The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-10-31
BOARD DOES NOT
DIRECT AFFAIRS
Inactivity of Directors of Equi-
table Life Insurance Society
Criticized.
RECORDS NOT COMPLETE
Functions Largely Usurpcd by
Committee Of Paid officials
Of Company.
RECORDS NOT COMPLETE
Especial to Tho Tlmcs-Dispa,ch.l

Especial to The Times DispatchJ
New YORK, October 30.--Churgcs that
tho board of directors or tho Equitable
Life Assurance Society does not direct
the affairs ofsthat 1886 900, 900 institu
ton arc mace by tho State Insurance
Department
1t also - asserted that tho records
of the board OF directors give only
tneagrc accounts and that a committee
OF paid officials OF tho society has to
n large extent usurpcd the functions OF
tho board.
The charges arc contained in q report
or an examination Of tho financial con-
dition OF tho society made by Chief
examiner Nelson B. Hadiey. Tho re-
port has just been made public by the
State insurance Department.
I'VE have examined tho records of
tho board or directors and OF the va
rious committees OF tho board" writes
Mr.. Hadley. and found that these
records give very m.usre accounts or
the business transactions or the So
ciety.
In some cases veroaI reports were
made, the purport Of which could no,
be ascertaincd from the records. 1t
is apparent that II tho records do not
give a complete account or the trans
actions OF the board OF directors and
the various committees OF the boarI
tho mem bers OF the board OF directors
cannot be fully Informed al to tho
transactions or the soc,cvy md i,s
method OF doing business"
Powers Usurped.
he1erring TO tho usurD!nr OF ,bn
power OF the board by paid oillcers tho
report cites the rules and regulations
committee.
This committee" Mr. Hadlev saws.
is an advisory committee OF the Of
ncers and heads or departments OF the
society Apparently no member OF tho
tl,t
It's authority appears never to have
been considered b. the board OF di-
rectors. It's transactions are never re-
ported TO tho board OF directors or TO
any committee of the board
This, In our opinion is a matter
that should be remedied, as this body
( Is one OF the most, If not tile most, i'm
portant ono OF the society, regulating
almost wholly the conduct OF tho so,
ciety with the policyhoidersr
Tho board also comes In for criticism
Tor the latitude that Is allowed tho
comptroller IN connection with the ON
Dloymcnt and discharge OF an army OF
employees who receive less than $1,000
year.
Under tho present system or this
society responsibility for It's actions or
tho proper administration cannot be
brought home TO tho board OF direct
ors. IL should be-"
Ar. Hadley also notes that tho Euui-
table has made come loans on real
estate that arc the reverse OF conser
vativc, and that Frank Jordan, son OF
tho former comptroller. Thomas ID.
Jord.tn, etill has monopoly of placing
ire insurance on properties on which
the Equitable me kcs mortgage loans.
This latter practice camo in for
severe condemnation during the insur-
ance investigation.
The report says: TT was noted that
In many cases by using the society
appraised value OF property as q basis
Tor mortgages. tho amounts OF the
loans wore In excess or the legal llni-
tations."