New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-07
MORE FRAUD ALLEGED.
Tontine PoLicyhoIders of Equitable
Declared Losers of OUer $50, 900 900.
fBY TELEGRAPH 70 TIE TRIBUSE-l
----- o--ffo1 @so-, M q 2

fRy TELEGRAPH 70 TIE TRIBUSEI
Albany. April s-A new application was fled with
the Attorney General by Raphael Moses for legal
proceedings against the Equitable to-day. Senator
Bracket made a fervid speech before the Senate
Insurance Committee. denouncing the insurance
law provision requiring that an application must
be made 70 the Attorney General before suit
against an insurance company can be begun
Mr. Moses application was Tor permission TO
examine into the manner in which the Equitable
distributes the tontine pocyholders the proper
ton Of the surplus called for by their various
conpacts. He called attention particularly 70 the
action OF the company in tbs case Of policies Of
John McGrath and William Turnbull, declaring
that these policyholders have been deprived Of
their share OF over 100000 in the surplus OF the
company through alleged fraudulent methods. The
application says in part;
This company,s charter requires it TO distribute
q surplus 10 al its policyholders Originally such
distribution Was to be MADE at the end OF lye
years. Then. by the act Of 1873, that modified the
law OF 1870. they were authorized annually, or at
But no mobilization was made OF the provision that
al the surplus must be distributed among the
policyholders. In 1880 the company commenced its
tontine business, and now nearly 80 per cent OF its
business IS done that plan. with the result that
other pOlicyhOlder has any interest in the eur
plus which arises from the tontine po!cyholders
Of particular class receiving less than the sum
they are entitled to- Under Section l9 Of the Laws
OF 1883. the company has right at any time TO
tiseTnent b. the Superintendent Of Insurance, the
entire surplus. after discharging an business IN
special classes. would belong 70 the company ara
be distributed among stockholders. thus giving 70
the 10000 OF STOCK approximate Falue OF nearly
one hundred millions wrongfully acquired by the
stockholders through violation OF the company's
charter.
In addition to Senator Bracket. A. Edward
Woodruff representing the so-caIed TulI commit
tee Of polcyholders Of the Equitable. appeared to
urge the passage Of the Bracket bill No one
opposed the measure. In his argument for the
bill. Senator Bracket said:
What has the Attorney General 20 say to me
whether I shall bring suit or not against the
Equitable Life Assurance Society? II is OF
his business. ] don't care what friendships, T5lat
powerful Interests the members Of this committee
may have desire 10 serve I don't what
coward appeal comes from this giant Goliath OF
800, o. What the people thought in their
minds that II no suit could be brought with
out the consent OF the Attorney General they
could attend the caucuses and the conventions and
ses that only a proper Attorney General was
elected
Now the same thought Is IN the mind OF the
president OF the Prudential when he wants to have
federal control. Then he will have only one hole
to watch, instead Of thirty-eight.
Now, what ] want 10 see IS that Section Sc. which
was Infamous IN conception and outrageous IN ar,-
humbest, crOss-eyed knock-kneed pigeon tOed hod-
carrier in the State shall have the right 20 20 into
court against corporations in the State and get
there on the level.
The hearing adjourned for further session
on Tuesday.
Senator Bracket to-day denied the statement OF
Vice-Presdent Hyde's friends charging that Presi-
dent Alexander had instigated his efforts obtain
q legislative investigation and his other activity
regarding the affairs OF the Equitable,
Il don't know Mr.. Alexander said the Senator.
Il never met him or saw him. The statement that
he rs behind me IS hardly worth noticing. The only
person behind me IS Mary S. Young"