The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-19

than any one else what was the occasion
for the Equitable maintaining stand
ing loan from one Of its subsidiary COM
panies paying per cent. interest when 1t
had on deposit in the same company funds
for which it was receiving only per cent,
cannot, OF course, be questioned. MIR.
Hendricks reported, however, that he had
not up to the time when his preliminary
report was made public been able to find
out definitely what was done with the money
obtained on this loan.
Mr.. Hendricks is still at work on the
problem and SO also are Chairman Paul
Morton and Attorney-General Mayer.
That Thomas F. Ryan has agreed to part
with the majority of the Equitable stock
which he bought from James Hazen Hyde
at the price which he paid for it, $500 .00o
whenever tho directors OF the society desire
it., was verified yesterday by George West
inghouse, one OF the Equitable trustees.
Mr.. Westinghouse gave out this statement
"On June IL, when the deed OF trust was
signed by Messrs. Cleveland, O'Brien,
Ryan and myself Mr.. Ryan volunteered
the statement that he had made the purchase
of the stock with no expectation of profit
and to solve a difficult situation, and that
he was determined to convince the public
that he was acting in the interest Of the
policyhoders. He and Mr.. Root, his coun-
sci, both assured the trustees at that meet
ing that his stock would he available at
cost under any plan for the acquisition OF
the stock by the society or for the benefit
Of the policyhoders, and I understood that
he has Given written assurance to the
same effect to Chairman Morton of the
Equitable board"
This authoritative announcement also
was given out yesterday:
"Messrs. Grover Cleveland, George Vest
inghouse and NJ. j. O'Bren, trustees Of the
majority of Equitable stock announce that
all of the 5O2 shares Of the stock Of the
Equitable Life Assurance Society delivered
to them by Thomas f. Ryan has been trans
ferred to. their names as trustees and that
it is now represented by single certificate
held by them subject to the trust agreement
OF these SOP shares, "a, shares, it was
learned yesterday, stood in the name Of
James II. Hyde, and the other 100 shares in
the names of dummies the men to whom
Mr.. Hyde had transferred five shares each
to qualify them for the board Of directors.
The announcement of the trustees means
that all Of the thirty-two dummies qualified
by the Hyde stock have been done away
with, and that all the new directors will be
qualified as policyholders under the general
provision of the State insurance law, which
says that a folicyholder in any insurance
company is eligible to sit in its directorate.
The Equitable's charter makes the owner
ship of five shares Of the society's capital
stock requisite of qualification, but emf
nent lawyers have expressed the opinion
that the new directors will be able to serve
on the board without complying with this
provision.
Attorney General Mayer was at his Office
in this city yesterday working on tho
suits which he is to bring this week against
the accused directors. Though the At
torney- General would make no definite
statement as to when the papers in the
actions would be filed. it is understood
that he will be ready to proceed against
them by tomorrow. The suits TO recover
the profits wrongfully made will be brought
against the directors individually, but
the action to compel the guilty ones to retire
from the board will he general in form.