di-
rectors and members of the executive
and finance committees, all of which
are named in the complaint. The de-
PENDANTS are the Equitable Life Assur-
ance society of the United States and
James w. Alexander. Louis FitzgeraId
Chauncey M. Depew, Henry c. Deming
Cornelius N Bliss, George H Squire
, Thomas J. Jordan. Charles s.. Smith,
! Valentine p. Snyder, Alvin w. Krech
William Alexander, John j. McCoOk
James Z. Forgan, G. Ledyard Blair
Brayton' Ives, Melville E. ingalls,
James III. Hyde, Alexander j. Cassatt.
Jacob X. Schiff, James j. Hill, T. JEFF
ferson Coolidge, Alfred NJ Vanderbilt
John Jacob Aston William c. Van
horne, Gage Z. Tarbell, Marvin Hug
hit, Charles B. Alexander, Thomas
Dewitt Cuyler, Marcellus Hartley
Dodge, Jose F. DeNaVarro, Bradish
johnson, Joseph p Lowe, John A Ste
wart, Edward II. Hartman, Levi p.
Morton, August Belmont, Darius ..
Mills, Robert T. Lincoln. George ]
Gould, John Sloane, George T. Wilson.
Thomas T. Eckert. William H. Nc
intyre, Henry w. Alexander Henry
9. Prick, Samuel H. Inman, Henry c.
Haarstick, David H. Moffat and Henry
r. Winthrop.
A week ago, before the papers were
completed, Edward II. Hartman, on
the eve of his departure for Japan, ac-
cepted service of the summons in the
proposed action, and today many of
the other defendants, including James
H. Hyde, were served through their
private counsel. The defendants are al
lowed twenty days from the time of
service to file their answers.
The complaint contains twenty-one
sections and covers thirty-three pages
OF typewriter matter; refers to the
cation made by State superintendent of
Insurance Hendricks; it is based on
information and belief and Attorney
General Mayer in his prayer to the
court says that the action was brought
on behalf of the people of the state OF
pursuant to the provisions of law. He
therefore says:
Serious Charges Made.
First-That the defendants. each of
them, other than the defendant, the
Equitable Life Assurance society of the
United States, account for their Of
fetal conduct in the management and
disposition of the funds and property
committed 70 their charge.
+ Second-That the individual defend
ants and each of them be compelled to
pay the defendant the Equitable Life
Assurance society, any money and the
value OF any property which they or
any of them have acquired to them
selves or transferred to others, or lost,
or wasted, by violation of the duties.
Third-That any defendant or defend
ants now director or directors or Of
ficer in the defendant society. upon
proof of misconduct be removed and
oil hn ha1 hxr he
board of the defendant society, purely
authorized to hold same, in order to
supply the vacancy or vacancies
created by the removal.
FOurth-That the net surplus Of de-
PENDANT society, after deducting a
sufficient amount to cover all outstand-
ing risks and obligations, be paid to.
or credited to, or applied for the bene-
fit of the present policy holders in
equitable proportion in accordance with
the charter and with the law.
F'ifth-T'hat the plaintiff have such
other further relief as may be just.
equitable and profitable.
The complaint charges that the in
dividual defendants, disregarding their
duty to the society of which they were
directors ''negiigently. improperly and
improVidently performed such duties
ard have habitually and continuously
done. or suffered to be done. wrongful,
Illegal and improper acts, whereof the
loss and damage
The individual defendants are fur
Their charged with having acquired to
themselves, or, caused or permitted to
their duties. money, property and the
value of property belonging to the de-
PENDANT society"
Specific Instances Given.
Section 10 of the complaint deals
"a 1aa of ofc-ae. in
TO the Mercantile Safe Deposit com
pany, the rental of which is declared to
have been inadequate and the terms
of the lease greatly to the disadvaut-'
age of the Equitable society; further
more: that James H Hyde, James
W. Alexander. Gage +. TarbelI
and other defendants were directors in
the Mercantile safe Deposit company
and thereby derived a profit i'm viola
ton of their duty to the Equita BILE So
ciety.
Referring to the purchase of the CAPT
tai stock of the Missouri Safe Deposit
company, for which the Equitable paid
$3.50 for each 800 par value the eIev--
enth section of the complaint declares
that the Equitable received but a NOM
inal rent for the premises occupied by
the safe deposit company; that at the
time of the stock purchase lao shares
out of total of 1000 were owned by
James H. Hyde and the remainder by
some of whom were officers in the safe
deposit company and in the Equitable;
Furthermore. that at the time of the
purchase the safe deposit company had
no assets beyond the lease and good
will of the business by virtue of the
lease.
The matter of loans to agents which
We're assigned to the Commercial Trust
company OF Philadelphia is set forth.
the charge being made that for the
money advanced on such assignments
per cent interest was paid, while
the trust company at the same time
held large SIMS OF the society's money
for which ii paid but per cent in
tereSt.
Referring to the merger in 1892 of
the Western National bank of the City
Of New York. in, which the Equitable
society was the owner of 1000 shares
with the National Bank of the United
States of New York. the complaint
says the society received $40 in cash
and $40 i'm stock OF the consolidated
bank in exchange for each 800 par
value of the stock in the Western Ma
tiOnal bank. making the total amount
received 500 for each share, the market
value of which. at the time. was from
$500 to $625 per share.
Salaries Too Large.
A schedule of the salaries paid dur