Los Angeles herald., 1905-06-20
EQUITABLE TO
Be OvERHAULED
PAUL MORTON SETS ON FOOT
RIGID INVESTIGATION
SPECIAL ACCOUNTANTS HIRED
Explicit Instructions Are Given That
Every Detail Of the Work, In.
vestments and Expenses, Be
Fully Reported On
BY Associated Press

| BY Associated Press.
NEW YORK, June ia new and
important investigation of the affairs
of the Equitable Life Assurance So
ciety is to be begun at once. Paul Nor
ton, the newly elected chairman Of the
board of directors, wants to know ex-
actly how things are with the society
and has commissioned Price, Water
house & Haskins and Sells, chartered
accountants, working together, to ex-
anime every detail of the work, in
vestments and relations of the society.
The letter sent by Mr.. Morton to the
firms employed is as follows: So
Dear Sirs: AS chairman Of the board
of the Equitable Life Assurance soci-
ETY. I want to know the exact condt-
tion of the societyfon June 10, 1905. the
date of my election as chairman. With
that end in view you will please make
Jointly an examination Of the accounts
of the society. You will have access
to all books, papers and records.
"I desire that your report should be
as complete and exhaustive as possible.
Particular attention should be paid to
ascertaining the facts upon these sub
jects:
First: The society's annual expenses,
including legal expenses, advertising
expenses, agency expenses and cost of
securing business.
Second: The real estate investments
of the company. including in the case
of each particular parcel the value at
which it is carried upon the books of
the society: the income which it yields
and the fair valuation of the property.
whether above or below the value at
which it is carried upon the books of
the society. OF necessary real estate
experts may be employed In ascertain
ing the value and income of the real
estate, subject of course to my ap-
proval as to men and terms).
Third: The other investments Of the
society, their character and the cir
cumstances under which they have
been made.
Fourth: The societys surplus and
the books of the society.
Fifth: The methods of keeping the
society's accounts and the respects in
which its accounts may be improved.
sixth: The relations between the
society and the trust companies, banks.
safe deposit companies and other in
stitutions with which the society is af-
filiated by ownership of considera BILE
amounts of stock or otherwise.
Qn the case of every corporation in
which the society has dominant or
important interest, or with which the
society has special relations, the owner
ship of stocks or other than that owned
by the society should be ascertained so
far as practicable)
"Seven: The subjects covered by the
of which Mr.. Frick is chairman. should
be fully investigated.
Eight: When the report Of the New
York superintendent of insurance has
been made that report should be care
fully studied and every matter covered
by 1t or by the relations OF tne COM
missioners should be carefully exam
ined
"The foregoing suggestions are not
intended to limit the scope Of your in-
quiries. which should be as broad as
may be necessary in order to ascertain
the precise condition of the affairs OF
the society. 1 shall from time to time
designate other subjects which seem to
call for special investigation.
1T is important for all concerned
that your investigation should be COM
pleted as promptly as possible and you
will accordingly inaugurate 1t at once
and carry it forward with all possible
yigor."