Warren sheaf., 1905-06-15
MORTON accepts
VERY HIGH Place.
SECRETARY OF THE NAVY, SOON
TO RETIRE, MADE CHAIR
MAN OF EQUITABLE.
Alexander, Hyde and Other Officials
Resign-Majority Control of Stock
Is Relinquished by James II.
: Hyde .

p = new 1OEh,&Juue lU.-1dul MOTLOu,
who retires from the secretaryship of
the navy on July l, was on Friday
elected chairman of the Equitable Life
Assurance society. His election marks
the first and most important step in
the reorganization of the society and
was followed by the tender OF the res.
ignations of President James w. Alex
ander. Vice President James III. Hyde,
Second Vice President J. G., Tarbell,
Third Vice President George~T. Wilson
and Fourth Vice President William H.
Mcintyre. Mr.. Morton, as explained
by Senator Chauncey M. Depew, was
the unanimous choice Of the board OF
directors of the Equitable.
All of the designations submitted to
the meeting are subject to the pleasure
of Chairman Morton, and none has yet
been accepted. Just what action Mr..
Morton will take as to these resigna-
tions was not disclosed, but it was
strongly, intimated that President Alex
ander and Vice Presidents Tarbell.
Wilson and Mcintyre retired with the
belief that their executiveE relations
with the Equitable had ended.
s-s Hyde Gives Up Control.
Mr.. Hyde "divested" himself Of the
majority control, but as made clear in
his letter to the board, retains a. SUBJ
stantial interest in the society. The
interest to which Mr. Hyde disposed
of his stock number some two score
individuals, led by Thomas F. Ryan.
The price paid for the Hyde stock
which is to be trusteed practically in
perpetuity, was not disclosed, but esti
mates vary from $3,500,000 to $5,O0O,-
900. In addition to the SOP shares held
by the Hyde estate, which includes the
widow Of Henry B. Hyde, founder OF
the society, and his daughter, Vice
President Hyde is said to hold between
100 and 10 shares, and it is these
holdings which Mr.. Untermeyers re-
fers to as the "substantial interests"
which his client retains The men re-
quested to hold the majority stock by
Mr.. Ryan are former President Grover
Cleveland, George Westinghouse, OF
Pittsburg, and Morgan J.. O'Brien, re-
Gently elevated to the chief justiceship
of the appellate division of the su-
preme court Of this district.
Victory for Hyde Faction. /
The selection of Mr.. Morton, in the
opinion Of those who have followed
events, is in the nature Of compro-
mise and a victory for the Hyde. fac
ton. In any event the outcome was
seemingly a surprise to some of the
members Of the so-called Alexander
forces. J.
Story of Equitable Trouble.
Mr.. Morton's election is believed to
mean the solution of the controversy
which began between the Hyde and AL
exander factions in the Equitable So
ciety some six months ago, and which
became publicly known in February OF
this year. There are charges of irregu-
larities and gross eXtravagances on
both sides, the fight at times raging
with such bitterness as to threaten the
welfare of the institution, which num-
bers some 100000 policyholders,, with
assets in excess of $4OO,OOO,OOO and
surplus estimated at, $8O,O00,OOO:' Chief
among the charges, preferred by Vice
President Hyde was that President AL
exander, as trustee of the Hyde stock,
was desirous of wrestling control from
the. estate On the other hand, it was
charged by Mr.. Alexander = that Mr..
Hyde and his friends were conducting
the affairs of the society without re
gard for the welfare Of the policyhold-
ers. 9It was Mr.. Alexander's contention
that, the wellbeing of I0the9 society de-
manded its naturalization, that is an
actual voice by vote in the affairs of
the society by every policyholder. Mr..
Hyde agreed; to the plan of mutualiza-
ton, and in the meantime suits against
the society were begun in thisl and
other states resulting in various forms
Of litigation. The plan to mutualize
the society was recently defeated or
stopped by decision of Justice Maddox,
of the supreme court OF this state.
i There were also charges of ''syndi-
cate operations" made by, President
Alexander against Mr.. Hyde and some
Of his associates on the board of di-
rectors of the Equitable, and in reply
to this Mr.. Hyde stated that Mr.. Alex
ander had participated il the opera
tions. AS a result of these revelations,
an Investigating committee was formed
in the Equitable directorate, headed by
H. c.. Frick. The committee presented
voluminOus report, which criticized
practically all the leading executive
officers Of the society. The report was
rejected, whereupon Mr.. Flick and his
associates on the committee, with the
exception of Brayton Ives, resigned
from the directorate, as also did half
dozen Others The proposition to
elect a chairman Of the board of direc-
tors with plenary power to organize
the society in all its branches was then
determined upon, and resolutions were
adopted calling for a complete change
of policy in the executive and financial
department. Mr.. Morton'sa selection
under the conditions named will effect.
these reforms. sge sElii IS. sls 4alr5.H 9Ho.
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