The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-08-07
EQUITABLE WAR
COSTS MILLIONS
Reduction of s8o,ooo,ooo Surplus
by $15,000,0O0 Is Estimate of
Upheaval's Cost.
Evidence of Crookedness in Other
Companies Is Said to Have
Been Found.
New York Sun Special Service.

New York Sun Special Service.
New York, Aug. 1t is said by
men who have been watching the
Equitable fight since the beginning,
and who are in close touch with certain
directors and prominent officials, that
by the time the society has paid the
expenses of the fight started by Alex
ander and Tarbell on Hyde, and the
great cost Of liquidation and loss of
business growing out of that fight, the
$80,000,000 surplus will have been re-
duced by $l5,OO0,0OO, and that policy
holders will suffer proportionately in
dividends
The legal expenses of the test suits,
it is said, will not fall short of 81 ,500,-
600. The convention of agents held
at the Hotel Savoy to further the game
cost the policy holders $4,000, it is
estimated.
There are rumors that reductions. in
real-estate values due to reappraisal
will not be less than $10,000,000. The
Prick investigation cost about $25, 900,
investigation $4,000. The independ-
ent investigation instituted by Paul
Morton, with the employment Of Doug
las Robinson and John n; Golding as
real estate experts, two large firms of
Cuc1l GS1Cu dCCOuAGcutoS anu SPSSAcA
counsel, will not cost less than $25, 900.
The advances made the general agents
by Tarbell and others aggregate about
100000, and it is estimated that af-
ter all has been said and done, the
society will lose 10 per cent, or $780,
900, in settlements.
-. Other Scandals Brewing.
Sufficient evidence already has come
to the Armstrong legislative insurance
Investigating committee to make cleal
to its members that the conditions ex
listing in the Equitable have been more
than duplicated in some respects. in sew
eral other big insurance companies, two
of them being In this city and two
others outside Of it.
1t is admitted it is not within thu
province of the legislative committee
| to investigate insurance corporation
in New Jersey or Connecticut, but IL
| the examination to be conducted, tn
testimony which necessarily must b
brought out will reveal the methods o
the interstate organizations.
The startling information has com
to the members of the legislative com
mittee that since the broad misuse o
the directory power by the Equitabl
society has become public, books an
other documents have been doctored i
certain ife-insurance organizations s
that, as far as possible, a fairly clea
bill of health may be shown after tn
legislative probe has been inserted 1
their affairs. -.-..
| Attempt to Hide Facts.
A minority member of the legisls
tive committee said today he coul
prove, and probably would prove, tina
certain men connected with a grea
banking house in Wall street.-the
banking house having relations wit
other big financial institutions in Ne,
York, Boston, Chicago, London, PAR
and Berlin-had undertaken the bus
ness of preventing certain facts frol
coming to light. These facts woul
show, it was said, that at least tw
big insurance corporations not onl
were affected by loose management an
graft to a greater extent than tn
Equitable, but that the two, in orde
to get a strake-off'' for their own d
: rectors and maybe favored few ou
side the directorates-had been abb
because of questionable loans, to plat
their own officials in certain bankin
houses. It was said the revelation
. that would follow a thoro inquiry mi
this matter were so deeply signifca1
: to the policy. holders that an effort W.
being made by big fnanciers and equa
) ly big politicians to confine the inquil
s ILL., IL ~oroo1io1 moo cY,roe