The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-07-28
RECEIVER SOUGHT
FOR EQUITABLE
Grave Charges Made in Action
Taken Against the Big In
surance Company.

New York, July 29.-ln the form OF
an amended complaint to bill filed
last April, suit was begun today in
so9thern New Yorh district to III
the entire 1921, 100000 Of the assets
Of the Equitable Life Assurance socie-
ty into the hands of receivers, who
shall "take possession of all the funds,
assets and property held by the de.
PENDANT society of every character and
description, and administer the same as
they may be directed fast By the n cgget
different diff states, are included as com
plainants in the present suit, which is
based in part upon the allegation that
the society has no funds with which to
meet its enormous losses and is lnsol-
vent.
With j. Wilcox Brown Of Maryland,
the holder of $25, 1000 policy, as com.
plainant, papers were fled last April
to compel the management to make an
accounting to the policy holders, and
for the appointment Of receivers for
the surplus fund, pending Judicial as
| certainment of the rights of the policy
holders thereto.
Grave Charges Made.
In the amended bill, which is far
| it's appeal for relief than was the orr
ccorporated many citations from the
Frick and Hendricks reports, published
some months later. The bin alleges
that the society has been 9;en guilty OF 81
mismanagement in syndicate trans sac
tions.; that. "unreassonable and ex 1S
sive" salaries have been paid, and that
Charge sums Of money, ranging from
100000 to $37 ,OOO,OOO, belonging to
| the said assurance funds of the socie-
ty, were allowed by it to remain un-
invested on deposit in banks and trust
companies, without adequate interest,
in many Of which banks and trust COM
panies the said directors and officers
gu Of the s': We're u 1asge
the purpose Of securing pecuniary ben
eft to such officers and directors in
dividually; and such undue and unrea-
sonable cash balances existed since at
least the year 1902
The Ryan Purchase.
Reciting the purchase of the Hyde
stock by Thomas F. Ryan, the com.
plant then denies the legality Of the
election Of directors who are not stock
holders Of the society. The complaint
"The assurance funds held by the
! society have been fraudulently and neg
lectfully used and are being wasted and
= mismanaged and lost to the extent Of
many millions Of dollars; it is without
legally chosen board Of directors,
and the real value Of the property held
by it is unknown and speculative.'
Declared Unable to Pay.
Reverting to a statement that the
defendant society "has willfully and
neglectfully and fraudulently misman-
aged and thru it's officers and agents
nisappropriated the said assurance
funds,'' the complaint asserts that "the
said defendant is wholly unable to re-
pay the amount of such wasted and mis-
Appropriated moneys to said fund for
the bentft Of your auunitants, and your
Orator AYERS that the said defendant is
wholly insolveHt in consequence there
of.''
Waste and Fraud.
It is further added that "the prop
erty of the defendants is now in the
& hands, or under the control, of the
I stockholders whose representatives have
4 been guilty of misappropriation, waste,
I fraud and neglect in the management
4 of it's affairs and property. The bust
ness and affairs Of the society are at a
I standstill; it's morale as an insurer is de-
stroyed; whatever business it may do
& will be at an enormous loss and sacri-
fee on the part of the present policy
: holders. Their supreme interest is to
place the assets in the hands of compe-
tent receivers, appointed by this court
! and to gradually, prudently and eco
! nomically wind up the affairs Of the
: company In this way only can the
policy-holders and annuitants be pro.
tected from eventual and irretrievable
loss
What Is Asked.
: It is asked that an accounting be
4 taken, under the direction Of the court
of all dealings and transactions of the
= society, it's officers, agents and stock:
+ holders in and about the funds received
8 and held by the society, realized from
8 the premiums paid by policy-holders ano
a annuitants, and the accretions thereof
ard that on the taking Of this account
B it be ascertained to what extent the 50
ciety is indebted to the fund so derived
= on account of damages, losses and de
& pletions occasioned by its negligence
q mismanagement, m1saPProPr1at1on anc
Il other causes averred in the said bill ant
81 this amended bill. -s.'5
a Then it is asked 'that it be ad
q Judged that the defendant society pay
81 into the said assurance fund the amour
j ascertained on said accounting to b.
i due from the said defendant society t.
E the said fund.- ...