New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-01
YEARS. SCANDAL COST.
Equitable Losses Made Good by
Economics IN Many Ways.

Economics an Many Ways.
The most definite and accurate Thermometer Of
she cost OF the insurance scandals. first dis
slosee little more than year ago. which the
public has yet had the privilege Of examining,
was the annual report Of the Equitable Life AS
surance Society. given out yesterday afternoon
after the annual meeting. While the figures
show startling losses along certain lines, they
also indicate that the reforms instituted by the
new management as a result OF the probing of
she Armstrong and the conpany's own nFesu-
eating committees are already beginning TO bear
;so small crops OF fruit.
At the end Of last year the company had S5o-
$4,000 less Outstanding insurance than it had
twelve months previous. There was a falling OH
sn new business amounting to SSl.224,Ooo. most
OF which is directly traceahle 10 the general pub
lie suspicion against insurance which the iuYes-
tieaton aroused. The large increase In the
amount paid out in surrender values"-SI,I3l,
og0-Inuch of which went TO alarmed policy
holders. is directly traceable 10 the insurance
trouble
Yet IN spite Of this the company paid s6.709.
uoa in dividends to polcyholders. an increase
over the previous year Of more than 500 600
This is the greatest increase in the COM
raa1's history The effect of the reform
administration Of Paul Morton is shown in
a decrease of expenses 10 the amount Of $1,000
Oda This decrease is in spite Of the fact that il
cost the company $4,000 10 investigate itself
which comes under the head Of an extra ordinary
expense.
The expected election of officers was postponed
for a month. 10 give the special committee pre-
pairing a new set Of bylaws time 10 make its
report A vigorous denial was made that there
was any friction between Gage F. Tarben. the
second Vice-president OF the company, and the
Aiorton-Ryau mana cement. Tarben declared
that he was confident Of reelection when the
question comes up the latter part Of March.
The vacancy caused by the resignation of
Senator Chauncey NJ. Depew from the Equitable
board was filed yesterday by the election of
John y. Beach He was nominated by the Ryan
trustees. Mr. Beach is member Of the Tefft.
Weller Company we'll known 6rygoods house
in this city. He has not previously been iden-
vied with insurance companies.
ASSETS WERE S42O.973, 756 80.
The annual report Of the Equitable IS based
OIL the findings Of A. Loves Dickinson, Price
Waterhouse & Co. and Elijah W Sells Of Has
kns & Sells. the certified public accountants
who went over the society's affairs. The total
assets Of the company the end OF the year
we're S42O973.7J 6 %. which is an increase over
1904 Of 100000 The liabilities Of the COM
rany are now S352Il6. 500. an increase Of S19.-
$4,000. Practically all Of this increase how
ever is found In the item Of general assurance
reserve. which has been increased from S327.-
T3S.35s in 1894 10 S347. 092. 662 al the end of
last wear
A striking reduction in the amount of the
compsnys surplus is noted In 1904 this sur
plus was $50 T94 0Oo. while at the end of 1905
Il VAS S6S551 Geo a decrease Of 81. 237. 900 The
general cry which arose for the reduction of
Fprplus Of the big insurance companies is re-
sponsible for this change
The total income Of the year 1905 was $50
6Soooo, or an increase Of 81. COB 600. There was.
however, an adjustment OF book values OF stocks
and bonds In 1900 amounting 10 a debit OF
Ssi25o0o. which did not appear I'm 1904 so that
the real increase Of receipts Is Sl002S 900 There
was decrease I'm premium income of STA. 1863
over the previous year. The amounts paid TO
policyholders increased from S36. 3s9 900 in 1904
-te Sal $4,000 in 1865. an increase Of S4.770Ooo
In 1904 the company had outstanding assur-
Hnce amounting 10 Sl.495.542.0O0. and at the end
OF last year the amount was 81 .465 l23 900 a
decrease Of S304l9ooo0. Only Sal G95 600 in
new business was done last year as compared
with 22e93o000 in 1904. a loss Of SsI 224 600
The total disbursements and losses for 1909
were SSi.10l'e0. which leaves So, $4,000 Ont
OF the total receipts and profits unapportioned.
.
Of the society.
Experts figure from the report that the ratio
n expenses 10 the total receipts has decreased
from ls.11 per cent IN 1904 70 Il 10 ner cen,
N 1907.
II is understood that the board discussed ,ba
Insurance situation with especial regard 10 nros-
peetive legislation at Albany There will ba
special meetings Of the boards of the Nev
York Life and the Mutual Life to-day 10 decide
what manner OF protest they viii make 10 the
legislature against those OF the Armstrong rec
concentrations which they consider drastic
Whether or not The Equitable took any such
bciion yesterday could not be learned out Presi-
cent Morton is on record saying that he
would under no circumstances send 4 lobby "a
Albany.
~ 'Ne close Of The meeting President Morton
gave out this statement:
Tho story which appesras q. . -
lleIhiIe "a regard - Mr.. Tarben Is not ,rl1e
Headaches aad NearaIefs r-,,,, CO.