Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-04-25
SUCH A MIDDLE!
Case After Case Against
the Equitable Society
Bids Fair to Seriously Cripple
Usefulness Of Company.
Heceivership Proceedings Begun by
Policyhclder in New York.

New York. April 24.-Receivership
| proceedings We're. today, instituted
| against tire Equitable Life Assurance
| Society by ]. Wilcox Brown of Mary
| land, policyholder. in the United
| states circuit court here, when he filed
an action against the society asking
Tor the appointment of a receiver Of
| the surplus fund: an account for the
benefit of himself and other policyhold-
ers that may join with him i'm the pro-
| ceedings and an injunction to prevent
the society holding the surplus.
Brown alleges that the society's of
ticials have disregarded their trust and
have not paid his proper portion of the
net surplus. His counsel have issued
statement saying that the huge sur
plus of the society Is not legally re-
tanned from the policyholders nor law
fully used by the society and that the
profits due the pOlicyholders, except
the per cent. dividends is now at
tempted to be swept aside by the
stockholders claims.
The papers filed aver that the per-
sonal interests of the Equitable Off
GERS i'll other corporations and syndi-
Gates with which the Equitable does
| business are public scandal.
Counsel representing James H. Hyde,
vice president of the Equitable Life
| Assurance Society. and Franklin L.
| Lord IL stakeholder in the society, who
| has asked for an injunction against
| the proposed plan for mutualizating
! that society. appeared before Justice
Maddox i'm BROOKLYN. today, to oppose
| - NJ
| president Of the society, to strike out
| certain references to Mr.. Alexander
| fro mthe petition by which Mr. Hyde
interviewed in the Lord action. AS the
| court had not received the Alexander
| petition there was no hearing.
The adjourned hearing on the appli-
cation of Herbert G.. Tuli, holder of a
$1,000 policy in the Equitable Life
Assurance Society. for an injunction
restraining the directors of that insti-
tuition and the state Superintende of
insurance from taking any further pro-
cfedines TO obtain an amended char
ter for the society, was continued, to-
day. before Justice MacLean. in the
supreme court. Lawyer Woodruff. who
appeared for Mr.. Tull. in presenting
his clients case, declared it would be
better TO have Il dissolution of the So
ciety than to permit the amended char
ter to be adopted.
Tho provision of the charter that
stockholders shall receive dividends
not exceeding 21h per cent. each six
months. he declared, had been dsre-
gardnG.
Mr.. Woodruff pointed out that the
proposed amended charter would con-
tain the word may" instead of "shall"
IN the clause relating to the payment
of dividends and would render the
clause practically worthless.
| Mr.. Woodruff declared that all the
Stockholders were entitled to under the
original charter WAS the 100000 cari-
tai subscribed by them and that all the
surplus belonged to the policyholders.
Mr.. Hornbower representing the soci-
ETY.. in reply. said that the action of
the Legislature had been upheld by
the court of appeals as eminently just.
as otherwise with 4 million and 4 half
of policyholders scattered all over the
world. it would have been easy for
any policyhoder in any state to bring
suit for an accounting and the appoint
ment of IL receiver and this would re-
suit in endless litigation.
II do not represent either Mr.. Hyde
| or N.Y. Alexander" said Mr. HOrnblow-
or. but this society. All the parties
went before the state superintendent
| of insurance and he approved of the
| amended charter. My opponent comes
here to represent policyhOlder FOR
| $40 900 cut of nearly $500. 900. 900. We
| nave n SURPLUS of SS00OOoOO and the
| solvency of the institution is unqucs-
| tioncd.'
| Justice MacIean gave counsel until
Nav | to submit briefs and reserved
| decision.