Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-12-08
THOMAS 7. Ryan
ON STAND TODAY
He Tells Why He Purchased
Control of the Equitable Life
Insurance Company
FEARED A FINANCIAL PANIC
Believed Placing of the Company in
Hands Of Receiver Would Have
Been National caIamity-Harriman
Wanted In, But Ryan Refused to
Give Him Any Share in Control.

New York, Dec. S.-Thomas F. Ryan,
who purchased control of the Equit-
able Life by buying the stock Of
James H. Hyde, was the first witness
before the insurance investigation
committee today.
Ryan testified that he bought the
Hyde Equitable stock because he be-
lieved that by SO doing he prevented
had ever seen, which he believed would
have followed If the Equitable had
been put in the hands of a receiver.
Ryan said that after his purchase Fl
HI. Hartman desired to share in the
purchase. Ryan refused Harriman.s
offer. Ryan declined to answer .ques-
ttons as to what was said at the con-
versation between him and Hartman.
Hughes said he wanted to know
port that 1t was limited there would be
an investigation of the life insurance
business II Hartman was not given
an interest in the Equitable. Ryan de-
clined to answer and was upheld in his
decHnation by Paul d. Cravath, his
attorney. Chairman Armstrong said
the question was proper and should be
answered.
Hughes here asked If Hartman had
said anything to indicate that anything
disastrous would happen to Ryan's
interests If he refused to share with
Hartman. Ryan again refused to an
sWer, altho Armstrong in the name Of
the committee directed him to reply.
Then, on advice of counsel Ryan re-
Piled that Hartman had not made
such a threat. Ryan said he directed
his counsel to make the trusteeshfp of
the Equitable stock perpetual because
he did not want any heir of his ever
to control the property.
Paid Hyde $2,5oo,oo0.
Ryan said that he paid Hyde two and
half million dollars for the latter's
,, stock. He did not obtain an advance
from any institution. No one contrib
uted to the payment He knew of the
provisions in the charter of the Euui.-
able that the stock can pay only per
cent in annual dividends He said he
was moved to make the purchase be-
cause he had large interests Tint would
he affected by financial disa ster and
that he foresaw disaster in a receiv-
ership for the Equitable To avert his
he thought he ought to get possession
of the society. His theory was that
a man is not judged so much by what
he is as by what he does and II seemed
worth doing-to take this property out
Of hands in which he believed it was
Eoing to destruction. He de-.rmined
not to exs .c,se voting power, but to
put that power into the hands of vot-
ing trustees Of so high character as
to be above suspicion.
Appeal to Cleveland.
Ryan offered letter which he had
written to Grover Cleveland and it
was read by Hughes. The letter called
Cleveland's attention to the fact that
public confidence had been shaken by
conditions in the Equitable and that
the condition Of the society amounted
to a public misfortune. It described
the voting trustee plan now in opera
ton in the management of the society.
Hughes also read another ,et@e" by
Ryan to three trustees Of the Equit-
able in. which Ryan said he is sole
cwner of 502 shares of the Hyde stock
and is under no obligation to any liv-
ing man. Ryan's letter declared he
would sell his stock only to the society
for it's benefit, but the trustees could
retire it by paying Ryan two and a
half million. Ryan testified he got
no part Of his s2,5Oo,00o payment back
from Hyde and is not holding the stock
for Hyde. Hughes asked why Ryan
represented himself to be acting with
other policyholders when he made the
purchase Ryan replied there were
some small policyholders when he
made the purchase. Ryan re-
piled there were some small policy
holders who expressed willingness to
Join him, but they did not do so. He
said there were men in Wall street
who had axes to grind and wanted to
get the stock. He thought purchase
by these interests might be detr'men-
tage to certain financial enterprises.
He denied he moved himself>by an such
influences in getting control of the So
ciety. He wanted to shut out from
the Equtiable's treasury house the
men who had interest Oh thelr own
to advance.
New York, Dec s.-Attention was
directed to the possibility Of criminal
action growing out of the investigation
Of life insurance methods by a visit
paid by District Attorney w. T. Jer-
ONE to the legislative committee while
it was holding its hearing in the city
hall yesterday. Mr. Jerome said that
he wanted to find out when he could
get possession Of copy of the report
Of the committee. Chairman Arm
strong already has said that he hopes
to have it ready for the legislature
when it meets next January.
Counsel for Thomas f. Ryan, VINO
bought the James n. Hyde stock OF the
Equitable Assurance Society, conferred
with Charles r. Hughes. counsel for
the investigating committee yesterday