The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-15
USE OF SURPLUS IS
NOT APPROVED OF
Redistribution Is Cause of An.
other Action Against the
Equitable

NEW YORK, April 14.-Complaint
was made to Justice Blanchard in the
New York state supreme court today
mat the Equitable Life assurance So
cie'y has failed TO distribute it's sur
pius as provided by its charter, that
the surplus has been improperly used
ana mat the naturalization of the COM
pahy VII! do injustice to the policy
hoiders. The court was asked to issue
an order restraining State SuDerinten-
ueht or insurance Hendricks from talk
ing Iurther proceedings toward mu-
tualization.
Inc action was taken by A. f. Wood
r =, OF this city on behalf of Herbert
". i ulI OF Philadelphia and other policy
hoi9ers and is incidental, Woodruff
Sotu' 10 d suit against the society to
ueterimne whether or not the policy
holuers nave any right to the societv's
oui Plus ana 10 determine the market
value of the stock. Supt. Hendricks
was asked in the complaint to show
Sause on April Is why he should not
De stayed from all further action to-
ward mutualizing the society
Fear an Injustice
The complaint. Mr.. Woodruff said is
that "a naturalization plan means in
Surance at cost and that after deduct
ing the expenses of conducting the
business all the profits and assets of
the company belong to the insured
The principle of mutual insurance uDon
which this defendant company has
been organized and been represented to
be conducted required that policyhold-
ers have a return of their overpay-
ments out of the surplus of the COM
pany at such short intervals as will in
cur forfeiture or cOnfiScation TO the
least number. The society has failed
TO carry out the principles upon which
1t was organized and the plaintiffs are
OF the opinion that the proposed
amended charter will do an Injustice
to the policyholderS"
1t is also alleged that by reason of
the society's failure to carry out the
provisions of the charter in reSDect to
the distribution of it's surplus a very
large surplus has been accumulated.
1t AYERS that because of the ability or
the officers to manipulate and use the
same for their own personal interest an
Idea which was without foundation
arose in the minds of some of the
stockholders that they had some right
or ownership in the surplus By rea-
son of this unfounded idea the COM
pany has permitted its surplus to be
diverted from its true intent and pur-
pose and has permitted 1t to be used
py some OF its officers or by others in
way entirely foreign to its proper
use.
Denied a Hearing
Mr.. Woodruff said that the policy
holders had endeavored to obtain a
hearing from the state superintendent
of insurance, but that he had refused
Justice Blanchard, being policy
holder, declined to entertain the appli-
cation Of Woodruff and referred the
matter to Justice Scott, who issued an
order to Supt. Hendricks to show
cause on April Is why he should not
be enjoined from aiding in the mutual
iaztion of the Equitable society.
Henry c. Frick, chairman of the
committee conducting the investiga-
ton, has selected as his principal as
sistant F. A. Haskell, president of the
Carborundum company of Niagara
Falls, who is well known as an auditor
and mathematician.
A De Navarro and the estates of e.
w. Lambert and Malcolm McMartin,
all of whom hold stock in the Equi-
table, were granted leave to intervene in
the action brought against the society
by Franklin B. Lord, by Justice Mad
dox in the supreme court in Brooklyn
today.