The Montgomery advertiser., 1905-05-08
SURPLUS FOR POLICYHOLDERS Owners of Stock Not En-
 titled to Funds. MIR. ALEXANDER'S. LETTER Mutual Idea is Emphasized by
 President. Interesting Communication fin Reply to Request for Confirmation of Ger
 tain 0mciaI Statements


 ander, President of the Equitable Life Assurance Society, tonight made pub lie a letter written by him to Edward A. Woods, manager of the Society, at Pittsburg. in which he asserts that the surplus of the Society Is held for the exclusive benefits of its policyholders and not the holders of the stock. Mir Alexander also takes occasion in the letter to deny the rumors that he will resign. The letter was written under date of yesterday and in reply to re- quest from MT. Woods for a confirma- | tion of certain official statements made by the Equitable Society regarding the mutual plan of its business and the ex- elusive ownership of the policyholders | of the surplus"
 MT Alexander says in part.
 'T recognize that for the benefit of present and future policyholders of the Society there should be at this time l some clear and unequivocal expression | on this subject and without reviewing | all of the Society's statements on this | subject, I consider that there can be no doubt as to three facts:
 First, that the business of the So- ciety has been conducted in accordance with its charter since the date of its organization on the mutual plan; sec | ond, that the profits of the Society have | been accumulated for its policyholders; | anu, lHlTus lHhl tHc pluS oL StiS " ciety is hel dior the exclusive benent | of It's policyholders.
 q do not recall any serious question | having ever arisen on these points un- | til recently, when a claim has been put forward on behalf of the stock | which Is at variance with the terms or | the Society's charter, the uniform | course of it's business and all it's off, | cial and unofficial statements and rep | resentations. This is not merely my own understanding and opinion, but IS l confirmed by MT. Van Clse who as you l know has been in the service of the l Society for nearly forty years, most OF | the time as it's actUary."
 Van CIse's Letter.
 | He then quotes from a letter written ! bv Mir Van Cise to the Society's man 1 ager at Albany In response to formal | inquiries from the latter on the sub l ject of the surplus. In this letter un- | der date of May 5, Mir. Vdn Cise says: | "As an. officer of the Equitable Life | Assurance Society. I fully agree with | you as to the truth of the following | statements in regard to the Equitabls; l 'F'irst-That the business has al- ways been and must always be con- ducted on the mutual plan.
 l Second-That the entire surplus
 belongs to policyhoiders exclusively.
 "Third-That each participating
 policy will receive It's due share of l surplus profits in accordance with the
 terms of each contract respectively.
 " Fourth-That the agents in so- licIting business on this matter has acted with due authority. and.
 "Fifth-That the policy holders have no ground for apprehension or doubt in the premises.
 l 'In this connection l would say that | while I have been connected with the | Equitable as clerk and officer for near ly thirty-eight years I have never until recently heard of any question being
 raised as to the absolute ownership or the surplus of the society by it's policy
 holders.
 | " For about three years l had the | privilege of being associated as one of | the subordinate officers with Henry B. | Hyde, the founder and late president l of the society. and my recollection IS | that in his declarations, both verbal
 and in writing, he always stated that | the business of the Equitable was | transacted on the mutual plan and that | the stockholders could not receive more
 than the dividend of $7,000 per a1num
 on their capital stock, which was pro-
 vided for by the charter.
 MT. Hyde always directed me to ap- portion surplus to policy holders when entitled by their contracts 10 sucn apportionment. on the basis of its all belonging to policyholders and he was very much averse to any reduction of dividends until such reduction was l found to be absolutely necessary In l accordance with our experience. "As actuary and assistant actuary or the society I have had special charge during more than twenty-tve years or the apportionment of surplus to holders of deferred dividend coptracts at the end of their dividend periods, and in making such apportionments, l have al- | ways proceeded upon the assumption that the entire surplus of the society belonged to its pollcqholders'
 These statements" continued MT. Alexander in his letter, "are literally true. They should set at rest all doubts and ouiet an agitation which should never have arisen and naturally dis turbinR to the society's policyholders
 "No greater emphasis could be given to the fact that the Equitable Life As- surance Society Is really mutual life Insurance company, in which the inter- ests and rights of the policyholders are recognized as paramount. than the sue cess of the recent effort to confer upon | the policyholders the right to electing a majority of the society's directors. Tt will Slow that Sle personal pro-
 prietary regiSne within the Society | must succumb to the checks and re-
 straints necessarily invited into this
 passage of control to the policyhold- | CTS, and many of the abuses and lrreg-
 ularities which are now in course of | elimination cannot thereafter occur IL | sbouId be a source of confidence to
 every one interested in the Society
 that the correction of all conditions
 hurtfuI in tendency or effect is being
 accomplished within the Society It.
 self. ,v
 (slgned) "John W. Alexander"