The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-20
MORTON REMOVEST. JORDON.


The Attorney Generals action will however
take precedence over all other actions or
the court calendar.
The activity Of the Attorney General,
Chairman Morton and others in REGARD
to the Equitable's blind loan from the
Mercantile Trust Company was reflected
yesterday in statements by several persons
that within few days several OF the parties
who got money from the Equitable, sup
posed to have been charged to this loan
account, the Mercantile Trust Company
making the payments, will make restitsi-
ton. According to the persons who made
these statements the men who got slice
Of the policyholders' money in this way
are thoroughly scared over the develop
ments OF the last few days and are just
about ready to turn and run.
George Westinghouse, one of the three
trustees of the Equitable ma jority stock
bought from James Hazen Hyde by Thomas
+. Ryan, came out yesterday with plan
for reorganizing the society which in his
society's difficulties. His proposition con-
templates a stock control Of the society
by 5000 .policyholders, each policyholder
to be limited to the purchase Of one share
Of the stock. Mr.. Westinghouse expresses
the opinion that the present trustee ARA hge-
lHeuI tIc COIlITOl Oh Jne society Will only
temporarily satisfy the policyholders.
His suggestions are embodied in letter
which he sent on June q to Paul d. Cravath,
counsel for Thomas F. Ryan. Here is the
letter:
TRINITY BUILDING. NEW YORK..
Paul D. erqraA. Esq. So VIZ M Stree
DEAR MIR. CRAvArH Since my appointment
by MIR. Ryan as one Of the three trustees to
a m nj
ciety have given constant thought to the
subject and to the nature of my obligations
under the deed OF trust.
Notwithstanding the admirable action OF
M. Ryan IN ayerting serious difficulties by
the society and the placing OF the voting
power thereof lrrevocabiy out q his hands.
An s o3nyineeed that Ieal solution which
been reached; In fact. the, proposed man
eesement, Of the affairs Of the society by !, a
" bs 10 1 Rvse hss
given rise to such comment that it seems
evident the present arrangcment may only
holders or the public at large upon whose
cooperation the future success of the So
cety depends.
wishes Of 100000 policyholders "a number
about equal to the voters of New York Ststel
that the trustees can act In accordance
may we'll Welt observe that inil REHABILITATION
OF the society. in the sense in which that term
Is understood. can no better insure wise
ment Of the socletys affairs than Is now
secured through it's present stock control.
May pc 10 su sonton h sn9 sasig
all parties in the selection Of important and
qualified polcyholders as directors of the
i, All shareholders to be invited to PLACE
hands of trustees with the power TO vote for
an amendment to the charter OF the society
- ta) THAT there shall be 5000 shares Of $50
each. instead of 600 shares of 500 each,
To- That no person except polcTholder
'tcj That only one share shall be held by any
single person who must % pary mo GER,
OF the fifty-two directors seven photographers
who have not previously served shall be
2 That the trustees be directed and en-
powered to offer for sale ~ 81 900 per share
the 1000 shares contemplated by the change
In the charter to holders of the 5000 largest
policies, and In the event of any such offer
not being accepted. then to continue TO oher
said shares to the next largest policSholders
until the whole 900 shares shall have been
4. Each shareholder, by a separate instru-
to Gdft 70 from n stss
declaring that they hold in trust one share
OF stock for. such poNcyholder' such feTt,a-
trustees shall be empowered 10 sell for his
st the said p5Ss Di OF
pany. not then shareholder, desiring 10 pnr-
cha Sc the same. u,.
the filing of any vacancy in ne board O., OF
trustees by the remainins trustees. TO be
confirmed by a vote Of the shareholders In
In the selection of 1000 Of the most influential
poliCyholders as cand dates for the posi-
nf greatly
to strengthen the society in the estimation
Of tie PUBLIC These 5000 poidfyheldie n
portant men of affairs and would obviously
represent a very large amount OF the out
standing policies OF he society, me plan.
enced directors. will also insure seven new
directors each year. ,
through YOU for the consideration OF Mr..
Ryan. without whose sanction no plan differ.
ing from that provided in the ,. deed OF trust
GEORGE WESTINGHOUSE.
Mr.. Westinghouse made it plain when he
rave out the letter that he had written it
az a polioyholder of the society and not
with anv authority as trustee.
In formal statement given out at the
same time as the letter, Mr.. Westinghouse
stated that he had suggested his plan after
MI Ryan had made it known that he also
regarded the present stock control as only
of temporary character. Mr.. Westing-
house said that he believed the suggested
nlan when somewhat elaborated, would
give to the Equitable society better govern
ment than could be secured by mutualiza-
ton or by a continuation of the stock con-
troll in the hands of a few persons. The
nlan. he said, was based upon the belief
That the desired reforms can be promptly
accomplished without legislation by con-
certed action on the part of the shareholders
and the Superintendent of Insurance in
amending the charter.
MIR. Westinghouse gave it as his firm be-
lief that there were 5000 public spirited
nolicyholders who would be willing to sub
scribe for the 5000 new shares at a price Of
Il 600 per share. He called attention in
his statement to the fact that less than one
tenth OF / per cent. of the policyholders
have felt sufficiently interested in the af-
fairs Of the society to make suggestions to
the trustees to aid them in the selection of
directors to All existing vacancies.
Mr.. Westinghouse sailed for Europe on
the Cedric shortly after he made public his
letter.
At Mr.. Cravath's office it was said that
the letter had been considered, but that
nothing definite had as yet been done as
regards the suggestion MADE in it,
Several of the minority stockholders
expressed themselves yesterday as very
much in favor of the plan, and they said
they had no doubt that all minority holders
would be glad to accept it.. There are only
hpl