The San Francisco call., 1905-08-26
EQUITABLE
JOINS WITH
THE STATE
Asks That Charges
All Be InveS-
tigated.
Directors Make Answer
to Allegations of
WrOngdOing.
Claim That Blame for Mis-
conduct Rests on Indi-
Vidual Officers.

NEW YORK. Aug 25.-The Equitable
Lie Assurance Society to-day joined with
the State of New York in asking for a
full investigation in court Of its directors
and officers. and their alleged wrong
doings in managing the moneys of the
society. The document which announced
this determination was the answer of the
forty-nine Equitable directors to the
charges against them by the State. Ad-
mission is made that the Equitable had
been guilty OF improper acts. Among
these answers they admit the $3.50. 600 loan
TO the Depew Improvement Company.
They admit the S6S5 600 loan OF the Mer-
camille Trust Company. but waive re-
sponsibiity in this loan so far as the
board OF directors is concerned, and in
dicate Messrs. Alexander, Jordan and
Deming as the persons having the most
intimate knowledge of these transactions.
The charge that excessive salaries were
paid TO officers Of the society is not di-
rectly answered, but admission is made
that under guise of salaries excessive fees
were given to certain officials. who were
also directors in other companies.
IN defense the answer states that these
practices were not known to the whole
board Of directors.
INDIVIDUALS TO BLAME.
Outlining their belief as to the best pol
icy 10 pursue in fixing the blame for the
scandals. the directors say first that the
blame for alleged cases of misconduct
viii be found TO rest on individual Of
hcers. and not upon the directors as a
body. Having made this explanation, the
answer then admits in general way the
Wrongdoing charged.
The nrst charge specifically answered
is that premises on Broadway were let at
inadequate rentals to the Mercantile Safe
Deposit Company. This is admitted, but
fc faf ar he lease "
made James II. Hyde, J. w Alexander
Gage +. TarbeI. " P. Suyder. Thomas
D. Jordan, Charles 3. Alexander, H. r.
Winthrop. A. ". Krech and William II.
Mcintyre were stockholders and directors
ia the Mercantile Company. With certain
reservations. admission is then made that
the capital stock Of the Mercantile Safe
Deposit Company was acquired by the
Equitable, which paid $3.50 per share for
shares Of a par value Of 500. The reSer-
Vations in favor Of the Equitable in con-
nection with this charge include a claim
that these allegations are true in respect
TO certain of the Equitable officials, but
that the alleged purchases were never
known TO the whole board of directors.
The directors admit that the officers
who permitted wasteful, improvident
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
a belief that these officers were know
ingly guilty of such improper acts.
IMPROPER SALARIES.
The table of alleged improper SAL
aries TO Equitable officers, which was
Embodied in the States charges, is de-
yelared to be a true statement Of the
hgures.
Admissions of greater latitude are
made on the subject of pensions and
to the charges that money under the
guise Of fees was received by directors
and stockholders, who were also OFF,
GERS Of the Equitable and other cor
porations.
Taking up the sss5.ooo loan of the
Mercantile Trust Company, an admis-
sion Of its existence is made, but the
directors deny that they improperly
permitted this transaction
The S250.000 loan to the Depew I'm
propement Company is next admitted,
with a proviso which states that this
admission is restricted to those of the
Individual defendants who were or
ought to have been cognizant of these
transactions"
The charges OF the existence of ex-
,eessive deposits in the National Bank
of Commerce of New York and at least
min neteen other banks are admitted.
The sI0,0oo,0Oo surplus held by the
Equitable Society is the final item con-
sidered by the directors and In sub
stance their reply on this charge is
that they do not know precisely what
their rights are regarding the surplus
and that they are willing TO leave this
,,,a+fa- for fhe courts to decide.