The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1905-06-16
MORTON ACCEPTS
VERY HIGH Place
SECRETARY OF THE NAVY, SOON
TO RETIRE, MADE CHAIR
~. MAN OF EQUITABLE.

MAN OF EQUITABLE.
Alexander, Hyde and Other officials
Resign-Majority Control Of Stock
Is Relinquished by James n.
Hyde. T s4 -, a~ -e...ss
New York, June 10.-Paul Morton,
who retires from the secretaryship OF
the navy on July J., was on Friday
elected chairman of the Equitable Life
Assurance society. His election marks
the first and most important step in
the reorganization OF the society and
was followed by the tender of the res
ignations of President James w. Alex
ander, Vice President James H. Hyde,
Second Vice President ]. G. Tarbell,
Third Vice President George T. Wilson
and Fourth Vice President William H.
Mcintyre. Mr.. Morton, as explained
by Senator Chauncey NJ. Depew, was
the unanimous choice of the board OF
directors of the Equitable.
..-. ayOe 0Avco W SOAIAoA'
Mr.. Hyde "divested' himself of the
majority control, but as made clear in
his letter to the board, retains a sub
stantial interest in the society. The
interest to which Mr.. Hyde disposed
of his stock number some two score
individuals, led by Thomas F. Ryan.
The price paid for the Hyde stock,
which is to be trusteed practically in
perpetuity, was not disclosed, but esti-
mates vary from $500, 900 to $5,00O,-
900. In addition to the SOP shares held
by the Hyde estate, which includes the
widow of Henry B. Hyde, founder OF
the society, and his daughter, Vice
President Hyde is said to hold between
100 and 10 shares, and it is these
holdings which Mr.. Untermeyer re-
fers to as the Substantial interests
which his client retains. The men re-
quested to hold the majority stock by
Mr.. Ryan are former President Grover
Cleveland, George Westinghouse, OF
>Pittsburg, and Morgan J. O'Brien, re-
Gently elevated to the chief justiceship
Of the appellate division of the su-
| preme court of this district.
Story of Equitable Trouble.
Mr.. Morton's' election is believed to
mean the solution OF the controversy
which began between the Hyde and AL
exander factions in the Equitable So
ciety some six months ago. and which
became publicly known in February OF
this year. There are charges of irregu-
larities and gross extravagances on
both sides, the fight at times raging
with such bitterness as to threaten the
welfare of the institution, which num-
bers some 100000 policyholders, with
assets in excess Of $4OO, 100000 and a
surplus estimated at $50, 100000. Chief
among the charges preferred by Vice
President Hyde was@that President Al
exander, as trustee of the Hyde stock,
was DESTROYS of wrestling control from
the estate. On the other hand, it was
charged by Mr.. Alexander that Mr..
Hyde and his friends were conducting
the affairs of the society without re-
gard for the welfare of the policyhold-
ers.. It was Mr.. Alexander's contention
that the wellbeing of the society de-
manded its naturalization, that is an
! actual voice by vote in the affairs of
the society by every policyholder. Mr..
| Hyde agreed to the plan of mutualiza-
! ton, and in the meantime suits against
the society were begun in this and
other states resulting in various forms
of litigation. The plan to mutualize
| ;o%x Ivy Of
stopped by decision of Justice Maddox,
! of the supreme court of this state.
There were also charges of ''syndi-
| cate operations" made by. President
Alexander against Mr.. Hyde and some
of his associates on the board Of di-
! rectors of the Equitable, and in reply
! to- this Mr.. Hyde stated that Mr.. Alex
| ander had participated in the opera
tons. As a result of these revelations,
an investigating committee was formed
in the Equitable directorate, headed by
H. C.. Prick. The committee presented
a voluminous report, which criticized
practically all the leading executive
officers of the society. The report was
rejected, whereupon Mr.. Frick and his
associates on the committee, with the
exception Of Brayton Ives, resigned
from the directorate, as also did half
dozen others. The proposition to-
elect chairman of the board of direc-
tors with plenary power to organize
the society in all it's branches was then
determined upon, and resolutions were
adopted calling for complete change
of policy in the executive and financial
department. Mr. Morton's selection
under the conditions named will effect
these reforms. <-
Water Main Bursts. -.