New-York tribune., 1905-06-14
EOUITABLE PROSPECTS.

The change of Equitable ownership and man
agement suddenly accomplished last week by
| Mr.. Ryan and his associates, has unqueston-
| ably alleviated to a considerable extent public
anxiety as to the future Of the society and pro
duced a generally favorable impression. Until
more is known, however than the public has
vet been permitted to know concerning the
transaction full measure of approval Will not
be bestowed. Mr.. Ryan has promised that the
deed of trust will be made public In due
course" That was to be expected-tndeed, 1t
was practically unavoidable-but In our opinion
If viii not be sufficient. There will continue to
be a legitimate and urgent demand for the
names OF the men associated with Mr. Ryan LII
the purchase of majority Of the stock Ihere
Is no disparagement Of MIR. Ryan In saying that
the character of various industrial and financial
operations with which he has been intimately
connected would not have assured cordlai
welcome to the intelligence that he had obtained
control of the Equitable society. Beyond
doubt the feature Of the arrangement winch
has been chiefly instrumental In restoring
large measure Of confidence and In eVok1ng
wide expression of approval is the putting OF
the stock purchased from MIR. Hyde, by deco
of trust, unreservedly In the hands OF Mt
Cleveland, Justice O'Brien and Mr.. Weshng-
house in order that they may appoint a ma
iority Of the directors on the nomination OF the
noIicyhoIders and the rest their sole response
hility. The qualification produced by this an
nouncement was confirmed by the prompt ac-
ceptance Of the trust and has, we are sure, been
increased by the publication Of letter In which
Mr. Cleveland clearly signifies his view or the
methods and tendencies heretofore existent IN
the Equitable management and MS concepuoh
of the manner In which such an obligation
ought To be discharged Mr.. Cleveland says!
1ha character of this business is suoh that
and
a crave trust for those who, necessarily, must
reIy on their fidelity. In these circumstances
they have no right to regard the places they
hold as ornamental, but rather as positions or
work and duty and .watchfulness. Above al
things they have no right TO deal with the IN
terests intrusted to them in such a way as to
| subserve or become confused or complicated
with their personal transactions or ventures.
q. The high pressure Of speculation. the
| madness of inordinate business scheu1ing, and
the chances taken IN and uncertain enter
prtses constantly present temptations, too
/ often successful in leading managers and dtrec-
tors away from Scrupulous loyalty and fidelity TO
the interests Of others confded to their We
abandon our old, simple, American standards Of
| honesty; and shall be safer II we regain our
CID habit Of looking at the appropriation to per-
sonal Of property and interests held in trust
IN the same light as other forms of stealing.
To these words, firmly and impressively ut
tered at the right moment by Mr.. Cleveland In
the act Of accepting the trusteeship, there will
be wide and grateful response. They will be
generally regarded q chart by which men
holding such fduciary relations should be
guided, and they set standard from which the
management Of the Equitable will not be per-
nitted to depart, with the consent of Mr.. Clsve-
land and his co-rustees.
The supposidon is that the lawyers who are
now wrestling with various perplexing legal
problems VIII be able to solve them There are
also some questions relating to the extent Of
the trustees' power and the choice Of their sue
cessors which the publication of the deed Of
trust will presumably answer: but the army Of
policyholders and the general public are en-
titled to additional Information which Mr.. Ryan
cannot afford to withhold. A definite and final
opinion ON all the issues which have been raised
cannot be formed until the report Of the Super
intendent Of Insurance has been published It
is possible that an amendment to ths charter
may be sought From the result Of the inYesh-
cation made under the authority Of Mr.. Hen
bricks 1t may also appear that additional iegds-
lation for the permanent protection Of the im-
mense and peculiar interests represented by
life Insurance companies is reQuired-legisla-
ton, perhaps prescribing the nature Of the So
curities In which their Investments may be
made, and effectively prohibiting Indirect
well as direct betrayals of trust