Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-10
MORTON FOR CHAIRMAN
ELECTED HEAD OF EQUITABLE
LIFE DIRECTORY.
James H. Hyde Disposed of Majority
of His Stock to a Group
of Policyholders.

Matters of the greatest Importance to the
policyholders of the Equitable Life AS
surance Society and to the public generally
were announced yesterday afternoon after
the meeting of the soeietys board of d.
rectors in New York. Briefly they were:
l. That James Hazen Hyde the society's
first vice president and the controlling fac
tor in its management, has sold a majority
of the society's capital stock to a group of
policyholders represented by Thomas F.
Ryan. vice president of the Morton Trust
Company.
2. That one of the conditions of the sale
was that the stock shall be placed In the
hands of trustees in perpetuty. these trus-
tees to be vested with power to elect
twenty-eight directors as designated by the
pOlicyholders
3. That Paul Morton. Secretary of the
Navy, has been elected chairman of the
Equitabes board of directors with plenary
power over all the officers and affairs of
the society.
4. That the designations of James w.
Alexander, president: James Hazen Hyde,
vice president; Gage H. Tarbel, second
vice president: George I. Wilson, third
vice president, and William H. Mcintyre.
fourth vice president have been placed in
the hands of Mr.. Morton, subject to what
ever action he may deem necessary after
has made public his report on the investi-
cation of the Equitables affairs.
Morton's Election Almost Unanimous.
Secretary Morton was the almost unani-
nous choice of the board, only two direc-
tors-Brayton Ives, who was a member of
the Prick investigating committee and
Charles Stewart Smith-voting against him.
Mr.. Morton was escorted into the board
room by committee of three directors and
accepted the place after he had made 1t
plain that he would come into the society
only with the understanding that there
should be no strings on him and that he
would be free to recommend the retirement
of the present officers II he sees fit. He
announced after the meeting that he would
resign the position which he accepted re-
Gently as head of the Metropolitan syndi-
cate for the construction of the new sub
way in this city. At that time he stated
that he would retire from the Cabinet on
July /, and it is understood that he will
not assume control of Equitable affairs
until after that date.
Men Behind Hyde Purchase.
Associated with Mr.. Ryan in the group
of policy holders who have bought Mr..
Hyde's stock are eleven men. Among them
are George Westinghouse. who carries $780,
600 in the Equitable; Samuel Newhouse of
Salt Lake City, who has policy for $780,
y,
court of New York state, who is insured in
the society for $160, 600. The exact number
of shares which the group bought from Mr..
Hyde is SOL, the total issue of the capital
stock being 1000 shares. The price paid
was not stated officially. but it was reported
to be between $3,000.000 and 100000.
Morton's Acceptance.
After Mr.. Morton had been elected. a COM
mittee composed Of Mr.. Depew. Mr.. Bel
Il
Mr.. Morton and escort him to the board
room. and the board took a recess. They
found him in a downtown Office and he
was taken quickly to the board room. He
had, of course, been notified that his name
was going to be presented to the meeting
and was expecting the call. He had been
In town for two days and had been confer
ring with representatives of the board.
AS Mr.. Morton appeared In the door of
the board room he was greeted with loud
applause, which was. by the way quite an
unusual performance for the EQuitable's
board of directors, Mr.. Morton took the
floor almost Immediately after he had en-
tered the room. He said that in accepting
the post he wanted to have 1t understood
that he was to have absolutely free hand
as to men and methods in the society. He
promised that he would endeavor to conduct
the affairs of the society in such a way as
to meet the approval of the poicyholders,
directors. agents and all employees of the
company. He thanked the board for the
honor which it had conferred upon him.
President Alexander then surrendered the
chair to Mr.. Morton. This was an affecting
sight Mr.. Alexander had occupied the
chair for many years, for more years, in
fact, than some of the directors could re-
member. and he was vsibly affected when
he turned it over to the secretary.
Mr.. Morton made another speech, explain
ing what he meant by free hand. He
said that he would like to have the officers
of the society place in his hands their resig-
nations to be acted upon at his discretion.
Mr.. Morton explained to the board then
that he would consider the designations only
in the event that the officers were found
guilty by the superintendent of insurance
What salary Mr.. Morton is to receive as
chairman has not been disclosed. 1t was
reported that he would get $4,000 a year
President James w. Alexander gets 500 900
a year.