New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-09
TIES UP NATURALIZATION.
LORD EQUITABLE SUIT.
Complaint That Plan DepriUes
Stockholders of Surplus Rights.

into the Equitable tangle came another complica-
uon yesterday, when lawyers for Franklin b. Lord.
houer OF thirty-sx shares OF Equitable stock, en-
tered suit before Justice Maddox, in the Supreme
Court Brooklyn. for injunction preventing the
omcers and directors of the society from carrying
out the naturalization plan decided after
much travail. Mr.. Lord. a minority stakeholder
protests against the surrender Of the rights Of
stockholders to pollcyholders.
he believes that the giving Of twenty-eight places
IN the board OF directors TO poIicyholders is de-
pflVlng the stockholders OF the right to certain
proportion Of the society's surplus. He would put
1t out of the power Of the directors TO amend the
charter without the unanimous consent OF the
stockholders
Argument the motion for an injunction was
not heard yesterday. Edward NJ. Shepard and
Henry De Forest Baldwin appeared for Mr.. Lord.
ana William B. Hornblower. cambridge Colby and
ex-Judge Cohen. who are the lawyers OF President
Alexander for the officers Of the Equitable who
are the defendants. Mr.. Hornblower declared that
he had not had time to familiarize himself with
the papers, and that while he was ready to pro-
coed In argument the questions Of law involved
In the amendments proposed to the charter. there
were questions of fact to be taken up in the am
davits attached to the moving papers in Mr.. Lords
complaint which he could not answer without
preparation. Justice Maddox adjourned the case
until o'clock tomorrow afternoon. In the mean
time he issued order forbidding the officers or
directors Of the Equitable to put into effect the
plan of naturalization.
IA lilS argument between GlG. EOInDlOWeT ana
Mr.. Shepard there a heated tilt over the
putting Of the naturalization plan in the hands OF
Superintendent Hendricks. Mr.. Shepard declared
that he ready to adjourn argument the
motion, but he wanted assurance that the mutual
ization plan wouldn't be jammed through in the
mean time.
''We make no stipulations." replied Mr..
Hornblower. for we don't know what tina State
Superintendent Of Insurance will do about the
plan"
Franklin B. Lord is a lawyer. the OF the
personal counsel Of Henry B. Hyde, founder Of
the Equitable. From him he inherited twenty
three shares OF the socety's stock. and bought
thirteen other shares at various times. BecauEe
OF his fathers connection and his own frendh-
ness with the Hy6es it was declared yesterday
that his suit was brought in behalf OF the Hyde
party. who desired IN this way to block the mutual
ization which had been forced on them. This was
denied by Mr. Lord himself. who said he brought
the suit only to protect his property rights.
It was denied at Mr.. Hyde's Office. where it was
said that he knew nothing about the suit. and 1t
denied by directors in his confidence. who de-
cared their belief that he would have appeared
IN court to defend tho suit if it had not named
President Alexander head Of the society.
In his complaint Mr.. Lord asserts thai. accord
ing to the Equitabe's charter. only by vote of
three-fourths of the directors may the right to
vote be given to hclders of 3 policy for $500. The
society has some $50 600 policies. the majority
of which for less than 5000 Its surplus ex-
ceeuS SSv,UOOOJU ms surplus BeyOnO a per cent
dividend should be Paid to the policyholders at
the expiration Of their tOntine periods. the COM
plant says That the plan of naturalization made
provision for the Incidental naturalization
Of stockholders" which point had been 'lost in
the shuttle" according to of the directors. was
q complaint OF Mr.. Lords.
He holds that to grant places in the directorate
TO tWenty-eight representatives Of pohcyholderS
would be not simply diluting tho power Of the
stockholders. it would be virtually taking away
from them all their power, since the majority of
the board would be pOlicyholders' representatives.
As a stakeholder whose money went to build up
tho company, he holds rights in dividends and a
certain proportion of the surplus of the society, 10
which surplus the polcyholders also have certain
rights. To iacreass their rights without remunera-
ton to him would be an injustice. While no other
stOckhOGer is represen ted in this suit others have
expressed to Mr.. Lord their appreciation Of his
course
This development caused some confusion among
through the naturalization plan Senator Depew' g
committee Of four representlns the directors, was
to have held meeting. The meeting was post
poned to await the result OF Mr. Lords action.
The committee will meet tomorrow, when it will
get into communication with Superintendent Hen
bricks at Albany. 1t is expected that he Will have
decided by that time whether not TO give his
approval to the naturalization plan.
If he approves Senator Depew'S committee will
go into conference with the Crmmins committee of
poIcyholders to the two directors and the
naming of the four who shall represent the
policyhOlderS in the executive committee.