The Saint Paul globe., 1905-04-11
ARCUESFORM MILFORD
E. Nj. Shepard Talks In the
Equitable Case

NEW YORK, April 1O.-The hearing in
tne application of Franklin b. Lord,
stockholders of the Equitable Life assur-
ance society, for an injunction to restrain
me officers and directors of the society
rom rom carrying through their naturalization
pan, was resumed today before Justice
Maddox IN the supreme court BrookIyn
samuel Cntermyer, acting as attorney for
James II. Hyde and William H Mcintyre
dents OF the society, asked leave to IN
tervene. He said the interests of his
th Tsents We're vitaily involved and that
they should have opportunity to present
their side of the case Justice Maddox
granted two days for Mr.. Untermyer to
n NE brief or appear again in person to
argue MS motion to intervene
Edward NJ. Shepard. attorney for Mr..
s.1u' auufeSSed the court setting forth
Ilat Mr.. Lords interests would be
pTeJudlelally affected if the naturalization
plan became effective. and arguing that
!he omcers OF the society should be en-
uon. Mr.. Shepard said:
we hold that the property rights of stlIa
stockhoiders cannot be taken away with
out due process Of law. And. even if the
power OF amendment of the charter were
given to the board, which it is not power
20 amend the charter is not right which
a1loWs fhN tne destruction of the rights OF.
he declared that the present charter
ol the equitable was unalterable and un-
aameenda6ie and provided for 315 per cent
dividend each six months
The plan of the Equitable" he said "is
a mutual one. the shares of which are
TO oe applied to the purchase of annuities.
body of stockholders. In 1904 there was
surplus of 0000, 600. and after the
most most liberal provision for liabilities there
Sun! remains $4,000, 00o.''
MI Shepard declared the amended char
Ter would permit the Equitable surplus
10 get into the hands of men who did not
interests. 1t would be possible ~lInder-
the amended charter. for the agent so TO
draw policies that the men in control
would be able to snap their fingers at the
policy holders. Whereas now ii required
10000 policy to entitle man TO a vote
Mr. Shepard said, under the amended
cnarter the agent could so draw the pol
lcles that one could take out fifty 500
policies, instead Of one S. 600 policy, and
thereby have fifty votes. The result
would be hurtful Mr.. Shepard declared
William b. HOrnblower, representing the
Equitable, replied to Mr.. Shepard He
said he represented no individual officer
: pom the advice of counsel, Mr. Horn
blower said President James W. Alexander
mad made no statement relating to the
controversy between the officers He had
however, made an affidavit in replv to
various assertions on which the Lord suit
In tne courts was based. Mr.. Hornblower
read 10 the court statement signed by
Mr.. Alexander In which the latter denied
that naturalization of the Equitable had
been effected because of any rivalry be-
tween ofncerS OF the company. Mr. Alex
ander stated that $40 shares out of a
total of 1000 had been voted upon the
proposition and had decided in favor of
naturalization. Mr.. Hornblower said the
LOCO shares of stock had absolute control
OF the companys interests. He declared
The stockholders We're entitled TO their
Z per cent dividends and would continue to
receive them. Nothing would be taken
from the owners of the stock except the
right TO vote for some of the directors
MIR. HoTnblower controverted the conten-
ton of Mr.. Shepard that the legislature
had no right TO alter or repeal charter
unless the original charter shall contain
such provision
ALBANY, n. Y, April 10.-Atty. Gen.
Mayer will not pass upon the amended
charter OF the Equitable until the issues
dox.