The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-13
10 GUARD P0LICYHOLDERS,
CLEVELAND TELLS OF HIS PLANS
N LETTER TO RYAN.
Declares That the Eauitsbles Plight
Is Warning to other Insurance
Companies -Morton's First Official
Act a Letter to All Agents.

Act Letter 10 All Agents.
Thomas F. Ryan vest erday made public
Grover Cleveland's letter to him in which
Wr Cleveland consents to serve az trust ~
ofthe HYDE Equit able stock bought by he
RYAN pocyholders' group Here it is;
PRINCETON, Juno 10, 1906
.ThJraS F. Ryan ESQ.
DEAR SIR: have this morning received
your letter asking me to act as one of the
three trust ees to hold the stock Of the
Eoni'able Life Assurance Society which
ha. lately heea acquired by you and Ger.
tain associates and to Use the voting power
Of such stock in the selection of directors
of said society.
After lit lie reflection have deter.
mined ought to accept this service.
assume his duty upon the express condi-
ton that as far "a the trust ees are to be
vested wit discretion in the selection of
,irectors they are to be absolutely free
and undist urbed in tho exercise of their
judgment, and that 50 far as they are to act
formally in voting for the directors con-
coded to policyholders a fair and UNI
doubted expression Of policyholciing choice
will ha fort hoo ming.
The v,ry general anxiety arous ed by
the recent unhappy dissensions in the
management Of the Equitable society
furnishes proof oi the near relationship of
our people to life insurance. These dis
sensions have not only injured the fair
iame Of the company Immediately affected.
but have impaired popular faith and CON-
fdanca in the security of life insurance
itself as a provision for those who in thou
sands Of cases would be otherwise helpless
against tho affective visitations of fate.
The character OF this business ia such
met those ~ho manage and direct it are
charged with grave trust Tor those who
reces 'ariy must rely upon their fidelity
In these circumstances they have no right
toregari the places they hold as ornamental.
but rather as positions of work md duty
and watchiulness. Above all things. they
have no right to deal with the interests
entrusted to them in such q way as to sub
serve or become confused or complicated
while the hope that might aid in i'm,
proving the plight o. the Equitable society
has led me to accept the trusteeship you
tender, cannot rid myself of the belief
that what has overtaken this company Is
liable 70 happen to other insurance COM
ranies and fiduciary organizations as long
as lax ideas of responsibility OF trust are
tolerated by our people. The high pressure
OF speculation. the madness OF inort!inate
business scheming and the chances taken
in new and uncertain enterprises are con-
SANITY present temptations. too often sue
ceesful in leading mana gers and directors
away from scrupulous loyalty and fidelity
10 the interests Of others c1H!ided to their
care.
"Wc can better afford to slacien our
pace than to abandon our old, simple
American standards Of honesty, and W,
shall be saier l., we regain our old habit OF
looking at the appropriation to personal
in the same light as other forms OF stealing.
Yours very truly. GROVER CLEVELAND"
This is the reply Mr.. Ryan sent yesterday:
MY DEAR Mr.. CLEVELAND: | have
your letter OF the 10th inst, in which You
formally accept the appointment to &C, as
one Of the trustees OF majority of the
stock Of the Equitable Life Assurance So
ciety. heartily concur in the sentiments
YOU express and in your statenfent of the
purposes to he accomplished b. placing
this stock IN the hands Of yourself, Judge
0'Bren end Mr.. Westinghouse IS t ustees
in order that the directors OF fine society
NAV be selected by the trustees abso-
Iuteiv in accordance with their hwn judg-
nent and the wishes of tire policyholders.
thanking You for the personal sacrifice
which YOU nave made in undertaking to
perform this important public duty,
am very truly yours,
THOMAS F. RYAN"
Mr.. Ryan announced yesterday that the
deed of trust under which ,lr Cleveland,
Mr.. Westinghouse and Justice O'Brien will
serve is now being prepared and will be
made public. Mr.. Ryan added:
The purchase of the stock was absolute
and free from any condition or commit
ment as to future action"
Superintendent OF Insurance Francis
Hendricks, it was announced yesterday,
has finished his examination of the Elu-
table officers and directors, and vii! make
his report the latter part of this week.
Pau Morton is coming here on Wednes-
day to attend meeting Of the executive
committee. His first official act as chair
man of the directors was the sending out
Yesterday of a letter to Equitable agents in
which he said
To the Agency Force Of the Equitable Life
Assurance Society OF the United States
GENTLEMEN: On the 9th Of June the
hoard of directors of the Equitable Life
Assurance Society Of the United States
created the Office of chairman of the board
With "plenary power over ali OF the depart
ments and officers OF the society, subject
to the control of the board OF directors"
and amended the bylaws to correspond.
honor OF electing me TO this office also
electing me member OF their board. !
accepted the Craftsmanship on condition
that | should have free hand as to meae-
'Tes and men. As response to this. (le
chief executive officers Of the society volih-
iarily placed their designations in my
hands to be acted upon or not hereafter, in
accordance with what might appear to be
the best interests of the society and its
polcyholders.
The Equita BILE society has been severely !
tested and the ordeal has revealed to the I
world its strength and prosperity with an
emphasis which could never have been
shown AS significantly by any ordinary
method of demonstration. The fears of |
i'mid poiicyhoders have been aroused !
and many have been alarmed by exag-
Errated or mslead ding newspaper articles.
hut II ia astonishing that the increase in
Iapses has been so small. The steadfast-
ess Of the body of the society's policy
,holders under the strain to which they
have been subjected has been as remark
ahIo as il has been gratifying. All this
furnishes the highest tribute to the excel
lence Of the sooiety's condition and to the
aeal and loyalty Of its agents.
The field force OF the society Is to be
Congratulated on what is believed to be the
complete solution OF the difficulties which
nave temporarily hampered them and
arrested their progress in competing for
business You will be kept thoroughly
oosted in reference to future developments.
Knowing that every agent is doing
everything in his power to take care Of
me business already on the books, l need
not dwell on that point. Every effort will
ne made to develop the business along
sound lines for the benefit Of policyholders