Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1905-07-31
RECEIVER IS ASKED
EQUITABLE POLICY HOLDERS file
AMENDED COMPLAINT.
Charges Made That Funds to ex.
tent of Many Million Dollars
Have Seen FrauduIentIy Wasted.
Accounting by Officers and
Agents Also Desired.

New York, July 29.-In the form of
an amended complaint to a bill fled
last April, suit has been begun in the
United States circuit court of the
Southern New York district to throw
the entire $421 900, 900 of the assets of
the Equitable Life Assurance society
into the hands of receivers, who shall
"take possession of all the funds, as
sets and property held by the defend
ant society of every character and de-
scription, and administer the same as
they may be directed by the court"
More than forty policy holders in
the Equitable, representing dozen
different 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 that it
is insolvent.
Charges Are Sweeping.
In the amended bill, which is far
more sweeping in its charges and in
its appeal for relief than was the orig
inal bill filed last April, there are in
corporated many citations from the
Frick and Hendricks reports. publish.
ed some months later. The bill al
leges that the society has been guilty
of Encouragement in syndicate trans
actions, that unreasonable salaries
have been paid" and that 'large
sums of money, ranging from $780,
100000 to $37,OOO,OOO belonging to
said insurance funds of the society
were allowed to remain uninvested in
banks and trust companies, that said
officers and directors of the society or
many Of them were large stockholders,
for the purpose of securing pecuniary
benefit to such directors individually;
and such undue and unreasonable cash
balances existed since the year 1900"
Legality OF Election Questioned.
Reciting the purchase of the Hyde
stock by Thomas F. Ryan, the COM
plant denies the legality of the cleo
ton of directors who are not stock
holders of the society. The complaint
goes on:
"The assurance funds held by the
society have been fraudnlently and
negligently wasted and are being mis-
managed to the extent of many mill
ions of dollars. It is without legally
chosen board of directors and the real
value of the property held by it is un-
known and is speculative.
Reverting to a statement that the
defendant society "has been wilfully
and negligently and frsudulently mis-
managed and through its officers and
agents Incorporated assurance
funds" the complaint asserts that
"the said defendant is wholly unable
to repay the amount of such wasted
and Incorporated money to said
fund for the benefit Of your annuit-
ants, and your orator AYERS that the
said defendant is wholly insolvent in
consequence thereof"
Wants Business Wound Up.
1t is further added that 1.-THE prop
erty Of the defendants is now in the
hands or in the control of the stock
holders, whose representatives have
been guilty of Misrepresentation,
fraud and neglect in the management
Of its affairs and property. The bust
ness aaffirs of the society are at q
standstill, and its morale as an insurer
is destroyed; whatever business it may
do will be at enormous loss and sacri-
fee on the part of present policy hold
ers. Their supreme interest is to place
it's assets in the hands OF competent re-
delivers appointed by this court and to
gradually, prudentially and economic
ally wind up the affairs of the compa-
ny. In this way only can the policy
holders and annuitants be protected
from eventual loss."
Restitution of Funds.
1t is also asked that an accounting
be taken under the direction of the
court of all dealings and transactions
of the society, its officers, agents and
stock holders, in the funds received and
held by the society, realized by the
premiums paid by policy hnolders, and
the accretions thereof, and from this
accounting be ascertained to what ex-
tent the society is indebted to the fund
so derived, on account Of damages,
losses and depletions occasioned by it's
negligence, mismanagement, misappro.
priation and other causes enumerated
in the said bill and this amended bill.
Then it is asked that lit be adjudged
that the defendant society pay into the
said assurance fund the amount ascer-
tanned on said accounting to be due
from the said defendant society to
the said fund.-"
Reduce Flour Rate to Orient.
Seattle. July 26. Commanding Aug.
Tx S&oo ali,,a Of tho roou lax linaa IN.