The Montgomery advertiser., 1905-07-12
Facts as to Life Insurance
 Companies.
RYAN's IMPORTANT PART
He Controls Another Similar
 Organization.
New York Evening Pest shews UD Some Things Regarding Manly ulations which the Public
 Did Not Know.

New York, July 11.-Chairman Mor' ton of the Equitable Life Assurance so' ciety declined today to talk about the publication of the testimony taken be- fore Superintendent Hendricks. Hs was in conference with his legal ad- yfsers for a long time. and later oe- voted his attention to mass or oocu. ments collected by the experts now ~ work on the Equitable books.
 In a circular letter bearing yester dav's date, Chairman Merton warns all officials and employees of the Society not to discuss publicly the society's affairs.
 .'In the future when there Is any thing to be said, will say 1t. is the concluding statement of Mir. Morton's letter.
 Chairman Morton announced this af- ternoon that he intended to retain the services of Second vice-President Gage E. Tarbell. He said he has a promise of Mir Tarbelrs happy cooperation Tn the reorganization of the soctetys bus- mess and that Mir. Tarbslrs promise. if carried out. will help in no small degree towards the recovery of much or the half year.
 MT. TarbelI and I have agreed to work together for the present. said Mir Morton. He will have chance 70 demonstrate his usefulness to the so- ciety along the lines of his special work and then If we do not agree later wny one or the other of us will leave the society" MT. Morton also said thatths resignation of Archibald c. Haynes local agent for the Equitable. will not be accepted. He added that he expectt MT. Haynes to withdraw the restgna- tion.
 Ryan's Other Holdings.
 The Evening Post today says tnat Thomas F. Ryan, In addition to his purchase of the Hyde stock of the Equitable Assurance Life Society. alsd controls with his associates another life insurance company.
 The Evening Post says:
 When the attention of the financial world was attracted to Thos F. Ryan, traction operator and future builder of subways, by his purchase from Jamer H. Hyde of the 502 shares of stock which controlled the affairs of the Equitable Life Assurance Society, It was knoNn that Mir. Ryan and his as- sociates already controlled one other life insurance company. Since Janu- ary 1 of the present year the affairs of the Washington Life Insurance Com pany have been managed entirely in accordance with the desires of MT. Ryan and others who were associated with him in the Equitable purchase.
 From the time mentioned it has had as president former official of the Mu- tual Life Insurance Company who was given leave of absence for three months by President McCurdy of the Mutual, when 1t was explained where he was to go, and by a Vice-President who happens also to be Vice-Presf- dent of the Morton Trust Company, which. to say the least, the Mutual Life Insurance Company affiliates with.
 Tn February last, general attention was attracted to the affairs of the Washington Life by the report made to District Attorney Jerome by State Su- perintendent of Insurance Hendricks, who declared the mismanagement of its affairs had been simply incompre- hensible.
 One of the first discoveries made by the investigators was that the com- pany was not only involved to the ex- tent that It's surplus was wiped out, but its capital stock was impaired How ever. under its charter, 1t was possi- ble for the capital of the company to be increased to s500,000, and this was done, the company thus being given $375.000 worth of stock to offer for sale"
 "The control of the s125.000 of stock was held by William A. Brewer. Jr., and his associates. Levi P. Morton was a director of the Washington Life. The increased stock was offered for sale at $2o0 share, but no purchaser ap- pared"
 Morton Asked Opinion.
 Continuing. The Evening Post says:
 Tt was when things were In this condition that Levi F. Morton, one Of the oldest of the directors of the Wash ington Life-in fact, the only remain ing charter member-requested an op- ton on the control of the stock (the existing $125. .000 stock) at par, i. e., at $50 a share.
 "As a director, MT. Morton, President of the trust company that bears his name. and of which Thomas F. Ryan Is Vice. President. knew exactly what the details were which had been disclosed by the insurance departments examina- tion With this knowledge he made his offer during the months of December and almost immediately the offer was accepted and the resignations of the ex- ecutive officers of the company were placed in his hands and later those of the Equitable officials were placed In the hands of Paul Morton.
 On December 30. an offer was made by Thomas F. Ryan and associates for the purchase of the $375,000 worth of new stock for $656,250. Of this amount. Thomas F. Ryan contributed s21s.750; Levi P. Morton, the President Of the trust company of which Mr. Ryan Is NtCe-PreSluenl, S6lo, anu Payne Whitney, another director of the same cmpany. $21s.750. By noon on the same day, the sale having been ratified, the money was deposited with the company of which MT. Ryah Is Vice. President. The usual depository of the Washington Life Insurance Company has hitherto been the Chatham National Bank.
 ''The company had balances in four New York banks of over million dol- lars at the end of December. 1904, or nearly IT per cent of all its assets. Shortly after the purchase by MT Ryan and his associates of the new stock the bulk of this sum was transferred to the Morton Trust Company.
 Having thus secured the control Of the company through the new stock. MT. Ryan imediately exercised the op- tion given to his associates. MT. Morton respecting the purchase at par of the Brewer stock. which formerly had con- trolled the company.
 towing to the connection which the Morton Trust Company has with the Mutual Life Insurance Company. 1t was frs.,&auua.a nm PnNa TxSoLl