The Cairo bulletin., 1905-06-29
MORTON ENGAGES
NOTED LAWYERS
Will Try to Recover Money Be-
longing TO Equitable
RULE AS TO DIRECTORS
NEW CHAIRMAN ANNOUNCES
PRACTICAL REFoRM--WtLL
STOP THAT s25 WHEN
UNEARNED.

New AOfh, June dNi MbItOHt
the new head Of the Equitable Life
Assurance society. announced tonight
that he had retained eminent counsel
and had instructed them to institute
legal proceedings TO compel restitution
to the society of all money and proper
ty to which the Equitable Is entitled
This condition Of affairs has been
forced upon Mr. Morton by the discov-
cries that he has made during the In
vestigaiion BY expert accountants
whom he engaged last week
Morton's sateWents.
He made the following statement:
have retained Austin G.. Fox and
Wallace MacFarlane as special coun.
sci for the Equitable society in con
nection with the investigation OF theJ
past financial transactions Of the 80
ciety by Price. Waterhouse " Co.. and
Haskins & Sell, chartered account.
ants, which is now in progress.
have instructed these lawyers to in-
stitute such legal proceedings as they
may consider to be appropriate tor the
Erecosery u any p,gnes md properly
Efu which tsiN Equitable II found to ha
entitled as The result Of the examin-
lation nav being conducted by the ex-
| perts,
/ 4 have Instructed Measrs. F'ox and
Maclrarlano 60 at once nut themselves
| ia connection with tha attorney gem
eral and the superintendent III insur-
ance, Mr. Hendricks, and 70 act in
harmony with them
Cuts Off Directors.
Mr.. Morton also took occasion tO
announce his first practical reform In
the conduct Of the soclety's business
This Is the cutting off Of the directors
fees. amounting to many thousands
If dollars each year.
4 find that 1t has been the custom
in the Equitable society," said Mr..
, Morton, TO allow directors $25 each
for attending executive committee
meetings also learned Thar these
Z allowances have been paid Ia. the dl-
rectors whether they were present or
absent. have changed all this. Here
/ after no director viii get fees unless
he Ii present all the meeting More
!. over. hereafter no officer or employee
Of the society who receives a salary.
< and who happens to be director, will
3 I'd paid any fee for attending board
\ meetings Of any kind.
More designations Predicted.
. Another reform which Mr. Morton
/. contempIates putting into effect Ii
\ that, beginning with today, thete will
be monthly meetings of the board oi
a directors, Heretofore the meetings
.s Of tse directors have been held quar-
u terry. The first Of these monthly
y meetings was held here today ant
\ Mr. Morton presided for the first time
over the boards deliberations.
There was much speculation toda,
regarding the probable action of This
so-calIea dummy directors at thii
meeting. Reports from apparently au
thoritatlve sources were to the effec
that al least six directors would plac,
their designations in the hands "a fh'
i, chairman, This action, Il was said
I. would be taken ny these directors Il
=, order that Mr., Morton might not b
\ embarrassed In his proposed reorgan
i, izat.on Of the company's affairs.
Grover Cleveland Morgan
, O'Brien and George Westinghouse. tn
~ new Equitable trustees, will meet a
u the home office tomorrow % take AZ
ar tlon On the proposed plan for vosin
j the stock Of the society in the intsl
n ests Of the policy holders. The forr
~ Of proxies has already been printe
j. and will be submitted 10 the trustee
for their approval