Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-04-11
ATTORNEY MAYER
Will Wait Before Passing Upon Equit'
j, able's Charter.

~ !, able's Charter.
eral Mayer will not pass upon the amend
ed charter of the Equitable Life Assur-
ance Society until the issues have been
passed upon by Justice Maddox in the
action brought in the supreme court at
| New York by Franklin b. Lord as an IN
dividual stakeholder. He said. this af-
ternoon. that the superintendent OF IN,
surance had forwarded the amended
| charter to him, this morning. He added
| that the superintendent could not grant
the certificate of authority until the char
the attorney general He said
Il have received communication from
| counsel for Mr.. Franklin b; Lord.
stakeholder in the Equitable Life Assur-
ance Society. enclosing copy of the pa
pers upon which they are moving before
| Mr.. Justice Maddox. From an examina
| legal questions which are before me for
consideration will likewise be before Mr..
| Justice Maddox.
1T would seem proper to await the
| decision of Mr.. Justice Maddox insofar
as it may relate to the questions which
are similarly before him and before me-
| Any other course would be, to say the
least, discourteous to the supreme court
One in a position to know said. today,
that there was an effort on Saturday on
| the Part Of both the Hyde and the Alex
ander factions to get the attorney general
to expedite his action in the matter; they
| were advised. however, that he would
| act upon the issues when brought before
him only in the regular and orderly
| Further. the action of Mr. Lord is re-
| garded here as indicating a movement
on the part of the stockholders as such
to conserve what they regard as their in
| terest in the surplus of the Equitable as
| distinguished from questions of control
| of the society through majority stock
| ownership, as in Mr.. Hyde's case, or or
government by the policyholders and in
| the contentious represented by President
Alexander.
| Attorney General Mayer admitted. to-
| day, that the case involved those three
issues, but he would not discuss them.
New York. April 1O-The hearing, in the
application of Franklin E. Lord; tne
stakeholder of the Equitable Life Assur-
| ance Society. for an injunction TO re
strain the officials of the society IRON
PLAN was resumed. today, before Justice
Maddox in the supreme court. BrooklEH.
Samuel Untermyer, counsel Tor James n.
Hyde and William E. Mcintyre, respect
| lively first and fourth vice presidents OF
the society. asked leave TO intervene. re
| said the interests of his cllentS were
vitality involved and they sh9ui "a H th op,
pOrtunity to present their SIDE Oh the case
| before the court should reach decision
Justice Maddox granted two days Tor Mr..
| Untermyer to file n brief or appear again
in person to argue his motion TO inter-
vene. ,,
| Lord, then addressed the court, setting
| forth that Mr.. Lords interests would be
Inreiudicially affected if the naturalization
plan became effective. and arguing that
| the officers of the society should be en-
| Joined from putting the plan into opera
| ton.
| Mr.. Shepard in support OF Mr.. Lords
contention against the plan OF mutual-
cation. said:
of the stockholders cannot be taken
away without due process of la" Ana
| even if the power of amendment OF the
charter were given to the board. winch
/ it is not, power to amend the charter Is
not 4 right which allows the destruction
of the rights of the propertyholders.
| He declared that the present charter OF
the Equitable was unalterable and una
ms ndable and provided for a sls per cent;
| dividend each six months. 1.-THE plan Of
TIE Equitable he said. sis a mutual one
the shares of which are to be applied TO
the purchase of annuities. The safeguard
| of the company lies in the body of stock
| holders. In 1904 there was surplus Oh 4
$50 OOO, 900. and after the most liberal pro-
| vision for liabilities there still remains
sum of $4,000 900.
Mr. Shepard declared the amended
charter would permit the Equitable sur
plus to get into the hands OF men VINO
did not care anything about the policy
holders interests. Whereas. now 1T re-
| oured 5000 policy to entitle man 10
amended charter the agent could so draw
the policies that one could take OUT 81
500 policies. instead of one $500 policy,
| and thereby have 80 votes
| William 3. Hornbower. representing
the Equitable Life Assurance Society,
replied to Mr. Shepard. He said he rep
resented no individual officer or director
hut the society at large. Upon the al,
vice of counsel. Mr.. Hornblower said
lFresident James w. Alexander had made
no statement relating to the controversy
between the officers He had however,
made an affidavit in reply to various as
sertions upon which the Lord suit In the
courts was based.
| Mr.. HornbOwer then read to the court
an affidavit signed by MIR. Alexander IN
| which the latter denied that the mutual
izaticn OF the Equitable had been erected
because of any rivalry between the on
GERS of the company. Mr.: AleXanGer
II stated that so shares out OF total o.
1900 had voted upon the proposition ana
had decided in favor of naturalization
| Continuing his argument, Mr.. Horn,
blower said the 1000 shares OF stock nad
absolute control of the company : inter
n ests He declared the stockholders were
entitled to their per- cent DIVIDENDS anu
would continue to receive them NoIhing
would be taken from the owners OF the
stock except the right to vote tor some
of the directors. Mira HOrnblOWer contro-
verted the contention of Mr.. Shepard that
the legislature has no right TO after or
repeal a charter unless the original chir-
ter shall contain such a provision.
An adjournment was taken at CLOCK
until tomorrow. when Mr.. Hornplower
t1x.;n n Tp