The daily morning journal and courier., 1905-08-26
EQUITABLE WITH THE STATE
JOINS IN ASKING FULL INQUIRY
 or DIRECTORS ACTS.

Document Announcing Determination
 is the Answer of the Forty-nine Di-
 rectors to the Charges Made Against
 Them in Connection With the Suit of
 the People vs. the Society-Apparent
 Effort to Place Blame on OfEIcers.
 New York, Aug. 25.-The Equitable Life Assurance society to-day joined with the state of New York in asking for full investigation in court of it's directors and officers, and their alleged wrongdoings in managing the moneys of the society. The document which announced this determination was the answer of the forty-nine Equitable dt- rectors to charges made against them in connection with suit brought against the Equitable Life Assurance society by the people of the state of New York, This answer was filed with Attorney General Julius Meyer. =
 Admission is made that some off, cials of the Equitable have been guilty of improper and illegal acts. In all, thirteen charges are answered by the directors. Among these answers they admit the $250,000 loan to the Depew Improvement company. They admit the $685,000 loan of the Mercantile Trust company, but waive responsibility in Ioa fa 4I,o receors is concerned and indicate that Messrs. Alexander, Jordan and Deming are the persons having the most inti- mate knowledge of these transactions.
 The charge that excessive salaries were paid to officers of the Equitable is not directly answered, but admission is made that under the guise of salaries, excessive fees were given to certain Equitable officials, who were also di- reetors in other companies. In defense the answer states that these practices were not known to the whole board of directors.
 Outlining their belief as to the best policy to pursue in fixing the blame for the Equitable scandals the direct OTIS say first that the blame for the alleged cases of misconduct will be found to rest on individual officers and not upon the directors as body. Hav- ing made this explanation, the answer then admits in a general way the wrongdoings charged. The first charge specifically answered is that premises on Broadway were let at inadequate rental to the Mercantile Safe Deposit company. This Is admitted, but it is denied that at the time this lease was made James H. Hyde, James W. Alex ander, William Alexander, Gage B. Tar bell, Valentine P. Snyder Thomas D. Jordan, Charles B. Alexander, Henry R. Winthrop, Alvin w. Krech and Will liam H. Mcintyre were stockholders and directors in the Mercantile Safe Deposit company.
 With certain reservations, admission is then made that the capital stock of the Missouri Safe Deposit company was acquired by the Equitable society, which paid $250 per share for shares of par value of $100. The reservation in favor of the Equitable in connection with this charge include claim that these aleSdLlOnS are true III respect LO certain of the Equitable officers, but that the alleged purchasers were not even known to the whole board of di- receors.
 As to excessive and unwarranted loans to agents the reply admits that they were made.
 The directors further admit that the officers who permitted waseful, improv- ident and improper advances of money to agents may have been guilty of grave errors of judgment, but assert that they have no information sufficient to form belief that these officers were knowingly guilty of such improper acts. Instances are mentioned in which the system of making advances to agents is necessary and proper within reasonable limits.
 The consolidation of the Western Na- tiunal bank of New York with the Ma tionaI Bank of the United States of New York, by which money loss re- suited to the Equitable society and a
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