Evening star., 1953-10-29
Chairman Of Board
OF Equitable Life
To Resign Position
By the Assoeiotsd Press

By the ASsoeiotsd Press
NEW YORK, Oct. %
. Thomas I. Parkinson. chairman
of the Board of Directors OF
Equitable Life Assurance So
ciety of the United States, will
resign from the company, it was
announced today by Alfred J.
Bohlinger, New York State Su-
perintendent of Insurance.
Mr.. Bohlinger said Mr.. Park
inson had informed the execu-
tive committee of the company
of his decision to resign at the
annual meeting next February.
Mr.. Bohlinger said routine
examination of the affairs of the
society by the State Insurance
Department indicates that the
company is in a sound financial
condition"
The departments report,
months in preparation. covered
the years 1949-50. The super
intendent said Equitable had
made certain changes in its
advertising contracts at the sug-
geStion of the department.
Report on Examination.
In it's summary and conclu-
sion the report said:
The examination Of the
Equitable Life Assurance Society
of the United States indicates
that it is in a sound financial
condition. Such financial condi-
tion as at December 81, 1850. as
determined by this examination"
Mr.. Bohlinger said the de-
partment studies the affairs of
life insurance companies in the
State at least once every three
years.
The report said that at the
departments prompting Equit-
able broke off a contract with an
advertising agency headed by
Courtney v. Parkinson, son of
the company's board chairman.
The report showed that in
the two years Equitable spent
$3.50. .920 on advertising placed
with an agency formed by the
younger Parkinson.
Courtney Parkinson, reached
at his advertising agency office
in the Empire State Building,
said he had no comment on the
insurance department report.
He declared that the matter of
the breaking of the insurance
company's contract with his
agency had been "hashed over
more than a year ago and was
just an old story"
Had Capital of $1,000.
According to the report, the
advertising agency of Courtney
Parkinson was incorporated in |
1947 with an authorized capital |
of $1,000, consisting of 1000 |
shares of which $50 shares were |
owned by the presidents son who
then was % years old. There is
no evidence, said the report. that
this firm functioned as an ad-
vertiSing agency on a country
wide scale before it was given
the Equitable account.
The report said that of $780,
920 in advertising placed with
the firm in the two-year period.
$649.051 represented new types
of advertising not previously
used by the insurance company.
Due to the fact that the adver-
tising agency was not recognized
by the American Newspaper Pub
fishers Association, some news
papers refused to extend credit
to it in the early part of 1949, the
report added.
Because of its Importance.
the report said, the matter was
brought to the attention of the
superintendent of insurance of
the State of New York during the
course of the examination. He
the situation with
of the executive COM
mittee of the society's board of
directors and requested that they
bring it to the attention of the
board with the object of taking
such action as may be appropri-
ate in the circumstances. AS a
result, the arrangement between
the society and the advertising
agency was promptly termi-
mated"
The elder Mr.. Parkinson will
be 70 years old on November 27. |
He has been chairman of the
counrty's third largest life in
surance company since last Feb
ruary. Previously he held the
presidency for 25 years.