The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-27
MORTON TOGET $SO,0ooAYEAR
HE'S CHOSEN PRESIDENT or THE
EQUITABLE SOCIETY.

directors Accept Alexandcr's Resignation
Hyde VIII Not Get Out--Jeron,e
to Investigate the 66SH 900 Loan
state Bank Department to Aid Him.
The election Of Paul Morton as presi-
Ssnt OF the Equitsple Life Assurance So
eisty and the news that District Attorney
Jerome intends to investigate the $4,000
hind loan were the chief developments
Yesterday In the Equitable situation.
Mr.. Morton was elected to succeed Mr..
Alexander at the regular meeting Of the
hoard Of directors. which was held at II
o'clock In the morning. Another meeting
n the board will be held to-day, at which
the office OF chairman OF the board. which
Mr.. Morton has held, will be abolished.
and the charter OF the society amended
30 az to transfer the plenary powers dele
gated to the chairman to the president.
Mr.. Morton. 1t was reported yesterday,
vl get $4,000 a year in tho new once.
This Is 20 per cent. less than his predecessor
received. The out corresponds with the
reduction made in the salaries Of all the
other officers. The announcement OF Mr..
Mortons election was received In insurance
circles yesterday with general satisfaction.
At the meeting Of the board the resigna-
ton of James W. Alexander as a member
NJ the directorate was accepted. This
ends all connection which Mr.. Alexander
has with the society except az policy
holder.
With Mr. Alexander out, reports were
circulated that James H. Hyde also will
retire Mr.. Hyde did not attend the meet
ing Of the board, but he declared that this
circumstance had absolutely no Significance
and that he had no intention Of getting
out.
The question OF the propriety Of any OF
the directors engaging in syndicate or
other transactions which might subject
them to criticism as members Of the govern
ing board OF the society came up for dis
cussion in a general way, and without any
vote being taken the conclusion was reached
that no member OF the new board should
participate in any transaction in which
the society's funds are involved. The
question Of the society's relations to its SUBJ
sidiary companies was taken up privately.
but was not brought formally before the
meeting. Some members Of the new
board believe that there ought to be
change in regard to the society's owner
ship Of stock in allied companies, that the
line ought to be drawn, IL possible. against
the investment of the society's money
in the stock OF such institutions and that
there ought TO be more distinct separation
OF the society's business interests from
those Of its subsidiary companies.
The societys financial report for the first
six months Of the present year was sub
mitted at the meeting and turned out to
be pretty much Of a surprise to the direc-
tors The report covers, OF course, the
period in which the scandal in the society
has been aired. and 1t was said that 1t
showed much better condition OF affairs
as regards insurance than had been antici-
,pated The report will be made public
to-day.
The board took up the question Of the
discontinuanoe Of pensions including the
$4,000 year paid to the widow Of Henry
B. Hyde. The argument was advanced,
it was said, that some OF these pensions
represented payments for claims which
were held against the society Tor an interest
by the pensioners and could not very we'll
be cut of without compensation.
The matter was referred to 2 committee
composed Of Col. John J. McCook one OF
the old directors. and william Whitman
new members OF the board: They may
present their decision to the board at the
E. B. Thomas. one Of the new policy
holders directors, was elected to the ex-
taken looking toward the reorganization
Of that body. The resignation Of Nevada
~ Stranahan, Collector OF the Port Of New
York. from the board was accepted. Mr..
Stranahan had announced that he was too
IT, rnora novnoa will he presenfed To
the board to-day for election as directors.
The two new ones sci ected by the trustees
are George F. Victor Of the dry goods firm
Of Victor Il Achelis Of this city, and Ernest
B, Kiuttschnitt of New Orleans.
Judge William A. Day, who was APP
pointed acting comptroller OF the society
recently, to succeed Thomas d. Jordan.
was elected comptroller.
The question OF the recent reductions In
salaries in the society and other features
policy were discussed at the meeting. and
It was shown by Chairman Morton that
the curtailnent Of expenses that had already
been accomplished represented a saving OF
MI Jerome's Investigation into the Ses5, 900
loan is going to be most thorough: The
District Attorney, it is understood, will
call not only upon the officers OF the Mer-
camille Trust Company, upon the books
Of which it was carried. but also upon
information,
The State Banking Department now has
complete list Of the payments made on
the loan account. which ranged all the way
from 81 900 to $4,000. and which extended
over a period OF seven years. Mr.. Jerome,
It was said yesterday, proposes to find out
definitely whether any Of this money vas
paid for lobbying fees or for the settle
ment Of Shipbuilding suits. as has been
minated.
First, though, he will ascertain the exact
relationship Of the Equitable society to the
loan. It is expected that the State Bank
ing Department will cooperate with the
District Attorney in this matter.
So far az Mr.. Jerome's investigation into
other Equitable affairs is concerned, 1t Ia
understood that he has been unable as yet
TO discover any evidence Of criminality.
He has, though, found plenty Of things
obliquity. 1t is certain now. it was said
Yesterday. that Mr. Jerome will not bring
any Of the Equitable matters before the
Grand Jury for this month. and not before
the August Grand Jury until late in the
month, if at all.
James W.. Alexander. the Eauitable's