The Montgomery advertiser., 1905-06-13
MIR. RYANS
 GREAT PLAN Will Organize Mammoth
 Trust Company. HYDE STOCK IS NUCLEUS To Be One of Worlds Biggest
 Institutions. Chairman Paul Morton Prepares Circu- lar Letter to Equitable Agents. Letter from Former Presi-
 dent Cleveland.
HYDE STOCK IS NUCLEUS

New York. June 12.-The organiza- tion of the largest trust company in the United States and one of the iarg- est financial institutions of the world. was said today to be a part of the plan of Thomas F. Ryan in negotiating the purchase of the stock of the Equitable Life Assurance Society held by James H. Hyde.
 MT. Ryan's plan was reported today to be to consolidate the Equitable Trust Company, the Mercantile Trust Com pany and the Norton Trust Company, all of New York, with the last named in control. It is expected that this would result in creating a financial in- stitution with deposits second only to those of the National City Bank of New York, which has deposits of $1s5.000,. 900. The deposits of the proposed con soiidated trust company would amount to $169, 100000; the capital stock to s7.0o0,OoO. and the surplus to $22.6o0.- 900.
 Mir. Ryan's plan was reported today to contemplate also the elimination of the control of subsidiary companies by the Equitable Life Assurance Society.
 Paul Morton, the newly elected chair man of the Board of Directors of the Equitable Life Assurance Society, who went to Washington last night, will not return to New York until wednes- day. It is expected that the work of readjustment of the methods and con- duct of the society's management will then be resumed.
 Thomas F. Ryan, In response to a re- quest for further details concerning the purchase of the Hyde stock. gave out the following statement:
 Ryan's Statement.
 The purchase of the stock was ab- solute and free from any condition or commitment as to future action. The general conditions of the trusteeship Of the stock have already been an- nounced in the letter to Mir. Cleveland. The deed of trust Is now being prepared and will be made public in due course" :"
 Whether the deed of trust will dis close the personnel of the association of which Mir. Ryan Is the head, could not be aseertained today. State Su- perintendent of Insurance Hendricks has finished his investigation of the Equitable Life Assurance Society's af- fairs. Mir. Hendricks was not in town today
 There was no meeting of the Equita- ble trustees today, but a meeting will be held as soon as 1t Is convenient for former President Grover Cleveland to be present.
 Vice-President Gage E. Tarbell said that there would be no meetings of the agents of the Equitable Society in this eity today.
 Chairman Morton has prepared a cir cular letter to the societys general agents informing them officially of his election with plenary powers. He quotes from the letter of Mir. Ryan dealing with the trusteeship and inti- mates that the plans of retrenchment while of sweeping character, will not go as far as to restrict expenditures calculated to add to the society's bus mess.
 Former President Cleveland has written a letter 10 Thomas F. Ryan concerning the trusteeship of the stock of the Equitable. which he accepts. The letter was made public today and is as follows:
 Letter From Cleveland.
 Princeton, June 10. Thomas r. Ryan. Esq.
 Dear Sir---I have this morning re- ceived your letter asking me to act as one of three trustees to hold the stock In the Equitable Life Assurance So- ciety which has recently been acquired by you and certain associates and to use the voting power of such stock in the selection of directors of said so- ciety.
 After a little reflection I have de- termined I ought to accept this ser vice. I assume this duty upon the ex- press condition that, so far as the trustees are to be vested with discre- ton in the selection of directors, they are to be absolutely free and undis- turbed in the exercise of their judg- ment; and that, SO far as they are to act formally in voting for the directors conceded to policyholders. a fair and undoubted expression of policyholding will be forthcoming.
 "The very general anxiety aroused by the recent unhappy dissensions in the management of the Equitable So- ciety furnishes proof of the near re- lationship of our people to life insur- ance. These dissensions have not only injured the fair name of the company immediately affected but have im- paired popular faith and confidence fin the security of life insurance itself, as a provision for those who, in thous- ands of cases, would be otherwise helpless against the afflictive visita- tions of fate.
 "The character of this business is such that those who manage 1t are charged with a grave trust by those who of necessity must rely on their fidelity. In these circumstances they have no right to regard the places they hold as ornamental but rather as po- sitions of work and duty and watch fuIness Above all things. they have no right to deal with the interests en- trusted to them in such way as to subserve or become confused or com plicated with their personal transac- tions or ventures.
 Lax Ideas.
 While the hope that might aid in improving the plight of the Equitable Society has led me to accept the trus- teeship you tender, cannot rid my self of the belief that what has over taken the company Is liable to hap pen to other insurance companies and fduciary organizations as long as lax ideas of responsibility in places of trust are tolerated by our people. The high pressure of inordinate business scheming and the taking on of new and uncertain enterprises are often temptations, too often successful, in leading managers and directors away from scrupulous loyalty and fidelity to the interests of others confided to their care.
 we can better afford to slaeken our nana than fo abandon our old simple