The sun., 1906-02-02
HIT BY EQUITABLE REPORT,
TWO MEMBERS OF OLD BOARD
INVOLVED BY ACCOUNTANTS.
They're on Present Board, Too. and Have
Hitherto Escaped the Ilmelight-Paul
Morton Says That Savings Already
Made Amount TO 81 400 600 Year.

1t was said on good authority vest erday
that the chief reason why secrecy was
imposed upon the directors Of the Equitable
Life in the matter Of the public accoun-
tants report on the society's ad airs, was
that the findings hit at least two members
of the present board, who have hung on
from the old regime. The report, 1t is
declared contains new disclosures, which
may form the basis for civil actions. The
men whose names are involved in the new
disclosures have up to this time kept pretty
free from the life insurance scandal.
President Paul Morton, of the Equitable,
reiterated his statement of Wednesday,
that the only reason why pledge of secrecy
was imposed upon members of the board
of directors was that the report contained
certain trade secrets" which the company
could not afford to put in the hands OF its
competitors.
When asked If he would make public
the report with the trade secrets eliminated
Mr. Morton replied that he was not at liberty
to do 80 as he had signed the pledge OF
secrecy along with the other members OF
the board. Mr. Morton also reiterated
his statement, that most OF the things set
forth in the public accountants report had
already been published in the newspapers.
The report, it was learned. consists OF Ioo
printed pages and deals with some OF the
directors without gloves.
1t was also said yesterday, on good au-
thority, that a proposition was maze 10
the directors at Wednesdays meeting
that the public accountants report should
be merely received by the board and
placed on file; that it should not be read
to the board. There was. it is said, con-
siderable opposition to tins n proposition, oas
supplied with copy OF the report under
the pledge of secrecy.
Mr.. Morton denied emphatically yesterday
that he ever had any intention or desire TO
keep the contents of the report from the
to have the report read at the meeting was,
he said, merely time saving suggestion
as 1t would have taken three hours to go
through the document The directors. de-
cided that it would be better for each to
take copy and study it at his leisure.
Mr.. Morton announced Yesterday that the
saving which would be made for the society
on the retrenchments of the new manage
ment would amount to 81 200 900 year in
stead of 5000 900, the amount which he
estimated few months ago. The cash
| deposits in banks and trust companies have
! been cut from S36 900 900 carried year ago
| to about sll 900 600. The investment of the
difference represents an increase in the
society's income Of about $500 900. These
| retrenchments will mean eventually an in
crease in dividends to the policyholders,
1t was learned yesterday that President
Morton has referred to the pension COM
mittee OF the board Of directors practice
which he found in vogue in the society when
he assumed control. This was to allow each
employee Of the society, to take out 81 600 OF
the premium and re egarding it, so far As the
entry on the books was concerned as part
Of his salary.
There are at present 900 employees in the
Equitable, but 1t is understood that the prac..
tice has been held up pending the. decision Of
the pension committee. Since the practice
was instituted seventeen Of the insured, 1t
| is said have died. 1t was explained yester..
day that each clerk entering the employ OF
the Equitable has to submit to a medical
examnato ion which is just as rigid as that
made in the cases OF prospective policy
| hol1ers