Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1905-08-31
EQUITABLE ANSWERS
Board Of Directors Reply to Charges
~ by the State.
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NANY ADMISSIONS OF IMPROPER ACTS
JOln with New York in Asking Eau
A. Investigation I'm Court OF
It's OnlceRs and
Their ActS-

New York. Aug. 26.-The Equitable
Lie Assurance society Friday Joined
WITH the state Of New York In asking
Tor a full investigation In court Of its
directors and officers and their alleged
wrong-doings in managing the moneys
ce the society. The document which
announced this determination was the
answer Of the 40 Equitable directors
60 charges made against them in con-
nection with q suit brought against
che Equitable Life Assurance society
by the state.
I. Admission is made that some oficiais
Of the Equitable have been guilty OF
improper and Illegal acts. In all 10
charges are answered by the DIRECTORS
Among these answers they admit the
$3.50 900 loan to the Depew Improve
ment company. They admit the $685."
600 loan OF the Mercantile Trust COM
pany but waive responsibility In this
9oan so far as the board Of directors
A. concerned and indicate Messrs Alex
ander, Jordan and Deming as the per-
sons having the most intimate know
ledge Of these transactions.
The charge that excessive salaries
were paid to officers Of the Equitable
q not directly answered, but admis-
sion is made, that under the guise OF
salaries, excessive fees were given TO
certain Equitable 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.
Outlining theif belief as to the best
policy to pursue In fixing the blame
for the Equitable scandals the direc-
tors say first that the blame for al
legged cases Of misconduct will be found
% rest on individual officers and not
upon the directors as body. Having
made this explanation the answer then
admits In general way the wrong
doing charged.
The first charge specifically answered
a that premises on Broadway we're let
at inadequate rentals to the Mercan-
Gle Safe Deposit company.
with certain reservations, admission
"a then made that the capital stock OF
che Missouri Safe Deposit company
was acquired by the Equitable society
which paid $3.50 per share for shares
q a par value Of 500.
Az to excessive and unwarranted
loans to agents the reply admits that
ehey were made.
The directors further admit that the
O1lcers who permitted wasteful, i'm
provident and improper advances to
agents may have been guilty Of grave
ERRORS Of Judgment, but assert that
they have no information sufiicient to
GOrm q belief that these officers were
knowingly guilty Of such improper
acts.
The table of alleged improper salaries
% Equitable officers, which was en-
bodied in the states charges, is de-
elared to be a true statement Of the
@gnres.
Admissions Of greater latitude, how
over, are made on the subject Of PEN
sions and to the charges that money
under the Rulse Of fees was received by
directors and stockholders who were
simultaneously officers Of the Equit-
able and other corporations.
The s25O,OOO loan to the Depew I'm
provement company is admitted, with
. poviso which states that this adj
mlssion is restricted to those Of the
individual defendants who were, or
ought to have been, cognizant Of these
transactions"
The 100000 surplus held by the
Equitable society is the final item con-
aidered 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
A A.