The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1905-09-02
ADMIT MANY THINGS
EQUITABLE BIRECfoRs ASH THAT
BLAME Be PLACED.
charges OF Excessive rees, made.
quafe Rentals, lmprovtdence end
Other Forms Of rsismanaaement
Acknowledged, but Claimed run
Board Was Not Involved.


Board Was Not Involved.
Now York. Aug. 28.-The Equitable
Life Assurance Society has Joined with
the State Of New York in asking for a
full investigation in court of it's direc-
tors and officers and their alleged
wrong doings in managing the moneys
OF the society. The document which
announced this determination was the
answer Of the forty five Equitable d.
rectors to the charges against them by
the state.
Admission is made that the Equita.
Die had been guilty of improper acts.
Among these answers admit the $780,
600 loan of the Depew Improvement
Company. They admit the Smith
$685., 900 loan to the Mercantile Trust
Company, but waive responsibility in
this loan 90 far az tho board of direct
ors is concerned, and indicate Messrs.
Alexander, Jordan and Deming as the
persons having the most intimats
knowledge of these transactions.
Admits Excessive rees.
The charge that excessive salaries
were paid to officers Of the society is
not directly answered. but admission
is made that under the gulse Of salar-
les. excessive fees were given to certain
officials who are directors in another
company.
In defense the answer states that
these practices were notknown to the
whole board of directors.
Outlining their belief az to the best
policy to pursue in fixing the blame
for the scandals. the directors say first
that the blame for alleged cases of
misconduct will be found to rest on
individual officers, and not upon the
directors as a body. Having made
this EXPLANATION, the answer then ad-
mits in general way the wrong doing
charged.
The first charge specifically answer
ed is that premises on Broadway were
let at inadequate rentals to the Mer-
camille Safe Deposit Company. This
is admitted, but it is denied that at the
time this lease was made James 81.
Hyde, J. w. Alexander, Gage E. Tar
bell, v. P. Snyder, Thomas D. Jordan,
Charles B. Alexander, 81. r. Winthrop,
A. W. Kreich and William 81. MoIn-
tyre were stock holders and directors in
the Mercantile Trust Company.
With certain reservations admission
is then made that the capital stock Of
the Missouri Safe Deposis Company
was acquired by the Equitable, which
paid $3.50 per share for shares Of the
par value Of 500. The reservations
in favor Of the Equitable in connec-
ton with this charge include a claim
that these allegations are true in respect
to certain of the Equitable officials.
but that the alleged purchase were
never known to the whole board Of
directors.
Wasfeful and lmprovident.
The directors admit that the officers
made wasteful, improvident and i'm
proper advances Of money to agents,
and may have been guilty Of grave er-
rors Of Judgment. but assert that they
have no information sufficient to war
rant the belief that the officers were
knowingly guilty Of such improper acts.
The consolidation Of the Western
National Bank Of New York city with
the United States National bank, BY
which losses resulted to the Equitable
and q profit to some Of the directors,
ia also admitted. But the directors
say that the responsibility for these
losses must be divided among those
who s'directly participated in, or by
Iany reason Of their official duties,
should have had knowledge Of the
transactions" The table OF alleged
improper salaries to Equitable officers
which was embodied in the state's
charges is declared to be true state
ment Of the figures. A direct admis-
aion is then made that these sums were
Maid without sufficient vouchers, but
the directors cay their opinion 10 re-
served az to whether such sums were
transferred and in all GASES warranted.
Admissions Of greater latitude were
made 10 the charges that money, under
the Ruise Of fees, was received oy Oh
rectors and stockholders who were also
officers Of Equitable and other oorpor-
at;ons. After admission that these
moneys were received ~ charged. the
reply continues:
Excuses for Board.
"Nany OF these defendants were lg-
-.-.ne - aid transactions, which were