Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-05-08
Alexander Will Contest Hyde's
Right to Control Equitable's
$8O,OOO,OOO Surplus
BELONGS TO POLICY HOLDERS
Alleged That Hyde Claims the Money
for the Stock of the Society, Of
Which He holds Controlling inter-
est-AIexandsr Announces His Po-
sition in an Open Letter.

claim to control over the $4,000, 900
surplus of the Equitable Life Assur-
ance Society is to be vigorously con-
tested by James w. Alexander, pres
ident of the society. The vast sum,
Mr. Alexander says, belongs to the
policy holders and is held for their
benefit exclusively rather than for the
benefit of the stockholders. Hydes
claim to the surplus in behalf of the
stock of the society, of which he holds
controlling interest is In violation of
the societys charter, according to Mr..
Alexander The society is a mutual
concern, has been. conducted as such
and the profits have been accumulat-
ed for the policy holders.
Mr.. Alexander announces his posi-
ton in a letter he wrote Saturday to
e. A. Woods, the society's manager in
Pittsburg, who had requested conflr-
nation of the society's official state
ments regarding "the mutual plan Of
it's business and the exclusive owner
ship of the policy holders in the sur
plus"
II recognize that, for the benefit Of
present and future policy holders of
the society, there should be at this
time some clear and unequivocal ex-
preston on this subject" says Mr..
Alexander's letter, "and, without re-
viewing all the society's statements on
this subject, consider that; there can
II TO In ofo
81. That the business of the society
has been conducted in accordance with
it's charter stree the date of its organ
ization, on the mutual plan.
"2. That the profits of the society
have been accumulated for its policy
holders.
"3. That the surplus of the society
is held for the exclusive benefit of its
policy holders.
Il do not RECALL any serious question
having arisen on these points until
recently, when claim has been put
forward in behalf of the stock which
is at variance with the terms OF the
society's charter, the uniform course
of it's business and all its official and
unofficial statements and representa-
lions.
This is not merely my own under
standing and opinion, but is confined
by Mr.. Van else, who, as you know,
has been in the service of the society
for nearly forty years, most Of the
time as its actuary"
Mr.. Alexander then quotes from
letter written by Mr.. Van else to the
society's manager at Albany in re-
spouse to formal inquiries on the sub
ject of the surplus. In this letter, UNI
der date of May 5, Mr.. Van else says:
LAS an officer of the Equitable Life
Assurance Society, fully agree with
you as to the truth of the following
statements in regard to the Equitable.
81. That the business has always
been and must always be, conducted
on the mutual plan.
a. That the entire surplus belongs
to the policy holders exclusively.
"3. That each participating policy
will! receive it's due share of surplus
profits in accordance with the terms
of each contract, respectively.
"a. That the agents in soliciting
business on this basis have acted with
due authority; and
"5. That the policy holders have no
ground for apprehension or doubt in
the premises.
Limits Stockholders to Dividends.
"For about thirty years had the
privilege of being associated as one
of the subordinate officers with Hen
ry B. Hyde the founder and late presf-
dent of the society, and my recollec-
ton is, that in his declarations botf
verbal and in writing, he always stat
ed that the business Of the Equitable:
was transacted on the mutual plan
and that the stockholders could no,
receive more than the dividend of 81,
600 per annum on their capital stock,
which was provided for by the char
ter
"Mr. Hyde always directed me to
apportion surplus to policy holders.
when entitled by their contracts to
such apportionment. on the basis OF it
all belonging to the policy holders. In
making such apportionments l have
always proceeded on the assumption
that the entire surplus Of the society
belonged to it's policy holders.
'These statements" continues MT
Alexander in his letter, are nterally
true. They should set at rest al
doubts and quiet an agitation which
should never have arisen and IS nat
urally disturbing to TIC society's pei
lev holders and agents.
"The financial strength and stabil-
ity Of the society are not questlonea.
There is no abatement of. effort on the