New-York tribune., 1905-04-12
FIGHT FOR HYDE CONTROL
MEANING OF LORD SUIT.
old War to Protect Equitable Stock
Rights Is on Ag0in.

Lord a minority StOckholder, 10 prevent
naturalization of the Equitable Life Assurance
Society is the same question over which the
naturalization plan almost came 10 grief once
before. when President Alexander refused to
assent 10 tho amended plan because it provided
that no further amendments should be made TO
the charter save by the consent Of three-hfths
OF the stock. This became apparent from the
arguments yesterday before Justice Maddox.
William B. Hornbower. President Alex
ander's counsel. declared that il was not neces-
sary 10 have the consent OF stockholders 10
mutualize the society. Under Section 50 of the
Insurance Laws the directors could mutualize
the society. he said. Samuel Untermyer James
II. Hyde's counsel. intervening in both action
and motion. replied that, while Mr.. Hyde was in
favor Of naturalization. he could not afford 10
lose his property rights as a majority stock
holder. and if It true that at any future
time under Section 50 the directors could force
q further naturalization the stockholders would
have given away valuable property rights which
could not have been taken from them, and
would have obtained nothing for their agree
znent. He said he would oppose the applica-
ton for injunction TO prevent naturalization
as strongly as did the counsel representing the
Equitable
SUIT IN ,HYDE's INTEREST.
II was declared yesterday by a corporation
lawyer that the Lord suit nothing but an
attempt by Mr. Hyde to rectify his mistake Of
signing away his stockholders rights in con-
senting TO the naturalization plan. To regain
these rights. his lawyer said il was necessary
70 make hght in the courts which. OF course,
Mr. Hyde could not do personally. Undoubt-
edly he thought, the court would decide that
property rights could not be taken away, thus
Shrowing the controversy back where it was
before the naturalization plan adopted.
C ". MORSE IN EQUITABLE SUIT.
Argument on the application Of Mr. Lord for
an injunction was finished at the hearing yes
terday. George Zabriskie. for Charles W. Morse,
the banker and 'iceman." who owns fifteen
shares OF Equitable stock intervened to the
action This intervention, it was asserted. was
70 back up' Mr. Lord. Briefs are 70 be sub
Znitted hy The lawyers on Friday and il is eX-
pected that Justice Maddox will render a de-
cision next week When the action is tried. the
injunction restraining naturalization may be
granted temporarily, in which case. one of the
lawyers said. there would be triad with wit
nesses in which the entire workings Of the
society would be disclosed.
A sharp unexpected attack on Superintendent
Hendricks Of The State Insurance Department
was made by Edward NJ Shepard Mr.. Horn
blower had just read section of a report by
the Superintendent, praising the directors for
their willingness TO mutualize the society.
ATTACK OK sUPERINTENDENr HEN
DRICKs.
NO reason for haste IS given even in this
brief, which they get from public officer who
Is not a lawyer. who has refused 10 hear us
and who is not here with parties interested in
this controversy. hut is telling stockholders TO
take their stand outside and write letters if
they please. They undertake 10 read us some
thing coming from that source, as though it
would have any effect with judge of the Su-
preme Court sitting on the BENCH spoke up
Mr. Shepard.
I think il is unseemy for counsel TO make
a personal attack on public official" replied
Mr. Hornblower
i do not care whether he IS Superintendent
OF Insurance or what he is-he IS not here. He
has been brought here by this attempt 70 reach
a conclusion by him without cOnceding TO the
opportunity Of a hearing or argument and while
he has been conferring in private with these
gentlemen asserted the irate Mr.. Shepard.
IF an official and he has been requested by
anybody for a hearing upon this matter and
he has denied it, then the sooner the public
knows it the better" Justice Maddox announced.
He has not denied it, Mr.. Hornblower said.
He denied a hearing TO us. and said prac-
tically that the opinion Of the Equitable and
Mutual and two or three other companies, which
he practically represents is, I'm his Judgment
sufficient; he said we could give him a writing
# We pleased. Are TO stand in the outer
darkness while these gentlemen are in con-
sultation with him?" Mr. Shepard demanded, in
tart tones
Mr. HORNBLOWER'S ARGUMENT.
Mr. Zabrislie began proceedings when Justice
Maddox opened court by asking if he might
intervene in behalf Of Mr.. Morse in the action
The lawyers for both sides made no objections
After Mr. Untermyer had announced that he
would file a formal petition for his clients. Mr.
Hornbower took up his argument. No action
taken by The directors could deprive the stock
holders OF their rights in the surplus. he an
nounced. Even in liquidation Of the society
naturalization would not cut off these rights, if
there We're such rights. Nobody questioned the
SsOOO0000, which exceeded all liabilities. in
Guiding payments on al classes Of tontine pol
acies. leaving some S10O0oo90 clear as 4 safety
fund. in this, he declared only the policyhold-
ers could have any interest
The Superintendent Of Insurance had approved
of the naturalization Of the society. he went on.
saying that il was legal. and that while under
the present charter tho stockholders had ,he
right 10 elect directors. no money value attached
20 this privilege so that il it were taken away no
violation of property rights would result
There are only TWO questions involved % wenr
on Mr.. Hornblower. as to the power Of the So
ciety 10 make this change. and whether there is
any Infringement m the property rights Of the
stockholders. Mr Alexander has approved this
stock has consented 10 it. and the directors at
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