Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-08
T.FRYAN ON IHESTANO
At Insurance Inquiry in New
York To-Day,
TELLS OF STOCK DEAL
BOUGHT HYDE INTEREST TO PRE-
VENT A PANIC.
Refused to Answer Many Questions a.
to What Passed Between Him
and Hartman.

Ryan who purchased the control of the
Equitable Life Assurance Society by buy
ing the stock of James II. Hyde. was the
first witness before the insurance investi-
eating committee today.
Mr. Ryan testified that he bought tho
Hyde Equitable stock because he believed
that by so doing he prevented the most tre-
mendous panic the country had ever seen,
which. he believed, would have followed IL
the Equitable had been put in the hands Of
receiver. Mr.. Ryan said that after his
purchase E. II. Hartman, president of the
Union Pacific railroad desired to share in
the purchase Mr.. Ryan refused Mir. Ear-
rimans offer.
Mr.. Ryan declined to answer questions as
to what was said at the conversation be-
tween him and Mr.. Hartman. Mr.. Hughes
said he wanted to know whether there was
any truth in the report that 1t was limited
there would be an investigation of the life
insurance business If Mr. Hartman was not
given an interest in the Equitable.
Declined to Answer Questions.
Mr.. Ryan declined to answer and was up
held in his declination by Paul d. Cravath.
his attorney.
Chairman Armstrong of the committee
said the question proper and should
have been answered. Mr.. Hughes here
asked if Mr. Hartman had said anything
to intimate that anything disastrous would
happen to Mr.. Ryans interests il he refused
to share with Mr.. Hartman. Mr.. Ryan
again refused to answer, although Chalr-
man Armstrong. IN the name of the COM
mittee, directed him to reply. Then, on ad-
vice of counsel, Mr.. Ryan replied that Mr..
Hartman had not made such a threat. Mr.
Ryan said he had directed his counsel TO
make the trusteeship of Equitable stock per-
petual because he did not want any heir OF
his ever to control the property.
At the opening of his testimony MT.
Ryan was questioned about his purchase OF
the Hyde stock in the Equitable. He said
that he paid James II. Hyde s2,3co.0N Tor
the stock.
Did you obtain an advance from any In
sti5gti9n?' n%n'. asked Mr.. Hughes,
Mr.. Ryan added that no one contributed
to the payment, and he said he knew of the
provision In the charter of the Equitable
Society that the stock can pay only per
cent in annual dividends
Foresaw Disaster for Equitable.
He said he was moved to make the pur-
chase because he had large interests that
would be affected by financial disaster, and
that he foresaw such disaster In a receiv-
ership for the Equitable Society. To avert
this he thought he ought to get possession
of the society. His theory was that a man
is not judged SO much by what he is as by
what he does. and IL seemed worth doing
to take this property out of the hands in
which he believed 1t was going 10 destruc-
ton. He determined not to exercise the
voting power: but to put that power into
the hands of voting trustees OF so high
character to be above suspicion.
Mr.. Ryan offered letter which lie had
written to Mr.. Cleveland. and it was read
by Mr.. Hughes. The letter called Mr..
Clevelands attention to the fact that pub
lie confidence had been shaken by the con-
diton in the Equitable Society, and that
the condition of the society amounted to a
public misfortune. 1t described the voting
trustee plan now in operation in the man
agement of the society.
Mr.. Hughes also read another letter writ
ten by Mr.. Ryan 10 the three trustees OF
the Equitable Society, in which Mr. Ryan
said he iS sole owner of the 502 shares of
the Hyde stock and Is under no obligation
to any living man. Mr.. Ryan's letter de-
clared that he would sell his stock only to
the society for its own benefit, but the trus-
tees could not retire it by paying Ryan
81, SOC. .0O0
Not Holding Stock for Hyde.
Mr.. Ryan testified that he got no part Of
his payment of $2,5000o0 back from Hyde
and is not holding the stock for Mr.. Hyde.
Mr.. Hughes asked why Mr.. Ryan represent
ed himself to be acting with other policy
holders when he made the purchase. Mr..
Ryan replied that there were some small
police holders who expressed willingness
TO join him, but they did not do so.
He had heard there were men In Wall
street who had axes to grind and who want
ed to get the stock. He thought that
purchase by these interests might be detri-
mental to the society and give an adyan-
tage to certain financial enterprises. He
denied that he moved himself by any
such influences in getting control OF tie So
ciety. He wanted to shut out from he
Equitables treasure house men who had
interests of their own to advance.
Mr.. Ryan said that, while the term of
the trust was for five years only. he had
agreed to extend It so long as he lives If re-
Quested by the trustees TO do so. He had
requested particularly that the clause In
the purchase agreement providing for such
extension be made binding.
The trustees, he said, did not consult him
to whom shall be elected directors. Mr..
Ryan said the trustees could reject men
chosen by vote of policy holders and that
plan was put into effect because he feared
undesira BILE men might be elected by policy
holders on chance vote.
Agreement Carried Out.
The agreement has been carried out, so far
as Mr.. Ryan knows. The trustees have the
board of directors.
How did It happen that you were willing
to pay 81, ,50o.OOo for stock which you then
put into the hands of trustees and upon
which you get only per cent?" asked Mr..
Hughes.
Il did it for the purpose described" re-
piled Mr.. Ryan. Il thought / was dong q
public service and to prevent the most tre-
mendous panic the country has ever seen
II the Equitable went into the hands OF
receiver" Mr.. Ryan said he thinks the
policy holders are safer under stock owner
ship because there would then be 6 respon-
sible management.
Reverting to Herriman's request for per-
mission to take a portion of the stock. Mr..
RYAN said he thought likely he told Mr..
Hartman he should go ahead with his plan
as he saw fit, regardless of what Mr.. Harri-
man wanted. Mr.. Ryan told Mr.. Hartman
he wanted to be undisturbed in putting the
plan of trustees into operation.
Hartman Tried to Get Stock.
Mr. Ryan did not remember how much
of the stock Mr.. Hartman wanted. and
he declined to say whether Hartman Of
fered to put the stock In trust Mr.. Har-
riman. he said, was the only man who
tried to get share of the stock.
"Our relations became ntrainedn no1d