The Birmingham age-herald., 1905-09-23
NYLIC EXPLAINED
 BY MIR. BUCkNER
(continued from First Paee)


 deed of trust, and detailed the progress of the trustees in mutualizing the com pany. The letter detailed the election of twenty-one new directors on reeommenda- ton of the trustees, all of whom except two are policyholders. These two are expected to take out policies as soon as possible. MT. Cleveland also calls the at tention of the committee to the difficult ties in the way of carrying out complete naturalization owing to the litigation by the minority stock interests and to the provision of the societys charter that directors shall be stockholders. In con- cluding his letter MT. Cleveland says:
 "The trustees feel that In the difficult ties that have confronted them, inasmuch as they were compelled to act promptly under the powers conferred by the trust agreement, the results of their care and labor have been as satisfactory as they could possibly have expected. They are not blind, however, to the fact that obstacles lie in the path of the proposed naturalization which are so inherent that even with the greatest study and care they cannot be easily overcome.
 Pleasant to the Ear.
 Naturalization and policyholding con trol are pleasant to the ear, but in and of themselves they do not necessarily im- port good administration or successful management. If policyholders are to be allowed control, they should in some way be made to realize their responsibilities as well as their privileges There are probably nearly half a million individuals who are policyholders in the Equitable society, and yet it would be giving a high estimate to place the number who have thus far made the least efforts directly or indirectly to acquaint the trustees with their preferences at 25,000, and their desires when made known have often been so palpably inconsiderate or based on such misconception, that they could not with safety be followed. The trustees have derived the best and from policyholders in cases where their repre- sentations have been made through as sociations of the insured, regularly or ganized, and thus enabled to sift and re- duce to sensible construction the multi plicity and contrariety, and the frequent ly misdirected want of local sentiment
 q am certain the trustees for whom speak are heartily in favor of such mu- tualization as will be real and genuine and at the same time will compel in the the direction and management of life in- surance companies such business ability. such attention and devotion to duty and such honesty and alertness in discharglng f1duciary obligations well as promoting legitimate self-interest, as are positively vital to the beneacience of such organ fzation.'
 Henry R. winthrop, president of the executive committee of the Equitable Life Assurance society and it's financial manager, was called He. identified a record of syndicate participation. A record of sales and purchases of securities by the Equitable society for the last five years was also identified. and all were placed in evidence. In participation in a syndicate amounting to s750.000 In Union Pacific bonds. Kuhn, Loeb &s Co. were the syndicate managers. There was no profit A number of the syndicate transactions showed no profit and MT. Hughes asked if he had any reason to think there had been profits. MT. Winthrop said he had not.