The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-11
Tho Policyholder.

Wh8C lB inc pOSlt1oh "a 'Aio Po'AS'
holders in the reorganized Equitable'
According to the statement OF Pre-
siding Justice MORGAN j O'BR1EN, 1t
was no, as a large policyholder in the
society, who enlisted the powerful CO.
operation OF Mr.. THOMAS F. RYAN, an
other polioyholder, in the movement to
purchase Mr.. HYDE's controlling stock
interest and to convey the same to three
trustees OF eminent trustworthiness. The
names Of all of MIR. RYANs associates IN
this purchase have not yet been dis closed
but he speaks Of them as "poicyholders
who, like myself. have never had any
relations with the Equitable except as
poNcyholders.
In the next place, the reorganization
now In progress purposes to adopt the
measure OF naturalization already ap-
proved by the Superintendent OF lnsur-
anoe, but held up by Justice MApDoxs
decision; namely, the choice OF TWEEN
ty-eight directors by the policyholders'
q against twenty-four directors repre-
senting the stock. But whatever OBJ
jections applied to the original twenty
eight to twenty -four plan, with regard to
tho free exercise Of the policyholders'
franchise untrammeled by interference
or dictation either by the central man
agement or by the society's local agents.
are removed by the expedient Of placing
the machinery Of election in the control
Of the three trustees.
The new plan goes much further than
that. Not only fare the twenty-eight
majority directors to- be voted into
Office by the trustees a. the policyholders
may determine, but the remaining
twenty-four, or stock directors are to
be chosen absolutely and finally by the
uncontrolled judgment Of the trustees.
The proprifty interest acquired from
Mr.. HYDE BY Mr.. RYAN and his associ-
ates begins business by divesting itself
entirely OF the power to vote Tor any
one Of tho hity-two directors. The
policyholdefs elect twenty-eight Of the
directors through the trustees as the
representatives Of the majority stock
interest The trustees, as the repre-
sentatives of the policyholders' interests,
select the other twenty-four.
We assume that the legal obstacles
to charter amendment, as indicated in
Justice MApDox's decision upholding
the property rights Of the minority
stockholders, are met by the trustee
plan; that il to say, while there will
continue to be elections under the orig
inal charter, at which all stock may
vote, the majority interest will decide
these elections and constitute the board
In the manner already set forth.
Thus it seems that the naturalization
under the Ryan plan goes much further
away from stock control and in the direc-
ton Of policyholder management than
any previous ,proposal that was COM
patible with practical and legal condi-
tons Indeed, that 1t is as thorough as
these conditions permit.
The efficiency Of the system and the
guarantee Of the EQmtable's future
prosperity will depend upon the char
acter OF the men holding In trust the
control Of the society's affairs. The
three names proposed are such as to
justify the confidence Of every policy
holder. Mr. RYAN did not overstate the
high and honorable quality Of the service
when he appealed to Mr.. CLEVELAND to
help restore to eoundness and public
confidence this great trust affecting 80
many people Of slender means.