New-York tribune., 1905-07-20
I. D. JORDAN DISMISSED.
Continued from first page.

Nevada n. stranahan. Collector of the Port,
who was named by the trustees of the Ryan
stock as one of the new directors. has declined
to serve lowing to press of official duties, which
will make II impossible 10 give the time neces-
sary TO devote the proper attention to the work
of the directors" Mr.. Stranahan is one of Gov
ernor Higgins's closest friends, and is also a
warm friend of Superintendent Hendricks. II
was said yesterday that this friendship had
much TO do with his refusal TO serve. as he felt
that he might embarrass the Governor and Mr..
Hendricks In their work
Clerks in the various departments OF the EQui-
table are much dissatisfied with a recent order
from Mr. Morton. that after October 81 they
Will be paid at the end of each month instead of
on the 18th, as is the present custom. Mr.. Nor
ton. in his investigation, found that the Equi-
table by paying its employees in the middle of
the month. was practically advancing to them
pay for two weeks which they had not earned.
He considered this unbusinessike, and deter
mined that the clerks should not be paid until
the time for which the money was due had ex-
pired.
George Westinghouse, one OF the Ryan trus-
tees, sailed for Europe yesterday the Cedric
Before he sailed he made public a plan for a
complete change in the stock system of the
Equitable and a policyholders' control Of the So
ciety through stock ownership His plan would
amount TO a stock retirement allowing Mr..
Ryan to be paid and a new issue OF stock to
policyholders
In his statement Mr. Westinghouse told of
the work done by the trustees in naming new
directors. He said that the plan for mutualiza-
tion proposed by him based on a belief
that the reforms can be accomplished without
legislation by cooperation between the share
holders and the Superintendent of Insurance in
amending the charter Of the society. Less than
one-tenth Of l per cent of the total number of
policyholders have shown enough interest in the
Equitable affair to offer suggestions to the trus-
tees to aid them in their work. STILL Mr. West
inghouse believed that there would be five thou
sand public spirited pocyholders who would
take up the new issue OF stock he recommends,
repaying Mr.. Ryan for what he invested and re-
imbursing all the other present stockholders
Mr.. WESTINGHOUSE PLAN.
The letter to Paul D. Cravath, Mr.. Ryan's at
torney, in which Mr.. Westinghouse set forth his
plan. is follows:
Trinity Building, New-York June d 1905
Paul p. Cravath. esq No. 81 William-st. New
Dear Mr.. Cravath: Since my appointment by
Mr. Ryan as one Of the three trustees to hold for
majority sooet of the STOCK 6eKa Of Ia tae
constant thought 10 the subject and to the nature
9ReeT fRe admrbe 1hf dGd son .! Of Mr.
Ryan in averting serious difficulties by tie pur-
ana the OF Of the G Ho s po%er ffefee f ts TeS
ea6y out Of his hands am & SonvnGed that real
not yet been reached. In fact. the proposed man,
of directors to be selected by the trustees named
by Mr.. Ryan has already given rise to such COM
ment et may may only yery Temporarily SATISFY either the
policynolders or the public al large, upon whose
Pends the future success OF 'he society os
Of q
voters Of New-York state0 that the trustees can
that one may well observe that full mutualiza
ton OF the society. in the sense in which that
term is understood. can, no better insure wise
selection of directors and efficient management
of the socieys affairs than is now secured through
May I be permitted TO suggest the following plan.
in the selection of important and qualified policy
holders as directors of the company
shares with those of Mr.. Ryan in the hands Of
me{ rs S tg oS 70 oey cGte TOT an amend
(al That there shall be 800 shares of SO each
instead Of 1000 shares of 800 each.
Cb) That no person except a policyholder shall
be eligible as director.
single person. who must be a policyho6er.
(d) That at each annual election for thirteen or
the ffty-two directors policyholders who
have not previously served shall be chosen.
Second-That the trustees be directed and EN-
powered to offer for sale at $1,000 a share the
1000 shares contemplated by the change in the
charter 10 holders OF the 5000 largest policies.
cepted then to continue 10 offer said sare = tS
shares shall have been disposed OF.
eh to beome paTy to 4 {e dee Of trui and
to receive certificate from the trustees declaring
polIcyholdeT. such certificate 10 provide that In
the event Of the holder thereof ceasing TO be a
polcYholder. the trustees SHAH be empowered TO
sell for his account at the said price OF $1,000
Pany not then a shareholder desiring to pur-
Fourth-That the deed of trust shall provide for
the filling of any vacancy in the board OF trustees
by the remaining trustees. to be confirmed by
vote or the shareholders IN a manner to be
vided.
believe the foregoing plan would result in the
selection of five thousand of the most influential
pollcyholders as candidates for the position of
society in the estimation of the public. These five
nzed as Important men of afaiTs and wonId 05
viously represent very large amount Of the out
providing for the retention of experienced directors
Will also insure seven new directors each vasr ''
submit the foregoing rough outline through you
for the consideration of Mr. RYAN without whose
sanction plan differing from that provided i'm the
deed of trust can be effective Very truly vours rs Inc
GEORGB WESTiNGH0GSE.
Mr.. Westinghouse made it clear that the srg-
gestion his personally, and in no sense to
be taken as coming officially from him as a
trustee 1t was believed downtown, however,
that his feIlow-trustees would approve the plan.
if they had not done SO already. and that it
would be adopted after Mr.. Ryan had approved
It, Paul Morton would not talk about the
scheme II had been receiving careful consid-
Grafton he said. but no decision had been
No new views could be obtained Yesterday as
TO the legality Of the new directors named bv
the policyholders. Their status depends entirely
on the following sentence in the stock corporation
laws passed in 1892, according to Attorney Cen
eral Mayer: Amy policyholder of an insurance
company may be elected director in that COM
pany. 1t is, however, a delicate point whether
that general law has superseded the charter of
the Equitable, and neither the Attorney General
nor other lawyers interested in the case would
express an opinion. Legal action and adjudica-
tlon alone would determine that II was pre-
dicted.
Senator Chauncev NJ Deperv has interrnrtoa