New-York tribune., 1905-06-13
HYDE STOCK LETTERS OUT.
Mr.. CLETELAND'S VIEWS.
Doubts as to Legality of Sale
Henry CIescs ON Equitable.

AS an important part OF his investigation OF
the Equitable Life Assurance Society, Superin-
tendent Hendricks of the State Insurance Do
partment is likely to summon James II. Hyde
and William H. Mcintyre. trustees of the Hyde
stock. and Thomas f. Ryan, head of the syndi-
cate which has purchased it, to tell the details
of the purchase. Mr.. Hendricks, who. it was
understood was at Newburg yesterday in con-
sultation with Ex-Governor Odell, probably will
be In this city to-day.
|. Superintendent Hendricks has heard the re-
ports that the sale of the stock was merely q
temporary expedient to still the clamor which
had arisen for general housecleaning in the
Eouitable and the opinions of lawyers that the
Hyde stock could not be sold legally, under the
terms of the will OF Henry B. Hyde, before
James Hazen Hyde's thirtieth birthday. He has
determined. it reported last night. to learn
from Mr.. Hyde the exact terms on which he
turned over the stock control to "Mr. Ryan and
associates He will ask Mr.. Ryan to tell who
his associates are. One stipulation in the agree
ment of sale, it was asserted was that the
names OF the persons associated with Mr.. Ryan
should not become public.
If Superintendent Hendricks does not return
to this city to-day he will be here tomorrow.
continue his investigation. The examination of
witnesses will go at the offices of the Insur-
vestigation will not end with the report which
is expected this week, but may last until Sep
tember.
NJ E DriscoI Superintendent Hendricks's
counsel is drawing the report now, and hopes
to have it ready in a day or two when 1t Will
be filed at Albany. This report will cover only
certain lines Of the investigation, more espe-
ciaIiy those involved in the present trouble. A
supplemental report probably will be made.
embodyins the more distinctly technical feat
ures Of the investigation and those portions
taken UP from now on
Po1icvholders of the society are taking lively
interest In Mr.. Ryan's Syndicate" which is to
be an association of policpholders OF all
classes" The policyholders' committee of which
John D. CriInmins Is chairman. will hold a meet
,ns, in q day or two to see whether it shall apply
for representation"
DOUBTS LEGAL TRANSFER OF HYDE
STOCK.
A lawyer closely in touch with the Equitable
affairs declared that unless there was much
mora in the transaction than had been made
public no sale of the Hyde trust stock to Mr'
Ryan and his friends could be legal He was
inclined to think that what was called a sale
had been a transfer Of the trust TO the three
trustees named by Mr.. Ryan
tees will make no difference in the suit Of
Franklin B. LORD to stop naturalization. Even
if the directors who will represent the policy
holders are elected by the trustees, they will be
no more legal directors than the present So
called dummies" says lawyer who repre-
sents some OF the minority stockholders in that
litigation. He has heard of no movement among
the minority holders TO enjoin the transfer OF
the stock. Such action will have TO wait until
the trustees tried to elect directors. he says.
Wall Street still is anxious to know on what
conditions the trustees are to work, and whom
they are to represent In answer to questions
embodying those points. Mr.. Ryan yesterday
gave out the following formal statement:
The purchase OF the stock was absolute and
free from any condition or commitment as to
future action.
The general conditions of the trusteeship of
the stock have already been announced IN Ine
letter TO MIR. Cleveland
The deed of trust is now being prepared ana
will be made public IN due course.
Whether the deed of trust will disclose the
personnel of the association Of which Mr.. Ryan
is the head could not be ascertained
MR. CLEvEI.AND's LETTER OBJ ACCEPT
ANCE
Mr.. Bryan has received Grover Cleveland's
formal letter accepting the place of trustee for
the Ryan syndicate. 1t folloWS:
have this morning received your letter ask
ing me to act as one OF three trustees to hoId
the stock of the Equitable Life Assurance So
ciety, which has lately been acquired by you and
certain associates. and to use the voting power
of such stock in the selection Of directors Of said
society. After q little reflection, l have deter
mined ought to accept this service. 1 assume
this duty upon the express condition that so
far as the trustees are to be vested with discre
ton in the selection of directors, they to be
absolutely free and undisturbed in the exercise
Of their Judgment; and that, SO far as they are
TO act formally in voting for the directors con-
ceded to policyholders, fair and undoubted ex-
preston of policyholding choice will be forth
coming.
The very general anxiety aroused by the re-
cent unhappy dissensions in the management Of
the Equitable society furnishes proof of the near
relationship of our people to life insurance.
These dissensions have not only injured the fair
fame OF the company Immediately affected but
have impaired popular faith and confidence in
the security Of life insurance itself, as a pro-
vision for those who, IN thousands of cases.
would be otherwise helpless against the affiic-
tive vistations Of fate.
The character of this business is such that
those who manage and direct it are charged
with a grave trust for those who, necessarily
must rely on their fidelity In these circum-
stances they have no right to regard the places
they hold as ornamental, but rather posi-
tions of work and duty and watchfulness. Above
all things they have right to deal with the
interests intrusted to them In such a way as to
subserve become confused or complicated
with their personal transactions or ventures.
While the hope that might aid In improving
the plight Of the Equitable Society has led me
to accept the trusteeship you tender. cannot
rid myself of the belief that what has overtaken
this company is liable to happen to other insur-
anoe companies and fduciary organizations
long lax ideas Of responsibility IN places of
trust are tolerated by our people. The high
pressure of speculation, the madness of inordi-
nate business schening and the chances taken
in new and uncertain enterprises are constantly
present temptations. too often successful IN
leading managers and directors away from
scrupulous loyalty and fidelity to the interests