Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-08-26
81, NOW ASKS INVESTIGATION.
Equitable Directors Admit Illegal ACTS
But Claim Innocence.

New York Aug. 2J-The Equitapie Li0
Assurance Society, today. Joined WIN the
state of New York in asking Tor iuii
Investigation In court of Its directors ana
officers and their alleged wrong dolngs
In managing the moneys of the society.
The document which announced TINS de-
termination was the answer OF the -
Equitable directors to charges Hauc
against them in connection WITH SUIT
brought against the Equitable Iitc Assur-
ance Society by the people OF tue STATE
of New York. This answer was iiled WITH
Atty. Gen. Julius X. Mayer
Admission IS made that some officials
of the Equitable have been guilty OF I'M
proper and Illegal acts. In all. Is charges
! are answered by the directors. Among
these answers they admit the $eJ0OO loan
to the Dcpew Improvement Co. They add
nit the $s5.0oO loan of the Mercantile
Trust Co, but waive responsibility In
this loan SO far as the board of directors
is concerned and Indicate Mcssrs. Alex
andcr Jordan and Demng as the persons
having the most intimate knowledge Oh
these transactions.
The charge that excessive salaries were
paid to officers of the Equitable is not
directly answered. but admission is made
that. under guise of salaries. excessive
fees were given to certain Equitable OF
| ficials who were also directors in other
| companies. In defence. the answer states
that these practices were not known to
the whole board of directors.
| Outlining their belief as to the best pol
Icy to pursue in fixing the blame for
the Equitable scandals. the directors say
first that the blame for alleged cases of
misconduct will be found to rest on indi-
vidual officers and not upon the direc-
tors as a body. Having made this eXpla
nation the answer then admits in Il gel-
eral way the wrongdoings charged.
| The first charge specifically answered is
that premises OH Broadway were let at
/ Inadequate rental to the Mercantile Safe
j Deposit Co. This is admitted. but it is
! denied that at the time this lease was
made Jas. II. Hyde. James w. Alexander,
| William Alexander. Gage F.. Tarbell.
Valentine P. Snyder. Thomas d. Jordan.
Charles Z. Alexander, Henry Il. VIM
throp Alvin W. Krech and William II.
! Mcintyre were stockholders and directors
in the Mercantile Safe Deposit Co.
, With certain reservations. admission is
then made that the capital stock of the
Missouri Safe Deposit Co. was acquired
by the Equitable Society, which paid $50
per share for shares of Il par value of
800. The reservations in favor of the
Equitable in connection with this charge
include a claim that these allegations arc
true In respect to certain Of the Equitable
officers, but that the alleged purchases
were never known to the whole board OF
directors.
AS to excessive and unwlrranted loans
TO agents the reply admits that they We're
made but the directors assert that they
have no information sufficient to form
4 belief that the officers who made the
loans were knowingly guilty of such i'm
proper acts.
The consolidation of the Western
National Bank of the city Of New
! York with the National Bank Of the
United States Of New York by which a
money loss resulted to the Equitable
Society and a profit to some of its di-
rectors is also admitted but with re-
striction to individuals defendants.
The table of alleged improper sal
aries to Equitable officials which was
embodied in the states charges, is de-
clare1 TO be Il true statement of the
figures \ direct admission is made
that these sums were paid without
sufficient vouchers or audit. but the di-
rectors say their opinion Is reserved
as to whether such sums were large
and IN al, cases unwarranted."
Admissions of greater latitude how
ever. are made OH the subject of PEN
siOnS and to the charges that money
under the guse of fees was received
1x1, ,l;,.an ,,,1 x.Ho ,t,1lI hn
were simultaneously offers Of the
Equitable and other corporations. De-
NAL is next made of any knowledge or
information sufficient to form be-
lief concerning the payment Of attor-
neys fees which We're disproportionate
to the services rendered.
The S250,0c0 loans to the Depew I'm
rrovement Co. is next admitted. with a
provise which states that admission
was restricted to those of the individ-
/ ual defendants who We're, or ought to
have been, cognizant of these transact
| TONS"
Charges of the the existence of ex-
cessive deposits in the National AMI,
of Commerce Of New York, the Mer-
camille Trust Co, of New York. the
Commercial Trust Co. of Philadelphia,
and at least 10 other banks, are admit
ted with the same restrictions.
| Precisely the same restricted admis-
sion is made concerning the officers Of
the American Deposit G. Loan Co.,
corporation which is admitted to have
been organized for lending money to
policyholders upon policies held in the
Equitable and used to the profit of di-
I rectors and others in the Equitable.
| The s10,000.000 surplus held in the
Equitable Society, is the final item
considered by the directors and IN sub
stance their reply on this charge is
that they do not know precisely what
their rights are regarding the surplus
and that they are willing to leave this
matter for the courts to decide.
In conclusion the answers were:
Therefore. this defendant joins in
! the PRAYER Of the plaintiff in this aC