New-York tribune., 1905-06-27
TO TAKE LEGAL ACTION.
DIR. NORTON ON TRAIL.
Employs Counsel to Begin Suits Ac-
countants Find Necessary.

That Paul Morton chairman of the board of
directors of the Equitable Life Assurance So
ciety, intends to make his housekeeping thor
ough and absolute was made plain last night.
when he announced that he had retained Wal
lace Macfarlane and Austen G. Fox as special
counsel 70 institute proper proceedings for the
recovery OF any Equitable property which his
accountants found had been misappropriated.
These lawyers will cooperate with the Attorney
General in the suits he intends to bring to COM
pei the directors who shared in the syndicate
profits to refund those profits to the society.
The following formal statement to his ao-
ton was given out by Mr.. Morton:
Mr.. Morton has retained Austen G. Fox and Wal
lace Macfarlane special counsel for the Equitable
past financial transactions Of the society By Price
Waterhouse & Co. and Haskins & Sells. char
institute such legal proceedings as they may CON
s1deT 10 be apppoprate roE the be EaSitabe IS
found to be entitled as the result OF their eNala ia
structed to put themselves in communicating with
the Attorney General and the Insurance +sr oepf'-
It has been the rule in the Equitable society
to allow directors S25 each for attending exec
utive committee meetings. These allowances
have been paid directors whether they were
present or absent. Mr. Morton has changed
this No director will get fees unless present,
and no officer or employe who happens to be a
director Will hereafter receive any fee for at
tending board meetings of any kind He Will
have to attend these meetings as a part of his
duty.
John Jacob Astor. report said, had resigned
from the society. One two other directors
also had sent their designations TO Mr. Morton.
it was said yesterday. What action Will De
taken on these resolutions is uncertain. but 1t
is thought by officials of the Equitable that al
tha IJIr1a
stock will send their designations either to MI
Morton or the trustees. that the new manage
men may not feel embarrassed by their holding
the places Mr. Morton would say nothing
about the designations or that of August Bel
mont which the trustees have referred to MIN.
Mr. Morton would make nc announcement as
to what decision he had reached about the resls-
nations of Gage E. Tarbell, George t wilson
and William H. Mcintyre, which he nous.
These resignations it is thought. will be acted
on before the directors meeting tomorrow
and the decision probably will be announcer
then as a part of the reorganization plans.
The executive committee held a meeting yes
terday. James Hazen Hyde attended the
,nae+inp hut did not act as chairman. Paul
Morton presided, and this gave rise to the story
that Mr. HYDE was out of the committee. HIS
friends denied this. saying the UNDERSTANDINGS
when Mr. Morton became chairman OF tile
hoard was that he should be chairman of the
executive committee also.
Mr. Morton was busy yesterday in giving IN
teryiews to managing agents. He wants 10
get in touch with the conditions in various sec
tions OF the country. Among those from out of
+ov1, with whom Mr. Morton talked were F. H.
Levy of New Orleans, and Mr.. Wisdom. his
rartner Some of the metropolitan managers
also were coseted with the chairman who IN
quired closely into the conditions of business
Gage E. TarbeH also was with Mr.. Morton at
times throughout the day.
James Hazen Hyde had long conference
with his lawyers in the morning at the offices
of Alexander & Green, in the Equitable Build
ing. He went over with them all the syndi-
cate transactions which Superintendent Hen
bricks criticised SO severely in his report. The
lawyers told him they believed he need fear
no prosecution by the Attorney General based
on those transactions. No civil action could
win they said and certainly no District Attor-
ney could find basis for criminal action against
any of the underwriters,
The Attorney General was at Albany yester-
dav and his office here did nothing toward
preparing the Equitable suits. No steps will be
taken until he returns to this city, probably on
Thursday Meantime. he will confer with Su-
perintendent Hendricks and Governor Higgins
at Albany. Suits will be filed, it is thought
against all the Equitable directors who were
in the syndicates. These men were George II
SQUIRE. William M Mcintyre, H. c. Deming,
Valentine P. Snyder, Alvin W. Krech and Louis
Fitzgerald
Grover cleveland. Justice Morgan J. O'Brien
and George Westinghouse trustees of the Ryan
stock which is to be used for naturalization of
the E0uitable will hold q meeting to-day to ar
range details for the voting by the policy
holders They viii send to each. policyholder
who is entitled to vote printed forms in which
he shall record the names of the policyholders
whom he favors for directors. The trustees.
according to the general plan, viii act simply as
q voting committee. The policyholders will not
give formal proxies as in the ordinary mutua!
company.
Gage f. TarbeI declared yesterday that there
was no truth in a story that some of the general
agents were buying stock to assure themselves
places in the directorate. Agents could not pos
sibIy get control of the Equitable. he said, and
they wouldn't want to If they could
TTST4KE As TO KRECH.