Arizona republican., 1906-05-14
The Wagon for This Climate
THE FUTURE POLICY
 OF THE EQUITABLE
A Statement by Chairman Morton of
 the Board of Directors.

The Republican is in receipt of personal communication from Paul Morton. chairman Of the board e di- rectors of the Equitable Life Assur- ance society, in which is discussed fully the present status of his cOmpa- nv. the effect of the investigations which have been held. and the future policy of the company. The following are extracts from it:
 'The one thing emphasized by all of the investigation is that the Equit- able. like all of the large companies, is solvent beyond question. Evils of management have heen- exposed, and reforms have been instituted.
 "The Equitable Society nas had four different investigations: One by the Prick committee. the expense of which was borne largely by Mir. Prick per sonally; one by the superintendent Of insurance: one by the legislative. or Armstrong cOmmittee: and the other the most thorough and complete one by two firms of independent auditors cone firm known throughout the Unit cd States. and the other better known throughout the British Empire) em- ployed by the management, and given every opportunity to examine every thing about it's affairs.
 "These two firms of experts worked against each other. but checked one another. At the close of business each day they were given absolute possess ion Of the societys books and records. and they were constantly at work far into tne night for eight months. Ger tainly no other life insurance company and probably no other financial insti- tuition of any kind. has ever been in vestigated so thoroughly, and with such complete absence of the exertion of any influence-favorable or unfav- Orable-tO any one.
 This investigation involved ar e<- penditure of more than $2O0.O00 but It was worth all it cost for through 1T has been secured to the policy holders and to the general public an accurate authoritative and detailed exhibit of the societys condition. regarding which there is no possible ground for misapprenension or doubt
 Every asset claimed by the society has been found by the expert account ants and re-appraised. Every parcel of real estate has been re-examined and listed at a figure well within what it would bring if it were offered on the open market tomorrow. All stocks and bonds have been accounted for, and their accurate value ascertained. Loans have been verified; liabilities have been measured: and nothing has been overlooked or sighted. Bad ac- counts have been charged off and all of the societys assets have been placed by the re-valuation on a very conservative basis.
 ''The assets of the society on De- cember 31. 1905, as certified to by the chartered accountants, were $420, 0,973.- 756.92. The surplus (which includes the reserve and profits for distribution on deferred dividend policies at the end of their accumulation periods. the savings for distribution on annual dividend policies. and the contingent reserve) was S6S.457,19O27 On De- cember 31, 1904, the surplus was placed at $8O,794 ,26921 Nothing has disappeared since then. except over valuation of securities and real estate which were carried at a higher figure than they could have commanded had It been desired to dispose of them quickly in the open market
 The apparent shrinkage in surplus IS more than offset by the economies and savings of the new administration which now amount to more than s1- zOo'OOO a year. On a four per cent. basis this is equivalent to an addition al investment of $30,00O OOO In addf-
 , A.UU been saved to the society through the recovery of money improperly paid out, or the disavowal of obligations Improperly incurred. Suits have been instituted, or are being prepared. for the recovery of other large amounts and steps are being taken to increase the society's revenues from sources which have not been as profitable as they should have been.
 The amount of cash carried by t1o society inbanks and trust companies mas been reduced from $36, 100000 to less than $1O,000,000 The dierence. ha- been invested in real estate and other securities which pay four per cent. or more On the greatly reduced cash balances the rate of interest mas been increased one-half of one per cent. These two items have increased the income of the society about s6OO. 900 per annun.
 Other reforms and economies will De erected in line with the policy Of the new management and the recon. mendatlons of the chartered account ants and other experts ss to the meth l ods of handling the society's business. Buildings which have not brought in pronatble return on a fair valuation are Delng sold or leased for long terms so Ihat they will earn four per cent. ana more. For example. the St. Louis | property which in the last ten years has averaged but S22, 900 per year. Is