Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-08-01

defendant society that they would
save said defendant society harmless
from loss by reason of said loan If sald
society would refrain from recording
said deed and from enforcing said de-
Gciency judgment. That the society
did So refrain. but said defendants have
neglected and refused to pay the
amount Of said losses said society had
so suffered"
1t is further charged that the Defend
ants permitted the society, for num-
Der Of years past to keep during al
most the whole Of each year excessive.
unnecessary and unwarranted. sums OF
money on deposit at inadequate rates
of interest with some 20 or more banks
and trust companies in which some OF
the defendants were stockholders, d.
rectors Or officers. and have permitted
the society to deceive the policyhold-
ers by annually. on Dec. q to 90, loan
ing approximately $40. 0OO. 900 on colat-
eral security, which loans have been
regularly called in again on Jan. to 5
following.
1t is charged that when, Jan. Z. 1902,
an increase in the capital stock of the
American Loan & Deposit Co. from
5000 900 to 81 900, 900 was authorized, the
| value of the stock being $3.50 per share
and each stakeholder being entitled to
subscribe for one additional share, the
Equitable Life which was entitled to
take 1888 shares, only elected to take
| 665, the balance being taken by James
II. Hyde, James II. Hyde and w.
W. Mcintyre, trustees, and Annie r.
Hyde and by other directors and MEM
bers of the executive committee. 1t is
| further charged that when the name
of the concern was changed to the
Equitable Trust Co. and Il further i'll
crease from s1,000000 to $3,000,000 was
authorized the defendant society pGr-
chased 1885 shares at $500 per share.
| the actual value being only $3S3.33 per
| Share. These allOtments it is charged
| were made by the defendants to their
own profit
After reciting that the society has at
| the end of each year caused a balance
| to lie struck purportinS to show the
| net surplus earned during the preced-
| ing year. the complaint says that at no
time during the period in which any
| of the individual defendants have been
| directors, or officers of the defendant
i
the charter paid or applied an cquita-
| bic share of the net surplus to. or for
| the benefit of the poicyholders. but
has been paying to the polcyholders
only q portion of the net surplus to the
| whole OF which they are entitled.
| It is further alleged that the rules
| and regulations adopted and hereto
fore acted upon for the ascertainment
OF the equitable share OF the surplus to
| each roliCyholder, were and are in
| correct. illegal and improper. and that
| of the surplus now held or purporting
| to be held by the defendant society, as
shown by it's statements, a sum APP
| rroximating $1O.00O.0O0 is held by the
society. in which said sum the pres
ent policyholders, in violation of law
| and the express terms of the charter,
| would have no interest. According to
these rules and regulations. a sum
approximating s100O0.O0O. is. according
to the statements of the society, held
in such n way that the policyholders
have no interest in it, although by law
and by the society's charter they are
entitled to all the net surplus.