The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1905-08-05
RECEIVER IS ASKED
fQuTABH HElcr HoLDE4 f4
lHeHDq COMPLIANCE

Charges Made That FUNDS TO *
tent OF risny f1tllson Dollars
Have Been rraudulenfly wasted.
Accounting BY Officers and
Agents Also Desired.
New York, Aug. IAN action has
been Instituted b. state Attorney Gem
eral Julius Mayer in the supreme court
Of New York county, in the name Of
the people Of the State Of New York
against the Equitable Life Assurance
Society, It's officers, directors and MEM
bers of the executive and finance COM
mittees.
The complaint charges that the indi-
vidual defendants, disregarding their
duty to the society of which they were
directors 'negilgently, improperly and
improvidently performed, such duties
and have habituslly and continuously
done, or suffered to be done, wrongful,
illegal and improper acts, whereof the
defendant society has suffered great
loss and damage"
The individual defendants are fur
Their charged with having acquired
to themselves, or caused or permitted
to be transferred to others, in violation
Of their duties, money, property and
the value of property belonging to the
defendant society,""
New York, July 29.-In the form Of
an amended complaint to bill fled
last April, suit has been begun in the
United States circuit court Of the
Southern New York district to throw
the entire $421, 900, 600 Of the assets Of
the Equitable Lite Assurance society
into the hands Of receivers, who shall
"take possession of all the funds, as
sets and property held BY the defend
ant society Of every character and de-
scription, and administer the same a.
they may be directed by the court. !"
More than forty policy holders in
the Equitable, representing q dozen
different states, are included as COM
plainants in the present suit, which is
based in part upon the allegation that
the society has no funds with which
to meet its enormous losses and that it
10 inselvent.
Charges Are Sweeping.
In the amended bill, which is far
moro sweeping in its charges and in
its appeal for relief than was the orig
inal bill fled last April, there are In
oorporated many citations from the
Frick and Hendricks reports. publish
ed some months later. The bill al
leges that the society has been guilty
of mismanagement in syndicate trans-
actions, 'sthat unreasonable salaries
have been paid" and that Large
sums Of money, ranging from $780,
0OO, 900 to ST., OOO, 900 belonging to
said insurance funds Of the society
were allowed to remain uninvested in
banks and trust companies, that said
officers and directors Of the society or
many of them were large stockholders,
for the purpose Of securing pecuniary
benefit to such directors individually !;
and such undue and unreasonable cash
balances existed since the year 1900"
Legality Of Election Questioned.
Reciting the purchase of the Hyde
stock by Thomas f. Ryan, the COM
plant denies the legality of the cleo
ton of directors who are not stock
holders Of the society. The complaint
goes on:
"The assurance funds held by the
society have been fraudnlently and
negligently wasted and are being mis-
managed to the extent of many mill.
ions Of dollars. It is without legally
chosen board Of directors and the real
value Of the property held by it il un-
known and is speculative.
Reverting to q statement that the
defendant society "has been wilfully
and negligently and fraudulently mis-
managed and through its officers and
agents misappropriated assurance
funds" the complaint asserts that
"the said defendant is wholly unable
w 40H0y VA0 oAuOOAV VI SuCu W6SC0O
and Incorporated money to said
fund for the benefit of your annuit-
ants, and your orator AYERS that the
said defendant is wholly insolyent in
consequence thereof
wants Business wound Up.
1t is further added that s'the prop
erty of the defendants Is now in the
hands or in the control Of the stock
holders, whose representatives have
been guilty Of Misrepresentation,
fraud and neglect in the management
OF its affairs and property. The bust
ness aa6irs Of the society are at e.
seandstill, and its morale as an insurer
y destroyed; whatever business il may
do will be at enormous loss and sacri-
doe on the part Of present policy hold
ers. Their supreme interest ID to plaoe
tts assets in the hands Of compotont r.