The Birmingham age-herald., 1905-06-13
ThOs' r. Ryan Has Gigantic Plan for Acquiring Hydes
 Holdings in Equitable
TELLS WHY HE
 ALLOWS USE OF HIS NAME
His Letter Is Severe on Those Who Are Lured Away From Sorupu. lous Fidelity to Sacredness
 of Their Trust

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 today to be a part of the plan of Thomas F. Ryan in negotiating the pur- chase of the stock of the Equitable As- surance Society held by James H. Hyde. MT. Ryans plan was reported today to be to consolidate the Equitable Trust company, the Mercantile Trust company and the Morton Trust company.
 It is expected that this would result in erecting q financial institution with deposits second only to those of the Nat ional City Bank of this city. which has deposits of $1S5 000,000 The deposits of the proposed consolidated trust company would amount to s169 GOO. .oOO and the sur plus s22OO0, GOO
 MT. Ryan's plan was reported today to contemplate also the elimination of the control of subsidiary companies by the Equitable Life Assurance soicety.
 Morton Sends Out Letter.
 Chairman Morton has prepared a cir- cular letter to the societys general agents informing them officially of his election with plenary powers lie quotes from the letter of MT. Ryan dealing with the trusteeship and intinlntes that the plans of retrenchment while of sweep ing character, will not go as far as to restrict expenditures calculated to add to the society's business.
 Chairman Morton in his circular says:
 "The Equitable Society has been seyere- ly tested and the ordeal has revealed to the world its strength and prosperity with an emphasis which could never have been shown significantly by any ordinary method of demonstration. The fears of the timid policy holders have been aroused and many have been alarmed by exaggerated or misleading newspaper articles. But 1t is astonish- ing that the increase in lapses has beeen so small The steadfastness of the body of the societys policy holders under tho strain to which they have been subjected has been as remarkable as 1t has been gratifying. All this furnishes the high est tribute to the excellence of the so- ciety's condition and to the zeal ana loyalty of it's agents.
 ",rhe field force of the society Will pc kept thoroughly posted in reference to future developments. Every enort VIII be made to develop the business along sound lines for the benefit of the poncy holders and agents alike, and pledge you most cordial cooperation in carrying on this work"
 Cleveland Writes to Ryan.
 Former President Cleveland has WITT ten a letter to Thomas r. Ryan eon- corninr inc truteeship of the stock of the Equitable, which he accepts. The letter was made public today and is as fol- l1ows: [ "Princeton, N. J., June l0,-Thomas F. Ryan, Esd: Dear Sir-l have thls morn. ing received your letter asking ne 10 aes l41ld of the Equitable Life Assurance com many. which has recently been acqulreu bv vou and certain associates and to use The voting power of sush stock Tn the se- lection of directors of said society "After A little reflection have des termined 1 ought to accept this service. assume this duty upon the express de- termlnation that, so far as the trustees ara to be vested with discretion In the selection of directors, they are to be ab- soIutelv free and undsturbec in the ex- ercise of their judgment; and that so far as they are to act formally in vot- ing for the directors conceded 10 poncy holders a fair and undoubted expression of policy holding choice will be allowed them
 .eThe very general anxiety aroused by the recent unhappy dissensions In the management of the Equitable society fur nIshes proof of the near relationship or our people to life insurance. These dis- senslons have not only injured the fair fame of the company. but have impaired nopular faith in the security of life in- surance Itself, as a provision for those who. in thousands of cases, would be otherwise helpless against the afflictive vsitatons of fate.
 Are Charged With Grave Trust.
 The character of this business is such that those who manage and direct are charged with a grave trust for those who necessarily must rely upon their fidelity In these circumstances they have no right to regard the places they hold as ornamental, but rather as posi- tions of work and duty ana watchfulness. Above all things, they have no right to deal with the interests intrusted to them in such a way as to subserVe or become conilcted or complicated with their per-
 sonal transactions or ventures.
 While the hope that 1 might aid In the plight of the Equitable society has led me to accept the trusteeship you ten- der. I cannot rid myself of the belief that what has overtaken this company is ia- ble to happen to other insurance compa- nies and fiduciary organizations as long as lax ideas of responsibility In places of trust are tolerated by our people
 ',rhe high pressure of speculation. the madness of inordinate business scheming and the chances taken In new and un- certain enterprises are constantly present temptations and too often successful in leading managers and directors and d. rectors away from scrupulous loyalty and fidelity to the interests of others eonfided to their care.
 we can better afford to saoken our pace than to abandon our old simple American standards of honesty and we shall be safer if we regain our old habit of looking at the appropriation to per sonaI uses of property and interests held in trust in the same light as other forms of stealing. Yours very truly.
 GROVER CLEVEI4AN0I"