New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-09

inquired as to Mr.. Ryans motives III iiioA4i+e
the purchase.
Mr.. Ryan's explanation and the further ex-
animation on this point were as follows
bsa very large interests that were sure to be
affected seriously by any disturbance in the 81 sny
cial situation confidence in New OK o,rt1iai
certainty of receivership OF the Equitape 7,seeT
disaster impending unless the factional oillg 6
enees in the company among the directors ana ana
the management Of the copany could n fhe fright
fu losses that would occur from the violent icN
holders but TO the financial community at large,
myself as well, thought that some one OuS"
"a The ACQUISITION Of the stoek2 A. Yes; IN
some way to stop the %t the large
companies did not seem TO he IN tnat P had any
connection with The three big insurance e 70
NV IS theorT about success m is that
man is not Judged so much ny WaSS -. R thing worth
Nv first idea was to get together NUMBER 2 o1 NJ
Of The hands in which It going to 0e5l and
and give it a clean management, ecol , for the
efTcient and restore It TO its prosperity ~"
s he o. amounts that could be obtained from dis
Interested people-people VINO n au 70 do It
fnyself And in buying the stock 9eter,, rose
never to exercise the voting power I0 or for any
other purpose ard that would select trus1e s15
Of Of, Such ssh and aocordng my
counsel 70 raT co deeq be or made under the present
law M mans and purposes were set forth IN I'M &c
letters ten about e ts fhe tms and
two think have been naGe pp unI' turned them
over 10 You some time early in the session Inc
third letter is a letter to MI Morton INC PFC
dent OF the company.
LETTER TO MR.. MORTON
The letter TO Paul Morton was then read, The
main point of interest in it vas the assertion
that Mr. RYAN had not purchased his stock for
resale and would not resell it, save in case MOT
ton should decide it was for the interests OF the
policyholders to retire il, when he could acquire
II at what Mr.. Ryan paid for it and per cent
interest. less dividends. Pursuing his question:
ing Mr. Hughes brought out the fact that Tue
whole purchase was made by Mr. Ryan without
giving any interest to any person or institution
that he had not received any portion OF the
price paid back from Hyde or anyone else ana
that he had bought on his own financial respon-
sfblity TO hold subject TO his trust deed.
Mr. RYAN testified that the purchase had been
suggested to him. but he could not recall by
whom but that he had taken the matter up
only with his counsel. Elihu Root and Paul u
Cravath He further declared that while ne hau
heard rumors that other interests were trying TO
purchase the stock these did not influence him
in his decision TO purchase He also affirmed
that he had been policyholder in the Equitable
since 1898 Pressing home for the reasons TOT
the purchase Mr.. Hughes continued:
1o ne you confToI of the stock Should be bought
uye D. men interested in financial enterprises VINO
axes to grind? A.-well, think it might have been
o.@And why do you say it might have been con on
sidered unwise? A--Because looked upon inc
t ira for Rg sOOo OF 's
QYou We're fully aPpTecave e OF ine f6 further
their own interests acquired a control of that
stock AL 4 can 3a m fnsiitt dna' II
omYou understand Of course, that the control
la-1 which such
stitution the Equitable has might be decided 5
advantage in connection with hnanclai enterprises
QIn making your purchase y6 y sell e G0 com on
siderations? Al was not.
Hy 9 yGn 9Gf the Re %Gt
Q.LOr. bought. any security from the Equitable
Q.-or sold any security to the Equitable Life?
c,EBut is it not fact Mr. Ryan. that in decid-
ing TO purchase the stock yourself you did have
hands Of those who would be Influenced by other
motives? Al think that that had an influence
90 put it badly you would not desire those
actions. and who might be disposed to consult ex-
eusvey their own 70 axs mot Of 'e
Q.-when did you give instructions to counsel
soon after YOU had taken up the matter of acquir-
ing the stock? A--withn Few hours
TERMS OF THE TRUST DEED.
Mr. Hughes called attention to the fact that
there was some delay in executing the trust deed
Mr. Ryan explained that this due to the fact
that Mr.. Root and Mr. Cravath were busy at the
tine. He then testified that the i've year term Of
the trust deed was fixed because he was advised
that this was the legal extent of such docu-
rnent but that in another paper he had agreed to
continue the trust as long as he lived. Whether
this agreement was obligatory upon him or not,
Mr. Ryan did not know. II told Mr.. Root to do
the best he could he explained, agreeing that he
wanted Ito bind myself far as could under
the law The examination continued
o-And Won regard it as inadvsable that any
else who prominent in financial enterprises
should have an uncontrolled ownership of the
uncontrolled ownership of it, is that 1t? A
That is the exact fact; better than could state
II myself
oEHave YOU since the execution of this trust
deed. given any suggestions as to the persons who
should be elected directors Al have not.
That matter has been in the sole control OF the
o-Do they advise with you to the persons
who would he satisfactory to you to go upon me
oE4ave YOU given any recommendations as TO
the persons who should be selected. A.-No sir.
Q.-They are to select certain persons as repre-
sentine the stock interests? A:-1es sir
Q.-Is your understanding that the trustees are
Obliged 20 elect those who are nominated ny the
policyholders according TO majority Vote or tnai
they n az choose among those who are nomina ted
by the policy holders? Any understanding is that
they are not obliged to do II.
o-And why was that scheme developed: in
words why did you leave them free to choose
without reference 10 the actual jority wishes
them? A-Weu. there are great many policy
holders Mr.. Hughes; there are O0000 Of them. and
hoard h.- getting recommended tons. proxies, and
you might get unfit people on the board. Ny idea