The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-08
SURPLUS is POLICYHOLDERS'
so iLEXANDER Says, AND CITES
ACTUARY TO PROVE >IT.

This Was the ElueF htuoh Wow van Csc
siy p President OF the Equitable
warns Agents Not to Believe Ru-
NOR, That He IL About 20 Resign.
letter written by President James W.
Alexander Of the Equitable Life Assurance
Society TO the Pittsburg general manager
If the society, In which he comes out with
the fatfooted declaration that every penny
Of the Vquitable's $50, 900, 900 surplus belongs
10 the polcyholders. was made public last
night
Mr.. Ale1ander's letter includes one from
J. G. Van Cise, the Equitabls's actuAry In
which Mr. Van Ciss not only agrees With
President Alexander's views but also states
that Henry B. Hyde the father Of James
Hazen Hyde, regarded the surplus az be-
longing exclusively 10 the policyholders.
President AleX9nder's letter Is a reply
10 the demand made by the general agents
AZ their conference in this city recently
for definite statement on this subject
+ is intended also as an tflcial answer
~ the contention that has been made in
the Lord Injunction slit that the mutuali-
ratio Of the company would deprive the
stock Of certain Of it's property right
end as a refutation Of the assertions made
nv Mr. Hyde that Mr.. Alexander, by fur
thering the cause Of naturalization, has
acted disloyally in that he ha deprecated
the value Of the state Of which he was
trustee This letter being the first Official
declaration on the subject it is expected
that it will figure prominently in the suits
for a division Of the society's surplus.
Here j. the letter:
NEW YORK. May @, 1905.
"Ed,fqrd A. Wood Esq Mona er Of the
Equitdble Life Assurance Society, Pitts
burg, Pa.
MY DEAR Mr.. WOODS: beg to acknow-
ledge the receipt OF your pamphlet con-
tanning extracts from official statements
by the society as TO the mutual plan Of its
business and the exclusive ownership by
the polcyholders Of it's surplus. also
note your request that, as president Of the
society. confirm substantially the state
ments it contains. l recognize that, for
the benefit of present and future policy
holders OF the society, there should be at
this time some clear and unequivocal ex-
preston on this subject, and, without re-
viewing all the society's statements on
this subject, consider that there can be
no doubt as to three facts:
has been conducted in accordance with
It's charter since the date Of its organiza-
ton, on the mutual plan; second, that the
profits Of the society have been accumu-
lated for its 20 10 holders and. third, that
the surplus Of the society is held for the eX-
elusive benefit of its policyholders.
Il do not recall any serious question
having ever arisen on these points until
he.
ward on behalf Of the stock which Is at
variance with the terms Of the society's
charter, the uniform course Of its business
and all its official and unofficial statements
and representations.
Ills is not merely my own understand
ing and opinion, but is confirmed by Mr..
Van else, who, as you know, has been
in the service Of the society for nearly
forty years, most Of the time as its actuary.
No one connected with the Equitable needs
10 be told OF the great authority and dis
tincton which Mr.. Van else has won as a
life insurance actuary. His official posi-
ton in the society Is one Of complete indie
pendence, and on every subject pertaining
10 the society's business which is Of a
scientific or mathematical character he Is
regarded as an Unbelievable authority.
i quote a letter written by Mr. Van Else
70 Mr.. +. A. McNamee, the society's mana
ger at Albany, y. Y, in response to formal
Inquiries from the latter on the subject of
the surplus. / understand these inquiries
were made pursuant to resolutions adopted
at recent meeting Of an organization Of
the society's managers and agents. hr.
Van Cise's letter is as follows:
May s. 1906.
p. \. McNdm,ee. Permanent secretary, AZ
bduH. Aer York
~ met, with copy Of preamble and Eesou'
tons enclosed, was duly received and con-
As an officer Of the Equitable Life A.
tvrlHce Society. fully agree with you as N
the truth OF the following statements IN re.
Il That the business has always been, and
must always be. conducted on the mutual
.. That the entire surplus belongs TO policy
g That each participating policy will re-
ceivo It's due share Of surplus pTonts 10 ac-
oordance with the terms of each contract.
respectively.
= That the agents in soliciting business
On this basis have acted with due authority.
3. That the polioyholders have no ground
III ihls connection / would say that while
have been connected with the EQUITABLE,
~ clerk and officer, for nearly thirty-eiight
!cars, ! have never until recently, heard OF
any questions being raised as 70 the absolute
oEnershi9 Of the surplus Of the society by It's
lolcyhOlders
For about thirty years had the. privilege
OF being associated as one OF the suOordlnate
tUlcers with Henry Is. HYDE the lOuhueI anu
late president OF the society. and my recol-
lection is that In his declarations, both verbal
and in writing, he always stated that the bust
hess Of the Equitable was transacted on the
mutual plan and that the stOckholders could
not receive more than the dividend OF $1,000
per annum on their capital stock, winch was
provided for by the charter,
Mr.. Hyde always directed me 70 appoTton
turplus to DOlicyholders. when entitled by
their contracts 10 such apporuonment, on
the basis OF its all belon Ring to pohcyholdere.
end he was very much averse 20 any reduc-
ton Of dividends unless such reduction ives
found 10 be absolutely necessary IN accoru-
buce with our eNneTienCe. 81,
As aCtUaTy and assistant actuaTy Of me
90 citty, ! have had special charge during
more than twenty-five years OF the appoT.
Torment Of surplus 20 holders OF deferred
dividend contracts 1T the end OF the " dividend
periods. and In making such apportionment,
have always proceeded upon the assumption
that the entire surplus OF the society belonged
20 lie poliCyholders.
both complete and satisfactory, l remain
-. G. VAN CIsE, Actusry.
These statements are literally truet.
They should set at rest all doubts, and quiet
an agitation which should never have
arisen and l. naturally disturbing TO the
society's polcyholders and agents.
No greater emphasis could be given 70
the fact that the Equitable Life ASSURANCES
Society Is really a mutual life Insurance
In, ha fufaryaata n ND T1Ghtg