Daily Kennebec journal., 1905-07-12
Ryan and Morton Bought
The Equitable Stock
On the Mutual Advantage
Scheme for individual Gain.
Former Interested In Washington Life.
Morton Trust Co. Handles Cash.

ooCiCtS oeCIliCu, loudJ, " dOout
the publication of testimony taken be-
fore Supt Hendricks. In q circular let
ter Chairman Morton has warned all
officials and employees of the society
not to discuss publicly the sOcietys af-
fairs.
I'm the future when there is any
thing to be said, i will say it," is the
concluding statement OF Mr.. MOrton's
letter.
Mr.. Morton announced, today, that
he intended to retain the services of
Second Vice President Gage f. Tarbe!l.
He said he has q promise of Mr. Tar
bells happy CO. operation in the re-
organization of the society's business
and that Mr.. Tarbell's promise. if car
ried out, will help i'm no small degree
towards the recovery of much of the
business that has been lost within the
last half year.
The Evening Post, today, will say
that Thomas F. Ryan, in addition to
his purchase of the Hyde stock of the
Equitable Life Assurance Society, also
controls, with his associates, another
life insurance company. The Evening
Post will say:
"Hcl Tic dttCHllOU VI lIlc IlIiduCldi
world was attracted to Thomas F..
Ryan. traction operator and future
builder of subways, by his purchase
from James ii. HYDE of the 502 shares
of stock which controlled the affairs Of
the Equitable Life Assurance Society,
it was not known that MI. Ryan and
his associates already controlled one
other life insurance company.
"Since Jan. l of the present year the
affairs of the Washington Life Insur-
ance Co., have been managed entirely
in accordance with the desires of Mr..
Ryan and others who were associated
with him in the Equitable purchase.
From the time mentioned 1t has had as
president a former director of the Mu-
tual Life Insurance Co, who was given
'ieaTe of absence" for three months
by President McCurdy of the Mutual.
when it was explained where he was
to go and by vice president who hap
pens also to be a vice president of the
Morton Trust Co, which, to say the
least, has Mutual Life Insurance Co.
affiliations.
I'm February last. general attention
was attracted to the affairs of the
Washington Life, by the report to Dis
trict Attorney Jerome by State Supt.
of Insurance Hendricks. who declared
that the mis-management of it's affairs
had been simply incomprehensible.
"One of the first discoveries made by
the investigators was that the COM
pany not only was involved to the ex-
tent that its surplus was Wiped out,
but it's capital stock was impaired.
However, under its charter, it was
possible for the capital of the COM
pany to be increased to 100000 and
this was done. the company thus being
given S375, 900 worth of stock to offer
for sale"
The control of the s125,OO0 of stock
was held by William A. Brewer, Jr..
and his associates. Levi p. Morton was
director of the Washington Life. The
increased stock was offered for sale at
500 n share, but no purchaser ap-
peared.
Continuing the Evening Post says:
1T was when things were in this con
dition that Levi =. Morton. one of the
Oldest OF the directors of the Washing
ton Life-in fact. the only remaining
charter mcmber-requested an optlon on
sl25, 900 stock, at par-i. e.. at $50 q share.
LAS director Mr. Morton, president
of the trust company that bears his
name. and of which Thomas +. Ryan Is
details were which had been disclosed by
the insurance departments examination.
With this knowledge he made his offer
during the month of December, and al
most Immediately the offer was accepted.
and the resignation Of the executive oftl-
GERS of the company were placed n ms
hands. and later those of the Equitahle
officials were placed in the hands of Paul
Morton.
ION Dec. 60. an offer was made by
Thomas +. Ryan and associates for the
purchase of the $3i5,OOO worth OF new
stock for $3.50, 80. OF this amount. Thom-
as F. Ryan contributed $21S7J0 Levi p.
Morton. the president of the trust COM
pany a1s Of which MI Ryan Is vice @,ItnaH Rres
another director of the same company,
s21S, 80. BY noon on the same day, the
sale having been ratified the money was
deposited with the company of which Mr..
Ryan is vice president.
.'The depository of the Washington
Lift Insurance Co. had hitherto been the
Chatham National Bank.
The company had balances an @ in four New
York banks of over $1,0000O0 at the end
of December, 1904, or nearly II per cent.
of all it's assets. Shortly after the pur.
the new stock. the bulk of this sum was
transferred to the Morton Trust Co.
"iiaving thus secured the control Of the
company through the new stock Mr.. Ryan
associate, Mr.. Morton, respecting the
purchase at par of the Brewer stock
which formerly had controlled the COM
Owing to the connection which the
Morton Trust Co. has with the Mutual
Life Insurance Co, it was perhaps not
surprising that Mr.. Ryan should have
looked in that direction when he came to
choose a president for his new concern.
He picked cut the then associate actuary
whom President McCurdy promptly gave
a leave of absence for 80 days. For vice
president he chose Charles F. Allen, ex-
governor of Porto Rico. Mr.. Allen was
then. and is now, also a vice president
Of the Morton Trust Co"
"A meeting of the trustees of the major
ity stock was held at the Hotel Bucking-
ham, today. 1t was said that sugicient
business Of the society, and 1t was also
said that now all the vacancies were
nuSos