Year: 1876


ACTION TO WIND UP THE EQUITABLE LIFE AS


sURANCE COMPANY.


In the Supreme Court OF Kings courty action
has been brought by Mrs Emily c. Belding Of Brook
yn against the Equitable Life Assurance Society OF the
United States, Parker Handy, James M Hastcad
Henry G. Narquand John Sloane Henry Terbell and
Thomas 8. Young


The complaint shows that the Equitable Lie Assur-
ance Company is corporation under the act passed
June "a 1853 for the sole purpose OF transactng the
business of lie insurance; that 1t is mutual life nsur
auoe company, except that IL has capital OF 1000
shares 500 eaoh all 500 0OO entitled dividends
at seven per cent per annum; that the codefendans
directors and managers OF the affairs of the society
and familiar with It's business transacons that this
the company, and that those named defendants arc
joined TO represent all the directors OF whom there are
iity-two.


The complaint next shows that the plaintiff on cer-
tain day contracted with tho defendant for 10000
policy Of insurance, the term OF her natural lc


lhe complaint inrthcr alleges that except the seven
cent paid to the holder OF tho 800 zoo Stock the
persons insured are


ENTITLED TO ALI THE SURPLUS PROFITS
Of the business OF the society, and that under the
policy the plaintiff is entitled to equitable share OF
the profits, less an equitable contribution to the lawful
The complaint farther shows mat, order safely and
properly to transact the business Of life assurance
necessary that sum should be invested each year TO
accumulate by the time the plaintiffs policy shall be-
come due and payable; tnat such sum is called the
oil the policy the rate OF interest this State
for the calculation OF tho being four and
hall per cent per annum; and that according to the
laws OF this State the tenor OF Its charter and
nant with policy holders the Equitable Lie Assurance
Society Is bound to keep invested sum OF money to
protect The policy OF tho plaintiff and each or the
policies OF the same class as the plaintiffs and all us
policies. 1t is likewise alleged that the plaintiff has
duly performed all the terms and conditions imposed
on her In tho policy


GROSS KxrRAvAGAScE CHANGED.


The complaint proceeds allcge that the drcc-
tors Of the Equitable Life Assurance Society viola
tion of the duty they owe To It's policy holders have
invested real estate and expended OF the moneys
belonging to the society and its policy holders about
S. 600 The purchase OF land and in the
costly and gorgeous cdiiccs In New York and Bos-
ton and in costly furniture and adornmcnts in viola
ton OF the laws of tho State, to Wit In building
Broadway and Cedar street. New York. So 500 900; and
In the extension OF SAID building $l 500 OOO and
edincc In Boston, ST. 900 001 II alleged that these
edihces are not occupied by the society the rransac
ton of its business but that cghths thereof
for rental to other corporations and persons for pur
poses and pursuits other than life and that
occupying the premises New York This real estate,
Is alleged not and s not necessary for the
sacton OF the socicys business was not mortgagcd
tor loans or for money due or conveyed TO 1t in
satisfaction Of debts purchased at sales upon judg
ment decrccs or mortgages obtained made Tor such
debts.


The complaint further alleges that In the building in
New York there Avo steam elevators kept con
santly in motion at an enormous expense In construc
ton and working that the directors propose TO erect
ar-c addition to the original structure by adding to
tho height thereof several storios, with the amb
tion OF making the hghot aud most costly structure
in the city, that this is not for the use OF the society,"
but solely for


is further alleged that the S100, 900 stock s all
owned by the officers and directors of the company
and that they thereby have the control Of all tho money
and assets OF the society," and that the policy holders
have redress means OF stopping the eXtravagant
and reckless expenditure OF the sOcietys money which
ought 10 be preserved Tor the benefit and security Of
he liCvh nv IN thQ
although the assets OF the company, amounting TO over
$24 00O O0O all ownod by the policy holders except
the 800. 600 owned AS stock by the stockholders


This reckless extravaganza OF the management of
the society, s alleged In the complaint bas become
community. greatly TO the injury OF tho business OF
tho society, and plaintiff believes that unless the largo
and lavish expenditure restrained by order Of the
Court, The Equitable Lite Assurance Society Will


BECOME NsoLvENr,
and that II rigid and impartial examination INTO the
affairs OF the society be msdo Its available funds
would not be found sufficient to meet any sudden
emergency whereby any large numbers Of its policies
would become due and payable. The reckless cxtrava-
gance the plaintiff alleges, has continued for several
years and the longer continuance of 1t will render the
society incapable OF performing its part OF its contract
OF insurance with the plaintiff, and render her policy
worthloss that this gross extravaganza is nduged for
lille al and private ends and without color Of law and
has brought great wealth 10 the officers OF the society,
while 1t has been greatly to the damage and insecurity
Of all the policy holders.


RECEIVER AND AN ACCOUNTING ASKED FOR


Plaintiff demands:-1. That the Equitable Lie As
Society OF the United States, It's officers, d
rectOrs agents and attorneys be en ned from spend
ing any money Of the Society In the creation,
completion, extension furnishing OF tho buildings
In this or any other state.


That the officers and directors render to the Court
account Of the lands bought and buildings erected
thereon by them, and all tho appurtenanccs thereof
and the expense OF furnishing ard Of useless orna
ments in and about the same and that they be COM
PEELED to take said buildings, appurenances furniture
and the cost price thereof and pay the
ODst OF the same over to the society.


That q receiver DO appointed to receive from de-
endants the sum OF money to be paid by them for tho
benefit OF the polcyholders, and TO invest the same


L. That an injunction issue and receiver be ap-
pointed during the pendency OF this action.


D. For such further and other rcci MS to the Court
shall just


An AFFIDAVIT conGrmatory Of the allegations respect.
ing tho New York cdiace appended 10 tho complaint
are also copies of advertisements issued by the
Society


A DEMURRER IyTERPosED.


Tho defendants, except Sloane, Terbel and Mar
quand, have put IN demurrer TO tho complaint Tho
grounds OF the demurrer arc:-


l. That tho Court has no jurisdiction Of tho subject
OF the action.


. That The plaintiff has not legal capacity to sue.


That there is a defect Of parties plaintiff In this
/. That no stakeholder Is joined as plaintiff That
the Attorney General OF the State OF New York is not
part Of plaintiff


That there a defect OF parties defendant in the
omission of the directors OF tho defendant and each Of
them who are not made partics.


g. That several causes oil action have been improp-
ery united, to VITA cause OF action for msapplca
ton of funds, and cause OF action for violation Of
charter


That tho complaint does not state facts sufficient
to constitute q cause Of action.


T. That tho plaintiff docs not show that she has any
interest In the subject OF the action


Since this action was begun, tho passage OF bill
through the Legislature Of thus State has been pro-
cured. which authorizes insurance companies to own
tho building In which they have their offices, and tho
ground on Which ii stands