The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-24
EQUITABLE FIGHT IN COURT.
COMPANY'S LlWTERS VIM At
rack THE HYDE PETITION


And Ask 10 Have References TO President
Alexander Stricken Out-Genera
Agents Take Issue With GOV. HIgElni
About Remedies without LeElsintl ton
There promises to be an interesting
hearing before Justice Maddox In the Su.
preme Court In Brooklyn this morning
when counsel for the Equitable s)ciety
will object to certain references to Presi.
dent Alexander contained In the pet II ion
filed by Samuel Untermyer on behalf OF
Mr. Hyde in the Lord injunction suit. The
Equitable counsel, It was said last night
would seek to have these references stricken
from the petition. Mr.. Cntermyer will
not consent to this, and will. II necessary,
/ 1t was said last night, argue in defense
Of leaving 10 the things said about Presl.
! dent Alexander.
The references which are most offensive
10 the Equitable attorneys, II was said last
night. are those which charge that the
contention Of the Equitable counsel that
the naturalization plan was passed by the
society's board Of directors without regard
to the consent Of the ma jorty Of the stock
il inspired solely by Instructions Of Mr..
Alexander assuming to act in his capacity
GOnIIOl
position Of the society In this respect q"
The lawyers representing the Equitable
object also II was said. to the statement
that the news Of the service Of the papers
In the Lord injunction suit was withheld
from the EQuitables board Of directors
with the knowledge Of Mr.. Alexander.
They object too, to the statement that Mr..
Alexander has taken a position hostile
a landing n in 3
the value VI the subject thereof he
Equitable will be represented at The hearing
to-day by William B. Hornblower, William |
y. Cohen and cambridge Colby.
Members Of the committee Of general |
agents which called upon Supt. Hendricks |
and Gov. Higgins gave out last night "a |
statement Of Facts which they said would /
be submitted to Gov. Higgins in reply to
his assertion that the correction Of the |
conditions in the Equitable is a matter for [
tho courts and not the Legislature.
In the statement the agents say that
the insurance laws Of New York State
do not define the stock rights Of Organiza-
tons doing business under them In a suf-
ne1ently clear manner. The equity, they
assert, has been left 10 be determined by
the usual construction Of corporation law
as to the stock rights involved. II IA in
this deficiency Of the insurance law that
the root Of the present evil lies, and not
only the necessity but the obligation Of
the State TO remedy the evil.
The origin of the present controversy
In the Equitable, the statement declares,
lay not in personal ideas or characteristics
but in the fact that public criticism Of the
actions Of an official gave rise TO questions
that, regardless OF the guilt OF innocence
Of this official, found their only solution
10 regards relief from threatened injury
10 policyhOlders In such naturalization as
would give the policyhoders the upper
hand in the mana cement.
- -
amendment cannot be made without the
consent Of a majority Of the stock the
obvious remedy of the present situation
he statement says, lies In an amendment
Dr. addition to the insurance laws OF the
State providing clearly that life insurance
corporation with stock, in which the charter
limits the profits Of the stock and provides
or the conduct Of the companys business |
IN mutual plans, shall and must be con- (
idered a mutual company, and that the /
Of the stock, il retirement OF its !
imitation In the managerial representation
hall be optional with the policyholders on
he basis Of a majority vote.
II was emphatically denied yesterday
or Mr.. Hyde that he had, as charged by !
IN anti-Hyde lawyer, spent $4,000 annually
tut OF the societys funds for personal
ervants and tl2, 900 for travelling expenses. :
u course there are, this man said, little
1penses in connection with the conduct {
4 the society's business which Mr.. Hyde I
ad Hghtfully charged TO the society, but
% had never, this man said, paid his eI-
enses to Europe or other travelling expenses
personal sort out Of the funds OF the
ociety. 4