The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-07-12
RYAN HAS OTHER
IRONS IN FIRE
Equitable Not His First Insurance
Investment.
HE CONTROLS WASHINGTON
MUTUAL LIFE AND LEVI p. NOR
TON INTERESTED.

NEW YORK, July 11-Chairman
IN Morton of the Equitable Life AS
surance society. in a circular let
ter, warns all officials and employees of
the society not to discuss publicly the
society's affairs.
I'm the future, when there is any
thing to be said ] will say it," is the
concluding statement of Mr.. Mortons
letter.
Chance For TarbelI.
Chairman Morton announced today
that ne intended to retain the services
of Second Vice President George A
Tarbeu
Mr.. TarbeIl and 1 have agreed TO
work together for the present" said
Mr.. Morton. He will have a chance
TO demonstrate his usefulness to the
society along the lines of his special
work. and then. if we do not agree
later, why, one or the other of us will
leave the society"
Mr. Morton also said that the resig-
nation of Archibald G. Haynes, local
agent of the Equitable, will not be ac-
cepted. He added that he expects Mr.,
Haynes to withdraw the resignation,
which already has been presented to
the chairman to take effect Jan. 1
next.
Ryan Controls Another Company.
The Evening Post today says that
Thomas z. Ryan, in addition to his
purchase of the Hyde stock of the
Equitable society. also controls, with
his associates, another life insurance
company. The Evening Post says;
When the attention of the financial
world was attracted to Thomas F.
Ryan, traction operator and future
builder of subways, by his purchase
from James II. Hyde of the 502 shares
of stock which controlled the affairs
of the Equitable Life Assurance So
clety, 1t was not known that Mr.. Ryan
and his associates also controlled one
other life insurance company.
Mutual Life Interested.
Since Jan. l of the present year the
affairs of the Washington Life Insur-
ance company have been managed en-
tirely in accordance with the desires
OF Mr.. Ryan and others who were as
sociated with him in the Equitable
purchases From the time mentioned
II has had as president a former Of
hclal of the Mutual Life Insurance
Sence' for three months by President
McCurdy of the Mutual when it was
explained where he was to go. and by
a vice president who happens also to
be vice president of the Morton
Trust company, which. TO say the
hliations.
In February last general attention
was attracted to the affairs of the
Washington life by the report made to
District Attorney Jerome by State Su-
perintendent of Insurance Hendricks,
who declared that the mismanagement|
of its affairs had been simply incom-
prehensible.
Surplus Was Wiped Out.
lone of the first discoveries made by
the investigators was that the company
not only was involved to the extent
that its surplus was wiped out, but its
capital stock was impaired. However,
upndeT its charter il was possible for
the capital of the company TO be in
creased to $500, 900, and this was done,
the company thus being given $4,000
worth of stock to offer for sale"
The control of $125,0O0 of stock was
held by William A. Broder, jr., and his
associates Levi P. Morton was di-
rector of the Washington Life.
The increased stock was offered for
sale at $500 a share, but no purchaser
appeared. Continuing, the Evening
Post says:
Levi P. Morton's Option.
1T was when things were in this
condition that Levi P. Morton, one of
Life, requested an option on the con-
troll of the stock (the existing $685. OO)
at par. or $50 a share.
As a director, Mr.. Morton, president
of the trust company that bears his j
name, and of which Thomas r. Ryan is
vice president, knew exactly what the /
details were which had been disclosed |
by the insurance departments exam /
inatiOn. With this knowledge, he made
his offer during the month of Decem- /
Der, and almost immediately the offer I
was accepted and the designations of /
the executive officers of the company
were placed in his hands and later !
thsoe of the Equitable officials were /
placed in the hands of Paul Morton
Ryan's Offer Accepted.
"On Dec. 80 an offer was made by Mr.. !
Ryan and associates for the purchase !
of the $375,OO0 worth of new stock for /
$685. OF this amount Thomas + |
Ryan contributed S2tS,750, Levi P Nor
ton S2lS,750 and Harry Payne Whitney,
another director of the same company
S2lS,75O- By noon on the same day, the !
sale having been ratified, the money /
was deposited with the company of /
which Mr.. Ryan is vice president. The /
usual depository of the Washington /
Life has hitherto been the Chatham !
National bank.
The capital had balances in four
New York banks of over a million dol |
lars at the end of December, 1904. or
nearly L per cen. Of all its assets.
Shortly after the purchase by Mr.. RYAN /
and his associates of the new stock the /
bulk of this sum was transferred TO the /
Morton Trust company.
Officers Chosen.
Having thus secured control of tho