s- The following letter appears ma.
cent issue of the "Japan Daily M.
and we have been asked to reprint Deak Six,—During the past thr months numerous paragraphs dealing esrtain changes in the Equitable Life Assurance Society of the United States have been published in the American papers and reproduced in other parts of the world. It will be interesting to the public generally and to policyholders in particular to have the latest authentic information in regard to the situation.
The Society's Charter provides that the business shall be conducted on the mutual plan, an@ for some time past the question has been under consideration of how to give to this condition actual and permanent value. From the inception of the Company the business has been carried on on the mutual plan and the late President Hyde on many occasions publicly declared that the surplus belonged to the policyholders, that being the guiding principle of the management for forty-five years; and Mr J. W. Alexander, the President, has repeatedly of late declared that the surplus is intended for the security and benefit of policyholders and that not tie dollar should be diverted from its original purpose. To remove any possible doubt on this important subject, special committees of the Board of Directors have reported and their resolutions have been carried without a dissentient voice, conferring upon policyholders the right to elect a majority of the Board of Directors. This step in the right direction has been improved and enlarged.
I am ju receipt of a telegram from the Head Office in New York announcing the result of the special meeting held on the 10th instant. The telegram reads as follows The control of the stock has been transferred to a committee of polioytobe vested in three trustes, appointed for life, with power to vote for twenty-eight directors according to the instructions of and representing policy holders, and twenty-four directors to represent the stockholders, thus accom-pushing the mutualisation plan approved by the State Superintendent of Tasur. ance and by the Board of Directors. This settles on a secure basis the mutual plan and confers upon policyholders all that is implied in the term mutuality. The gentlemen invited to serve as true toes for the policyholders are well-known and command respect. They are the Hon. Grover Cleveland, formerly Prot of the United States, the Hon, Justice O'Brien of the Supreme Court of the State of New York, and Mr. George Westinghouse, President of many great and well-known companies To still further consolidate the rests of policyholders the office of Chairman of the Board of Directors has been created and the Hon. Paul Morton, now Sec tary of the Navy of the United States, has been elected to this office which he has accepted, This adjustment gives general public ction.
A few words in reference to the stockholders may be useful.
When the Society was formed a guarantee of $100,000 was required and this was raised in one thousand shares of $100 each, the dividend thereon being limited to 7 per cent per annum. Het tofore, the holders of all this stock have been men deeply interested in the welfare of the Society, and they have formed practically the governing body; but as the Society's funds now exceed $410,000,000 with a surplus of $80,000,000, it has become necessary tu secure the rights of policyholders by the appointment of Trustees, which has been done.
will take this opportunity of referring to various unfounded reports affecting, or rather reflecting, upon the stability of the Society. To meet these charges a committee of investigation was formed, the Chairman of which was Mr. H.C. Trick, 4 name prominent in financial circle From a short letter issued by him I quote the following "It seems proper for the Committe" to state that the interests of every policyholder are absolutely safe. The assets of the Society are in possession of the Committee; they are absolutely sound and the integrity of everyone of the
Text read from the printed page and cleaned; old type leaves the occasional error.