The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-06-13
Will Be Largest in the
United States.
OUT OF THE EQUITABLE
Formidable Combination Will Be AT.
tempted. Letter From Grover
Cleveland. A Circular Let
ter to General
Agents.
(By the Associated Press.)


ton of the largest trust company in
the United States and one of the lar
gest 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 Equit
able Life Assurance Society, held by
James H. Hyde Mr.. Ryan's plan was
reported today to be to consolidate the
Equitable Trust Company, the Mercan-
tile Trust Company and the Morton
Trust Company, all of this city. with
the last named in control. 1t is ex-
pected that this would result in Great
ing a financial institution with depos
it's second only to those of the Ma
tional City Bank of this city, which
has deposits of $1S5,000.000. The de-
posts of the proposed consolidated
trust company would amount to $780,
co., 900. the capital stock to $1,000
900. and the surplus $22, ZOO. Mr.
Ryan's plan was reported today to
contemplate also the elimination of
the control of subsidiary companies by
the Equitable Life Assurance Society.
Thomas f. Ryan in response to a
request for further details concerning
the purchase of the Hyde stock, gave
out the following statement:
THE purchase of the stock was alb
soute and free from any condition or
commitment as to future action.
1.-The general conditions of the trus-
teeship of the stock have already been
announced in the letter to Mr.. Cleve-
land.
1.-The deed of trust is now being pre-
pared and will be made public in due
course"
Chairman Morton has prepared a
circular letter to the Socetys general
60. toll Of
election with plenary powers. He
quotes from the letter of Mr.. Ryan,
dealing with the trusteeship, and init
mates that the plans of retrenchment.
while of sweeping character, will not
go so far as to restrict expenditures
calculated to add to the Society's bus
mess.
Former President Cleveland has
written a letter to Thos. F. Ryan con-
corning the trusteeship of the stock
of the Equitable which he accepts.
The letter was made public today, and
is in part as fellows:
After little reflection I have de-
termined I ought to accept this ser
vice. / assume this duty upon the eX-
press condition that so far as the trus-
tees are to be vested with discretion
in the selection of directors they are
to be absolutely free and undisturbed
i'm the exercise of the Judgment and
that, so far as they are to act formally
i'm voting for the directors conceded to
policyhOlders, a fair and undoubted
expression of policy-holding choice will
be Forthcoming.
1.-THE anxiety aroused by the UNI
happy discussions in the management
of the Equitable Society, furnishes
proof of the near relationship of our
people to life insurance. These dis
sensions have not only injured the fair
Hot 81,
fected but have impaired popular faith
and confidence in the security of life
insurance itself, as provision for
those who in thousands Of cases
would be otherwise helpless against
the affective visitations OF fate
The character of this business is
such that those who manage and di-
rect it are charged with a grave trust
for those who, necessarily, must rely
upon their fidelity. In these circum-
stances they have no right to regard
the places they hold as ornamental,
but rather as positions of work and
duty and watchfulness. Above all
things they have no right to deal with
the interests entrusted to them in such
a way as to subserve or become con-
fused or complicated with their per-
sonal transactions or ventures.
while the hope that | might aid
in improving the plight of the Equii-
able Society has led me to accept the
trusteeship rendered. | cannot. rid
myself of the belief that what has
overtaken this company is liable to
happen to other insurance companies
and fiduciary organizations as long rs
lax ideas of responsibility in places of
trust are tolerated by our people. The
high pressure of speculation. the mad
ness of inordinate business scheming
and the chances taken in new and
uncertain enterprises are constantly
present temptations, too often success
full. in leading managers and directors
away from scrupulous loyalty and
fidelity to the interests of others con-
fined 70 their care.
I'VE can better afford to slacken
our mace than to abandon our old
simple, American standards of homes
~. and we shall be safer if we regain
our old habit of looking at the APP
preparation TO personal uses of prop
crty and interests held i'm trust, in the
same light as other forms of stealing.
yours very truly,
"GROVER CLEVEIAND."