The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-02-20
THE EoUITABLE's AFFAIRS.
Doctrine or Corporate Rights Ingeniousl,
Applied to the Case In Point.

To rHR EpIToR or THE SuS--Sir In
these days OF tanning through Legisla-
latures and Congress what appears 20 certain
enthusiastic leaders OF thought and action
10 be right / have been pleased 10 notice
that rHR Sun has maintained It's right to IT,
own application OF the old saying, Tue SrV
shines for All Day after day the editorial
page has fairly beamed with the light Of
sturdy wisdom. while certain Congressman
and the press generally have lined up at the
suggestion OF the Administration and the
House has passed n railroad bill which. by
liza broad provision would take from the board
OF directors OF corporations generally tie
right TO manage their own corporate AFFAIRS
To-day, however. In referring to the strug.
gle for control OF the affairs OF the Equitable
Life Assurance Society you say That the
personal and corporate control has served
to conceal fagitious acts done in tho Interest
OF those managing tho corporation we do
not mean TO assert or imply. but that such has
been only too possible ts made plain by the
doubt which Is universally expressed that
the board OF directors will consent 10 gran,
the policyholders the right to vote on matters
which vitality concern she administration OF
their own property.
According to your own statement, tho Foul
table Life Assurance Society IL stock cor
porntlon IL was organized years ago. and
Henry Is Hyde. by energy and ability Of a
very high order. built up l. business, under
the laws OF our State. Of mammoth proper
lions. BY keen foresight hs acquired and
held on to the control OF tho business no gath
cred about him, which in course OF time was
bequeathed TO his son and heir, careful pro.
vision being made for the handling OF thi,
immense power until his son should come
TO sufficient maturity to accept tho great re-
sponsibiIty thus entailed.
The contracts with policyholdets havs
clearly defined their rights and by their
signatures thereto these pollcyhollefs agreed
to the provisions therein contained Now.
In view OF your position az to corporate rights
in railroad propertieh how can you s1y with
regard 70 these pollcyholdets 'rIght to vote
should they expect such right2 Al What
mutual benefit organization. TO be managed
and controlled by It's memberst AZ what
time did the property OF the stockholder,
become the property OF the polioyholdeTs'
II II IL still stock corporation, as IT, founder
evidently intended II should he. what righl
have trusted friends or policyholders 70 thse
over the management to thenlse lvest So
long as the company carries out ts contract
with the policy holder, and carries he reserve
future. has the policyholdsr any more, right
to enter the domain OF management and own
ershlp than the depositor In the commercial
for railroads? By the same process OF reason
ing might not the deposltors In the Chemical
Bank, for instance. with whom the corpora
"A certain contract under Government super
vision make up a combination and clamor
for voice in the management II mol
why not!
There are many mutual insurance com.
panies. Tho Equitable is not one. 30 doubt
ia pad in capital stock was considered an
asset OF Importance which differentiated II
from purely mutual companies in the early
days and gave Il start In building up IFS
business. Can this corporation feature now
Do dlnegarded at the within OF policyhoders
merely because certain directors or agents
begin to realize the possibility OF the con.
trolling spirit voting them out OF oflce7
Explain the line OF difference ruling u this
corporation. and your oft repeated double
shotted day TO day arguments against tho
publlo's invasion in the railroad held and
the consequent swift following OF the masses
into socialism and revolution
JAMAICA, Feb IS S. r SMITH
The argument is both taking and ingeni-
Gus. We would permit ourselves, however
to discriminate between the constitutional
rights Of property holders and the claims
Of the public as We would between the
moral equities of policyholders and power
OF stockholders of improper proclivities.