The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-01

thereof appears upon the sooiety's books
and no return has been rendered TO tho
society ON account Of such advances.
the Depew Improvement Company was made
upon grossly Inadequate security and
the bidding In OF the property at fore
closure sale under the mortgage taken
as security resulted In great waste and
Another allegation in the complaint is
that the directors and officers permitted
the society to maintain excessive sums OF
money on deposit with the National Bank
OF Commerce, the Mercantile Trust Com
the Trass nd az sns
nineteen other banks and trust companies,
in some or all OF which the individual de-
PENDANTS, or some OF them, were stock
holders. These sums. 1t Is charged, we're
deposited at INADEQUATE rates Of Interest sstor.
with having caused the society to mislead
and deceive the polioyholders In regard
to this deposited money. 1t ought, the
plaintiff AYERS, to have been put into more
renumerative Investments, but annually
mately 100000 on collateral security.
(which said loans have been regularly
called In again Oh Jan. 8 to 8 following,
and the funds redeposited In the repositories
from which they had been temporarily
WITHDRAWN .;d fSr this PURPOSE Recover also the
money diverted from the pohcyholders
In the REORGANIZATION Of the Equitable Trust
Company, when James H. Hyde and William
M. Mcintyre took the l,67o shares Of the $3.50
to which the Equitable society was entitied'
and which represented big loss to the So
ciety when the capital stock Of the society
was increased little later from u 100000
to "a, O0O, 900.
In regard to the society," surplus, the com
plant alleges that a no ~ Tine tbs
charter or as permitted by tho insurance
Laws Of New York State, credited or paid an
equitable share Of the net surplus to any OF
the policyholders.
.In violation and disregard Of the said
charter and law, the defend 1;a,nt so eek
the consent and approval Of the board Of
directors, have been crediting ana paying
to the said pohcyholders, from time to timeI
only portion OF the net surplus earned and
held by the. society. the whole OF which
-, period, we're polioyhoiders Of the defendant
society are entitled to have credited or paid
to them in equitable proportion.
The plaintiff further alleges;
-That the rules and regulations adopted
by the defendant society and its onlcers,
With the approval and consent Of the 90 70:
ciety's directors, for the ascertainment OF
the equitable share Of the surplus due 70
each policyolder, were and are incorrect
illegal and improper, and that OF the sur
plus now held or purporting to % neio ~
statements, q sum approximating No,-
600 600 Is held by the society, In which sum
the present policyholders, In violation OF
law and contrary to the express terms OF
the charter. would have no interest; LnsI
defendants "a officers and directors have
represented, and in the reports q the Tag
Commissioner OF the city OF New York
have stated, that the entire surplus belonged
to the policyhc lders.
defendant society are entitled to the whole
Of the present net surplus OF the society,
after deduoting a sufficient sum to cover
all outstanding risks and other obligations,
In accordance with the charter, and are
entitled to have an equitable share OF ss'o
net surplus credited to or paid TO each.
1t was said yesterday that defendant
E, II, Hartman had been served with a
complaint in the action before he started
West on his six months trip to Japan;
When asked yesterday whether No nt3naeo
stand, AttordV General Mayer refused to
Senator Depew attended . meeting Of
the Equitable executive committee yeeter-
day afternoon; y was the fiTst time En-, ne
the evidence in the Hendricks testimony
became public. The Senator announced
that he had no present intention OF resign
ing from the society's directorate.
sThe rumor that | had resigned, said
he aarose from a misunderstanding In an
interview that was cabled from Europe
in which / said l had rendered my resig;
nation as counsel. But never said had
resigned as q director. When reached
the executive committee room to-day
hastened to assure President Morton tnat
/ had no expectation & rcsignins IS g
director or as a committeeman. told
him that as soon as heard there was trouble
/ started right back to assume any re-
sponsibiity that might fall on me-.
There were reports yesterday, That the
Enforcement Company loan had advanced
favorably since the Senator's arrival on this
side, but nobody interested would discuss
this phase of the affair.