The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-25

per cont. diytdmd8 ana not slOOP Hffhs
a. per the alleged Hartman oher; AM
moreover. the pCdicyholders, through the
naturalization plan which would eventually
give tho policyholders a majority OF the
board Of directors, would control the IN
come fBm policyholder and the invest
nents % the society by vote Of 600 OO
to 1000 the, latter representing the mum
Ter Of ahard, OF stock In the society II
a. case OF 5000 900 which Mr.. Hartman
(. .,id to have offered Mr.. Hyde for ma
tority the stock controlling the go, oOo, 900
i'm annual revenue from policyholders,
the $4,000 900 surplus, t7oOOo,OOO Of which
Is represented by tontines and the $780,
10000 Of assets. ~
tits another case Of the tail wagging the
dog with q vengeance, and that Is one rea-
son. an interesting ons ! think, why 90
many have been into rested 20 learn what
the Frick committee Is 10 report within
MONTH and why most people have thought
Il advisable TO deny that they knew any
thing about the relations, social and hnRn-
cial which exist between Mr. Hartman
and Mr.. Prick Mr.. .Frick tells his friends
that he is TO go b. the bottom Of the Eqm-
tables Affairs and that that II why he has
retained Senator Knox; and that after he
makes his report he Is TO retire "a stock
holder in the society, but hardly think
that is probable
JUDGE GRAY.
II Mr.. Prick were 90 be made president
OF the society he would be open to the sus-
picion that he was Mr.. Hartman and Mr..
Hyde's man. and for that reason the Harrl-
rnan-Hyde people together with certain
members OF the FriCk committee, have
turned 10 Judge Gray. Judge Gray Il 90
wears old. (. a graduate Of Princeton. class
of 80 and a Harvard Law School graduate
He was Attorney General for Delaware
from 1879 TO 1855 and a United states Seha-
tor for his State from 1855 70 1899. lie was
a rneu1her Of President Mcktnley's Peace
Commission az Paris in 1893 and later on
member OF the Joint High Commission az
Quebec. and a member OF the International
Permanent Court Of Arbitration under me
Hague Convention. President Mckinney
gave him in 1899 his present place, life
appontment as United States Circuit Judge
for the Third Circuit.
SUIT TO SEE WHO owns THR SURPLUS.
A bin in equity was filed yesterday In
the United States Circuit Court here by
j Wilcox Brown Of Maryland and others
against the Equitable Life, asking for an
accounting and for the appointment OF a
receiver for the surplus. The bill Is signed
by Dos Passes Brothers, Battle Marshall
and Joseph de F. Junkin, solicitors Tor
who Is a resident Of Baltimore, rays that
he has held a $4,000 policy since 1857 and
that he elected 10 apply hls share OF the
surplus Of the society 10 the reduction Of
his premiums. He alleges that ar the out
ret be did obtainza substantial reduction,
but that subsequently his reductions
amounted 10 scarcely anything. He AYERS
that the officers Of the society. in violation
Of the charter and the Law, have not appor-
toned 20 his policy its share Of surplus.
and that their due share Of the surplus has
been withheld from him and others, not
with a design to administer the Affairs
Of the society prudently, but with the pur-
pose to pile up large fund TO which the
society and the stockholders could assert
ownership in defiance Of the charter and
the law. The society and the stockholders,
he says, have s Fsoent!y 81 forth tbs claim
- the, property Of the policyholders, and
they int end 20 continue 20 appropriate TO
themselves portion OF this surplus.
lie AYERS further that the administration
of the funds Of the society has been un-
lawful that the officers OF the society have
present interests which are adverse 70 the
Interests OF the pOlicyholders; that some
Of The officers are interested in banks, cor
pOrations and syndicates with which the
society is connected. and that the society
h not proper conseryator of his funds.
In the ball Mr.. Brown estimates his
damage at s., 900, and alleges that it will te
much more IL the present course Of the
society IL not restrained. For relief he
asks that an injunction be issued prevent
ing the society from further Withholding
the surplus funds; that the society pro-
duce all its reoo rds that an accounting be
taken: that a trust be declared 20 be- in ex-
istence; that the polCyho lders be credited
with their proper share Of the surplus az
dete rmined by the accounting, and that
a receiver be appointed Of the surplus
fund TO hold the same pending an ascer-
tainment Of the sOciety's rights.
Battle 4 Marshall, counsel for the plain
tn said yeste rday.
1T Is the intention OF this suit. among
other things, 20 test this claim by one Of
the Office r. o Z the society, that imInemo nal
precedent has established his right 20 have
an interest both IA seller and buyer in se-
curities sold TO the society and TO ascer-
tain whe Their it Is IN ACCORD with the preoe-
dents which 20 We m courts OF equity and
grand junes.
The plaintiff policyholders do not think
that an investigation either by the Su-
peTintendent Of Insurance OF by the dirVc-
tors Of the society or by the agents Of the
society will accomplish what Is needed
They believe that the investigation should
be conducted on principles reco gnizing that
they are no longer dealing with trustees
with the int rests Of the policyho lders at
heart, but are confronted with the imme mo
nal custom that permits these trustees
20 make per-Onal profit from the admin
istration Of their trust The suit, il sue
cessful, will not In any way disturb the 10
Ctety's asset or investments or alter the
contracts Of insurance now outstanding.
IL will simply require this society to credit
n each pohcybolder his just share Of this
surplus. bring the - ciety back % its proper
mutual uses and functions and "a Ike out OF
the custody Of its paltry 500 600 OF capital
the Use and the control OF the vast sum OF
over 100000, aCcumulRtions belong
ing to the polioyholde m, which for years
past these stockhO ldeTs have practically
treated their own, and TO which, or "A
large portion Of which. they now actually
Rdvance serious and dangerous claims OF
ownership
SIMILAR ACTIONS EXPECTED.
Il was reported that policyholders ia
Ohio had reta ned Senator Foraker and
others in Wisconsin Senator SpoOneT. with
q view TO bringing actions in the Federal
courts 70 put tina surplus Of the company
in the hands Of receiver pending an in
vestigation Of the allegations that the
funds have been mismanaged.
Argument on the application made by
A. Edward Woodruff on behalf OF Herbert
g. 'Tul, for an Injunction restraining the
officers and directors Of the Equitable
life and theState Superintendent Of 'Insur-
Enoo from carrying the proposed amended
charter into elect. was resumed before
Justice MHcIeaH in the Supreme Court