The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-01
DIRECTORS. CALLED ON TO PAY.
MAYER FILES COMPLAINT IN
n SUIT AGAINST THE 40.


Asks an Accounting and Restitution Of
Unlawful Profits From SAFE Deposit
Company Leases - Demands Also
That Excessive salar les He Refunded.
Tho complaint In the suit brought by the
Acknowledgement on behalf Of the people
al New York State against the Equitable
life Assurance Society and the forty-nine
man who comprised the socety's board
OF directors under the old regime was filed
Yesterday in the Supreme Court OF this
county.
Al told In THE SUM yesterdCy the purpose
Of the suit. which IL brought under Section
17sl Of the Code OF Civil Procedure Is to
compel an accounting Of the old directors
mana cement OF the policyholders funds,
TO recover al moneys wasted by reason Of
the negligence Of the defendants or through
violation Of their trust, to accomplish the
removal Of those directors who shall be
found guilty OF having profited through
the use Of the society's money and to en-
force a distribution OF tho Equitable's
1I.000. 900 surplus.
The suit Is based almost entirely upon
the evidence brought out by the Superin-
tendent Of Insurance.
The defendants, the complaint alleges,
have 'nsgngently, improperly and inn
providsntly" performed their obligations
and shabitually and continuously done or
csused or suffered to be done. wrongful,
illegal and improper acts by reason whereof
the defendant society has suffered great
Ices and damage and It's funds, assets and
property have been wasted and lost
Tho Attorney General asks first that the
profits made by certain directors from
the safe deposit lease transactions be re-
stored to the polioyholders and asks an
. accounting to determine tho amount.
For . period Of fifteen years down to
Dsoeunber, 1904. the complaint alleges.
the society expended In the case Of the Mer-
camille Safe Deposit Company for altera-
tons and improvements. an amount only
~ lese than the total amount received
BY It for rents, which amount, 1t is alleged,
was totally inadequate.
The complaint holds responsible James w.
Alexander, president, ana George L. Wilson
third vice-nesident, who signed this lease
on behalf Of the society and the stockholders
In The Mercantile Company who were direc-
tors In the Equitable-James H. Hyde,
mes W. Alexander. William Alexander,
70 z. Tarbell, Valentine P. Snyder,
.gaornas D. Jordan, Charles B. Alexander,
Henry r. Winthrop, Alvin W. Kreoh and
william M. Mcintyre. These defendants.
Il IL alleged. acquired to themselves and
transferred to others, in violation OF their
duty to said defendant society, certain
profit and benefit
Tho purchase OF the Missouri SAFE deposit
Company stock BY the Equitable Society
ct 035O for each 500 par value Of the stock
= designated by the complaint as an i'm
proper. wasteful and improvident act on
the part Of the officers and directors. AZ
the time When the purchase was ..s made the
the good will Of the business and the leases
With the Equitable society, which the COM
plant also designates as wasteful and i'm
peovident. At the. time Of the purchase
owned by James H Hyde and nearly all Of
defendants In the present action,
Tho complaint asks for q restoration OF
the money lost to the polioyholders IN the
These loans. it is alleged. were large, ex-
ceaaive and unwarranted, the only security
taken being notes by the agents backed by
assignments Of money which might become
oom con- providing the persons holding
tie policies did not forfeit them. The as
siRnment Of these loans by the society
to its subsidiary trust companies 80 that
the notes might be classed as Assets q the
oOCtoty ID SoOAoAoN w w "'>'soA~' s''~ --,-
More than a, ooo, 900 Of these obligations
wero assigned to- the Commercial Trust
Company Of Philadelphia, the society pay,
A. TO Its credit, although it had a large sum Of
money In the same company for which 1t
was receiving only per cent. The COM
plant sets forth that these defendants were
stockholders In the Commercial Trust
Iis1PPndsr, + IDS De Witt cuyler and Henry
r. WINTHROP. These defendants are named
90 stockholders in the Equitable Trust Com.
pany, which had 81, 900 600 Of the agents
be eh Il. &. Demins, NJ. Hartley Dodge,
Chauncsy NJ. Depew. William Van Horne;
@, B. Alexander, T. De Witt Cuyler, Samuel
N. Inman, David H. Moffat, E. H. Hartman,
George =. sauirsss: Bradish johnson and
The complaint alleges that some Of the
advances have never been repaid and are
unoolleotable. All OF the above named
defendants, ID is alleged, acquired through
the assignment OF the AGENTS obligations
belonging to the defendant society
The merger Of the Western National
Bank Of New York with the National Bank
Of tho United States in 1902 10 another trans
action on account Of which the Attorney
General seeks to recover money. The d.
rectors named as having been members
Of the governing board and stockholders
in the Western National Bank are: James
". Alexander, Henry NJ. Alexander. G.
Iedyard Blair, Chauncey NJ. Depew, Louis
Fitzgerald, Valentine P. Snyder, George
J. Could James H. Hyde, Brayton Ives and
The society held $4,000 shares Of this
stook, which before the merger had a
nnsrket value OF 5000 or 3e25 share. The
complaint alleges thatthe Equitables board
Of directors accepted $40 in cash and $40
In stock Of the consolidated bank in ex.
change for each 500 par value Of the stock
owned by sthe society, when the board
could have obtained $500 share by accept.
Ing an alternative oher.
fhe plaintiff seeks also to have the money
lost 10 tho policyholders By the payment
OF excessive salaries restored. The list
Of salaries contained in the Hendricks
report s reproduced in tho complaint and
il IL ct forth that all Of the salaries, are
sArpely In excess Of the sums for which
the service rendered could have been OBJ
tanned, >.
The board Of directors and officers. Il
y further alleged have permitted the 90; .;
ciety to pay too many OF It's officers and
directors and others large and unwar-
rsntsd sums as expensee incurred BY such
IL kho MI the dAfAndant