New-York tribune., 1905-07-26
MIR. HARRIMAN'S DEFENCE
THOSE EQUITABLE DEALS
Says There Vas Nothing That
WOuld Not Bear Scrutiny

Following the monthly meeting of the directors
of the Equitable Life Assurance soc,etv this
morning special meeting viii be held to-rnor-
row THIS special meeting. il was learned YES
tercay. has been called to consider amendments
20 the bylaws OF the society. These amendments
viii be suggestions MADE by Paul Morton. chair
man OF the board, concerning the REORGANIZATION
of the executive committee il is understood
which in its new form is take the places Of the
cd executive and finance committees
The call for this special meeting reached the
directors yesterday. II read:
A special meeting Of the board OF directors OF
the Equitable Lie Assurance Society of the
United States viii be held In the hoariroou No
10 Broadway. on Thursday July 27 for the
purpose. first TO elect directors TO MI vacancies
and. second. TO amend the bylaws OF the society
Note that the above meeting viii be held on the
day following the regular monthly meeting.
WILLIAM ALEXANDER. Secretary.
At the meeting to-day directors Will be pre-
sented for the boards consideration. They will
be men whose names had been suggested by the
trustees, but were not acted on al the last meet
ing One viii represent poIicyholders OF this
CITY. and one the policyholders Of the South, it
was reported Daniel S Lamont. Mr Cleve-
land's intimate friend and associate in the Cab
lnet had been slated for place in the Equi-
tables directory. it said yesterday, his name
having been suggested by Mr Cleveland and
heartily indorsed by all the trustees.
z Il Hartman did not leave the city yester-
day sor his vacation. as had been expected. He
was busy AT his Office most OF the day. He will
leave here on Thursday. II is understood, to con-
nect with Pacific steamer for japan. He
issued the following statement regarding Equi-
table affairs.
There has been nothing in the relations of
myself or the interests l represent TO the
EQUITABLE Life Assurance Society and its allied
companies that viii not bear the closest scru-
tiny. We have never requested OF, received
favor from them. The financial TRANSACTIONS
between our interests have been Insignificant
and never on terms that could not have been
rssdiIv obtained elsewhere. On the other hand,
We have given the Mercantile and Equitable
Trust companies many valuable trusteeshlIs'
and al the transactions between US have re
suited in material advantage and pront- 10 the
Equitable and its allied companies.
/ personally had one loan with the Equitable
Life which could have been obtained Wlthoul
difficulty AT any other like responsive lnsuIa-
ton on as good or better terms. 1t was pald
because the rate OF interest was higher tnan
was willing 10 pay. and without my even at
tempting 10 have il reduced
There is nothing IN the Union Pacific pre-
ferred stock syndicate that can be criuclsed-
An opportunity was availed OF by Mr.. Hyde TO
-oin myself and associates in the acquisition OF
T-1Ion Pacific preferred stock on a favorable
basis. There no profit or advantage to any
one member Of the syndicate over another ana
neither the Equitable nor any Of its allied com
Lanies or any one else was ever requested 10 aIo
n ary way in financing the syndicate.
like ulany other Of the hfty-two directors, |
attended the regular meetings Wnich we're Hoi0
quarterly. but not member Of any COM
Tlittee nor active in the management
The Equitable controversy was started by an
attempt on the part OF the Alexander faction 10
Gust the Hyde faction, and II was during th4N
contest that the main body OF directors became
Informed for the first time Of the prevailing
Methods of conducting the company's business
by both those factions. This led 70 the appoint
-cer+ of the Frirk committee of which 1 was
member and TO the Frick report which signed
and which fully expressed my views
believe the new naanageInent .,. WI! corIIee r.
the extravasant methods OF conducting the
cor7pany's business pointed out In that report.
IN my opinion these methods inVoiVeo NasuS
greater loss 10 the policy noloers man liI9 pc
Ticular transactions dwelt upon so extensively
by the public press.
There has been TOO much mystery surrop@ @
irR the Equitable affairs. have always peell
10y and willing to answer any questions asked
bv snv one entitled TO make inquiry. and have
never tried IN any way 10 avoid H. ana VIII re-
+r-n tn arnp,e time 10 give any testimony that
may be desired
There IS no authoritative basis for the talk
which has been in circulation in Wall Street that
n. character Of the Equitables securities IN
vestrnents would be changed, il was said yes'er
dav Experts have examined the holdings. ana
have certified that each stock was high class
while the entire lot represented as excellent an
investment those held by any other insurance
company in the country
change from these securities to those of
character held by savings institutions. as has
been recommended. would mean large loss II
was said at least = Of l per cent The average
income now from the securities is Abs per cent
The estimated loss Of z or l per cent would
mean on s4OOOODOOO, some S3oo0Oo0 nearly
half OF the amount set aside TO pay dividends TO
policyholders each year.
James " Alexander. ex-president of the
Equitable. VIII leave Unkeway Farm this morn
ing and 90 direct to the Catskilis. where he VIII
be ioined by his Immediate family. Frederick
2 Townsend who conducts the Unkeway sana-
toriurn says Mr Alexander has heard absolutely
nothing about Equitable affairs, ana mat II
would BE- unwise 10 let him know OF their trend
He is in q fair way TO recover now, said
MI Townsend. but l DO not think ne couIo
stand an ocean voyage
L had been ruEnored that Mr. Alexander was
70 20 abroad n a week so, but IL was learned
yesterday that nothing definite has been decided
this point.
A meeting OF the agency force OF Archibald
c Haynes was held yesterday 10 Talk over the
new fve-year dividend policy and the comrnls-
Eions 10 be paid on il. Mr. Haynes has not yer
considered his resignation, which is TO take
effect next December.