New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-22

stand IT, by the board OF directors OF the Equl-
table Life and placed in the hands OF the super
intendent OF Insurance a gentleman IN Mn nyI1
I have unlimited confidence as to capacity anu
as to integrity. A few days ago a SUIT was
brought by Mr. Lord questioning the right Oh
the superntendent TO mutualZe this company
TO deprive him as a stakeholder OF the power
that his stock gave TO him and Of the Dement'S
which he claimed that he might derive We're
naturalization not TO take effect. That matter
is to-day in the courts-in my opinion, III the
place where II should be settled, and the only
place where it can be settled as 10 the relative
rights of the stakeholder and the pOlicyholder
of the Equitable Life.
], of course. am unable to judge to what
the result OF that suit may be. I am not
lawyer and I cannot advise you from a lawyers
standpoint The question has been raised as 10
whether the legislature could not alter the
charter Of the Equitable Life Assurance So
ciety. changing its character. 1 think II Is per-
haps true that ii could. 1t could alter its char
the stockholders, II they saw fit to reject the
altered charter, could not refuse to act under
it; and in that case they would be compelled
TO go into the hands of receiver or close up
the business of the Equitable Life.
There are a few attorneys that are not at the
present time retained by the Equitable, and l
have taken occasion to consult some Of them
In relation to this unfortunate. very unfort-
innate situation. have a feeling that it was
not only unfortunate for the policyhoders. but
unfortunate for the State Of New-Hork that
this situation could exist under our insurance
law I realize that it is not only unfortunate
for the Equitable. but IT is unfortunate for all
insurance interests in this country, and par
tcularly in the State Of New-York
NOT INFLUENCING LEGISLATION
However there are those in the legal profess
sion who inclined to believe that you can
not, by act Of the legislature, compel the stock
holders OF the Equitable Life Assurance So
ciety TO accept naturalization in its brOadest
lines without their consent. That l give you
simply as an opinion it to me. 1 cam
not tell you what the legislature Of the State
OF New-York wiz do. For the short period that
have held this Office I have endeavored to
separate the executive department. so far
possible, from the legislative and the judicial.
have left it to the legislature to determine
what acts II would send to me, only recommend
Ing by public message, and have then taken my
time to consider the propositions that it has
presented to me for my approval disap-
proval.
The agents arrived here at 5 p. m. their
return from Syracuse. They were introduced to
the Governor by Frank w. AIcNamee, of this
city. secretary Of their committee, who read
the recently adopted resolution advocating
naturalization and petitioning the legislature
for charter amendment to that effect. Joseph
Bowes. OF Baltimore, said that the time had
come 10 prevent the Equitable from being re-
garded as the patrimony OF any one man. and
being used by him for his selfish interests. He
said:
From its inception by its great founder, Henry
B. Hyde, the Equitable has been intended to be
truly mutual concern and the agents had gone
up ana DOWN Inc world prOcalmlng ana leading
policyholders TO believe that the only part OF
! the assets Of the society that could be paid TO
stockholders was $1,000 per annum. per
/ cent interest upon the $4,000 of stock. OF the
| five six hundred thousand policies issued by
! the society nearly 80 per cent contain distinct
and specific provision that each one shall be en-
titled TO its full distributve share of the surplus
at the ends OF periods specified. During the ad-
mnistration OF the affairs of the society by the
! elder Alexander and by the founder Henry B.
/ Hyde, faith to the utmost was kept with policy
/ holders. No question was ever raised about the
/ ownership Of the surplus.
We have fallen on evil days, in which claims
are being made and questions raised which
point TO a reversal of the entire business meth
/ DDS Of the society, which cast distinct doubt
/ upon the representations we have made to poll
1 icyholders. and which constitute menace of the
most terrible character to the interest of all who
! hold contracts with the society.
The Equitable policyholders have no part IN
! its administration. They see their interests
trodden under foot and improvident and specu-
latiVe plans advanced by those in control while
| they sit impotent and voiceless. No one man is
/ equal to handling the affairs OF this organza-
/ ton. James H. Hyde was advanced to the chief
/ Office with the cOnnivance of the high officers
/ who to-day are against his policy. His promo
ton was possible only through the sitting of the
ambition of men long connected with the man
! ageInent OF the society. For five years ne has
been watched INDUCED forgiven. until at last
we are forced to forego our loyalty to his father
and regard duty TO pOlicyholders. Until
control goes to the policyholders our growth is
arrested.
The present situation has reached the limit
Of friendly concession and peaceful endeavor
The two compromise charters were Inadequate
Litigation postpOnes their operation Meanwhile
our business languishes. We have exhausted
cur powers under the charter. and must appeal
20 greater power as represented by the legis-
lature.
Speeches in similar vein were made also by
Edward A. Woods. Of Pittsburg; Archibald
Haynes. Of New-York. and r. T. Naist, of Lon
don. Mr. Naist said that the policyholders
looked for relief 10 the same legislature which
forced the society to deposit 100000 stock, and
that except for this stock issue the present
situation would not have resulted