The Montgomery advertiser., 1905-08-01

(C0nfImUG0 Hf0m IA80 Omp.I
 warranted sums of money on deposit with the National Bank of Commerce New York, the Mercantile Trust Com pany of New York. the Equitable Trust Company of New York. the Commer- cial Trust Company of Philadelphia and at least nineteen other banks and trust Dmpanies, in some or all or which the individual defendants or set of them were stockholders. directors or ofacers, which sums were deposited at inadequate rates of interest. instead of investing them in proper and re- munerative forms of investment ana permitted said defendant society reg uiarly for a number of years past to conceal this fact and mislead ana oe- ceive the policyholders of the society in respect thereto by annually. on De- cember 27 to 29. loaning approximate ly S1O.000,000 on collateral security, which said loans have been regularly called in again on January to fol- lowing and the funds re-deposited In the Repositories from which they had been temporarily withdrawn for this purpose
 Jusxling With stock.
 It Is charged that when on January 1902. an increase in the capital stock of the American Loan and Deposit Co. from 3500,OO0 to 31,0U0,000 was author ixed, the value of the stock being $1b0 per share. and each stockholder being entitled to subscribe for one additional share. the Equitable Life. which was entitled to take 2.333 shares. only elected to take 665. the balance being taken by James H. Hyde and w. W. Mcintyre. trustees. and Annie F. Hyde, and by other directors and mem bers of the Executive Committee. It is further charged that when the name of the concern was changed to the Equitable Trust Co. and further increase from S1.oo0.oo0 to ss.ooo.ooo was authorized. the defendant society purchased 15.6ss shares at $500 per share. the actual value being only S3s333 per share These statements, 1t Is charged. were made by the de- fendants ''to their own profit and that of other persons and to the loss and damage of the defendant society"
 After reciting that the society has at the end of each year caused bal ance to be struck purporting to show the net surplus earned during the pre- ceding year, the complaint says:
 But at no time during the period in which the individual defendants or any of them have been directors or of- ficers of the defendant society has the society or it's officers. either within sixty days from the expiration of each period of five years subsequent to De- cember 31, 1859, as provided by the charter, nor at the expiration of each year, as permitted by Chapter 100 of the laws,of 1872. credited. or paid. or applied. or permitted to be applied. an equitable share of the net surplus to or for the benefit of the persons who. during the period in which the indi- vidual defendants or any of them were directors or officers of the defendant a~A nnltov- holders aAd in violation and disregard of >the said charter and of law, the defendant society and its officers with the consent and approval and without the prevention or interference of the board of directors have been crediting and paying to the said policyhoiders from time to time only portion of the net surplus earned and held by the society. the whole of which said net surplus the persons who during said period were and still are policy holders of the defendant society and entitled to have credited or paid to them or applied for their benefit in equitable proportion.
 Rules Illegal.
 "PIaintiff further alleges that the rules and regulations adopted and heretofore acted upon by the defend- ant society and its officers with the ap- proval and consent of the society's di- rectors for the ascertainment of the Equitable share of the surplus due to each policy holder were and are in- correct, illegal and improper. and that of the surplus now held or purporting to be held by the defendant society as shown by its statements, a sum ap- proximating $10.000,0 900 Is held by the society. in which said sum the present policyholders in violation of law and the express terms of the charter would have no interest under said rules and regulations The defendant society and the individual defendants, as off, cers and directors thereof, have held