The San Francisco call., 1905-06-13
GIGANTIC
TRUST COMP ANY
Ryan Proposes to Unite the
Equitable With Mercantile,
and Morton Banking House
CLEVELAND'S WARNING
In Accepting Trusteeship He
Speaks Against Frenzied
Finance Of Present Day

NEW YORK, June 12.-The organization
of the largest trust company in the
United States and one of the largest
financial institutions Of the world was
said to-day to be part of the plan of
Thomas F. Ryan in negotiating the pur-
chase. of the stock of the Equitable Life
Assurance Society held by James H.
Hyde. Ryan's plan was reported to-day
TO be to consolidate the Equitable Trust
Company, the Mercantile Trust Company
and the Morton Trust Company, all of
this city, with the last named in control
1t Is stated that this would result in
creating financial institution with de-
posts second only to those of the Nation
al City Bank of New York, which has
deposits of S1S5 100000. The deposits of the
proposed consolidated trust company
would amount to 1853 000,0 900; the capital
stock S,OO0OOO and the surplus $4,000, O0o
Ryan's plan was reported to-day to con-
template also the elimination of the con-
troll of subsidiary companies by the Equit-
able Life Assurance Society.
Former President Cleveland has writ
ten letter to Thomas +. Ryan concern
ing the trusteeship of the stock of the
Equitable, which he accepts. The letter
was made public to-day and is as follows:
After a little reflection, l have deter
mined 1 ought to accept this service.
assume this duty upon the express con-
dltion that, so far as the trustees are to
be vested with discretion in the selection
of directors, they are 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 di-
rectors conceded to policy holders, fair
and undoubted expression of policy hold
ing choice will be Forthcoming.
while the hope that l might aid in
improving the plight of the Equitable So
ciety has led me to accept the trustee
ship you tender l cannot rid myself OF
the belief that what has overtaken this
company is liable to happen to other
insurance companies and fiduciary organ
iZations as long as lax ideas OF respon-
sibility in places of trust are tolerated by
our people. The high pressure of specula-
ton, the madness of inordinate business
scheming and the chances taken in new
and uncertain enterprises are constantly
present temptations, too often succesSrul,
in leading managers and directors away
from scrupulous loyalty and fdel1ty TO
the interests of others confided TO their
care.
eve can better afford to slacken our
pace than to abandon our old, simple
standards of honesty; and we shall be
safer if we regain our old habit of
looking at the appropriation to per-
sonal uses of property and interests
held in trust in the same light as other
forms of stealing.
Yours very truly, - ARE a-,
GROVER .dIsEvELAND.r
Nine policy holders to-day filed suits of
Intervention in the United States Circuit
Court asking to be made party plaintiffs
with J. Wilcox Browne of Baltimore, who
recently filed suit in the Federal courts
asking that receiver be appointed for
the surplus of the Equitable Life Assur-
ance Society. Browne also asked for an
accounting, claiming the policy holders. of
which he was one, had not received their
just proportion of the surplus, as provided
for in their respective policies.