The San Francisco call., 1905-05-08
PROFITS FOR POLICY HOLDERS.
Alexander Says They Alone Should
Share Surplus Earnings.

NEW YORK, May flames w.
Alexander, president of the Equitable
Life Assurance Society, tonight made
public letter written by him to Ed
ward A. Woods, manager of the So
ciety at Pittsburg, in which he asserts
that the surplus of the suciety is held
for the exclusive benefit of it's policy
holders and not the holders of the
stock. Alexander also takes occasion
in the letter to deny the rumors that
he will resign. The letter was written
under date of yesterday in reply to a
request from Woods in confirmation of
certain official statements made by the
Equitable Society regarding ''the
mutual plan of it's business and the
exclusive ownership of the policy
holders of the surplus" Alexander says
in part:
Irecognize that for the benefit OF present and
should be at this time some clear and un-
eQutvccal expression on this subject, and
without reviewing all the society's statements
doubt to three facts: First, that the BUST
ness of the society has been conducted in ac-
cordance with its charter since the date OF It's
organization on tho mutual plan: second that
the profits OF the society nave been accumu-
lat sssa r, fql It's - pecy sb eoae, and third that
elusive benefit Of Its policy holders
do not recall any serious question having
ever arisen on these points until recently.
when claim has been put forward on behalf
Of the stock which IL at variance with the
terms Of the societys charter, the uniform
course Of its business and all its official ana
unofficial statements and representations. This
is not merely my own understanding and opln-
ion. but IL confirmed by Mr.. vancise who. as
you know, has been in the service OF the So
ciety for nearly forty years. most OF the time
It's actuary.
He then quotes from a letter written
by Vancise to the society's manager
at Albany in response to formal In
quiries from the latter on the subject
of surplus. In this letter, under date
of May 5, vancise says:
AS an officer of the Equitable Life A.sur
ance Society fully agree with you az to the
truth of the following statements In regard
to the Equitable:
l. That the business has always been. and
mus. always be. conducted on the mutual plan
2. That the entire surplus belongs TO the
policy holders exclusively.
8. That each participating policy will re-
ceive its due share of surplus profits In ac-
cordance with the terms of each contract, re-
spectively.
s. That the agents in soliciting business on
this basis. have acted with due authority: and
5. That the policy holders have mo- ground
for apprehension doubt in the premises
In this connection would say that while
I have been connected with the Equitable as
clerk and officer for nearly thirty-eight years
/ have never until recently neard OF any ques-
tions being raised as to the absolute ownership
of the surplus OF the society by its policy hold
ers.
being associated. one OF the subordinate Of
fcers. with Henry B. Hyde. the founder and
late president of the society. and my recoIlec-
ton Is that in his declarations both verbal
and in writing. he always stated that the
business OF the Equitable transacted on
the mutual plan and that the stockholders
$1,000 per annuna on their capital stock which
provided for by the charter
Mr.. Hyde always directed me to aprortion