New-York tribune., 1905-05-10
EQUITABLE STOCK IN WAY.
BRIEFS IN LORD SUIT.
j. Edrdrd Simmons Is Talked OF
for Society's Head.


conference of directors of the Equitable one
of the largest minority stockholders said yester-
day that he believed the only way the diff
culties of the society ever could be reconcied
would be by the retirement of the stock Sew
eral of the other stockholders are known TO be
not averse to the retirement of the stock. and 1t
Is believed by friends of Mr.. Hyde that he might
consent too. under certain conditions
There is no provision in the charter as it
stands by which the directors could vote TO re-
tire the stock. The committee of directors
which. in connection with the first naturalization
negotiations canvassed this question was told
by the six lawyers retained as counsel that only
by legislative action could the stock be retired.
A new law would have to be passed. empowering
the directors to vote TO compensate the stock
holders.
THE Equitable could not succeed surely, as
q polcyholders company If the Lord suit were
not successful" said the stockholder referred to-
ct seems TO be our OF the question that II shall
continue purely a stockholders company, as at
present II naturalization is permitted the only
way in which the pOlicyholders could be of
pure administration OF the society for their
interests is by voting committee made up of
men like Morris K. Jesup and Alexander E. Orr,
men with no personal interests in the society,
whose regulations would be at stake according
10 the way they managed the society The
dlnary voting committee which handles policy
holders proxies would be out Of the question.
It's effects are plain in other mutual companies
This plan has worked we'll with the Northwest
ern which bears high reputation in the insur-
sIce world
On that case the stock would have TO be re-
tired. Some decision eventually will have to be
made as TO the rights of the policyholders and
the stockholders in the surplus, and it seems
iS
titled TO some compensation for the loss Of it's
powers, if retired. Mr.. Alexander's letter to Mr..
Woods. declaring that the policyhoders should
have all the surplus. does not agree with
Of his former opinions, when he said there was
some S10,O00,0o0 reserve fund, above all out
standing debts and insurance liabilities, to which
the poIicyholders had TO claim"
Final briefs were filed for the Equitable Life
Assurance Society, defendant in the Lord action
TO prevent naturalization, before Justice Maddox
in Brooklyn yesterday. The lawyers. Messrs.
Hornblower Cohen. Colby and Joline. who are
President Alexander's personal counsel, deny
that he had violated the Hyde trust in his
efforts TO have the Equitable mutualized They
say a strong demand has been made for mutual
ization
Nothing in the trust deed compels the trustee
10 protect the rights OF the stockholder declares
tie brief, in to Mr. Hydes charges that
President Alexander had violated the trust. The
duties Of the trustee IL SAYS, are TO vote for
directors and collect dividends by proxy. Mr..
Hyde is twenty-eight years old. and he and Mr.
Mcintyre form a majority Of the acting trustees,
and so are able to put into force any action they
desire, against Mr.. Alexander's protest, their
decision being binding.
The suggestion thar Mr. Alexander has in
any way been deTelict in his duty as trustee by
reason Of having favored naturalization of the
society in the line indicated by the original
charter 10 a greater and more liberal extent In
me ic with a0u lotto 4la
brief says He has cast no vote as member
Of the board Of directors which has not been
concUrred In by Mr.. Hyde"
Many Of the directors yesterday received sum-
monses in the new suit which Senator Bracket
IS bringing on behalf Of Mrs. Mary S. Young in
Saratoga County. Mr.. Hyde has accepted SER
vice, and the other directors are making OBJ
lection. The complaint has not been filed yet, so
the directors are Ignorant of the allegations In
the new suit. Mr.. Hyde yesterday had con-
Eultation with his lawyers and one or two Of the
directors about the suit.
J. Edward Simmons. president Of the Fourth
National Bank was mentioned yesterday as
possibility for president Of the EqOita bic. or for
the still more important place suggested at Mon
days conference OF directors. the executive"
who should have even more power than the pres
ident Mr. Simmons asked to be excused from
talking about the report If the place were Of
fered 10 him, it is believed that he would
cept IT, but person closely IN touch with
Equitable affairs said Mr. Simmons was not
being considered If he were elected he would
be an independent, 1t is said. although the Hyde
people would be glad of the choice.
According TO a director no immediate
cessor could be named for President Alexander,
because the board could not turn him out of the
society. The directors. he said had not the
power to dismiss regularly elected officer until
his term had expired unless he proved to
have been guilty of wrongdoing. when the State
Superintendent of Insurance would remove him
on charges.
An application will be made TO vacate the
order granted to A. Edward Woodruff counsel
for Herbert G. Tull, of Philadelphia, for an
animation Of President Alexander, Mr.. Hyde
Torha iG refir Ila on,
Thursday before Justice Bischof in the Supreme
Court. The threatened suit to oust President
Alexander as trustee of the Hyde estate is not
materializing, promised.