Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-15
END OF EQUITABLE WAR
COMPROMISE EFFECTED BY THE
SPECIAL COMMITTEE.
Policy Holders Obtain Right to Elect
Majority of Directors-Hyde
Gives UP Control.

After a session which lasted three hours !
The special committee of the board of di- |
rectors of the Equitable Life. appointed to |
find plan for mutualizing the company, |
gave out the following statement in New |
York yesterday:
NEW YORK. March IA. 1905
1.-THE special committee of the board of !
directors of the Equitable Life Assurance
Society consisting of James w. Alexander,
Cornelius N Bliss, T. Dewitt Cuyler,
Chauncey NJ Depew. James II. Hyde. VAL
entine P. Snyder and Gage e. Tarbell
unanimously
Resolved. at meeting held today to
recommend to the board of directors that
the charter of the society be forthwith
amended so as to confer upon the policy
holders the right to elect majority of the
board of directors; namely, twenty Eight
out of fifty-two.
"Sueh action was taken with the express
consent and approval of Mr.. Hyde as the
representative of the majority of the cap
ital stock of the society.
"a meeting of the board of directors mas
been called for next Tuesday March II.
1905. when the committee will submit to the
board the amended charter as prepared by
counsel
(Signed)
JAMES w. ALEXANDER, President.
JAMES II. HYDE, Vice President.
GAGE E. TARBELL, Second Vice Pres
Announcement a Surprise.
The announcement came as a surprise to
those who have followed the various moves
in the fight for supremacy between the
factions headed respectively by James W.
Alexander and James H. Hyde. While
neither Mr. Hyde nor Mr. Alexander have
consented to make any statement of their
positions and the proceedings at the sew
of 10 been
carefully kept from the public so lar as
1t was in the power of the committee mem
bers to do SO, these close to both the
president and the vice president of the
company have declared there was no pos
s.bility of the committee agreeing.
When the news thai the committee nad
met on common ground reached the noteis,
where it is the custom of hnanclers 10
gather al night, it was seized upon ana
formed the chief topic Of discussion. Opin-
ions were divided tC whether the reso-
luton adopted by the committee was
Hyde or an Alexander victory.
No Effect for Four Years
At Mr.. Hyde's home last evening he de-
clined to supplement the statement issued
by the committee by an interview which
might explain how the plan recommended
was expected to work. Mr. Alexander was
also silent.
%. 1t was learned from an authoritative
source that there will be no change in the
personnel of the board of directors now
constituted, until the next annual meeting
of the board when thirteen new directors
will be chosen. OF these, seven viii repre- |
sent the policy holders, and six will be |
elected by the stockholders. At the next |
annual election thirteen more new directors
will be named to succeed thirteen of the !
old board, and they will be chosen as be- !
fore, seven policy holders directors and
six Hyde directors. Thus it will take four |
years to place the board of directors the |
i,a els Of 10 holders
and twenty-four for Mr.. Hyde.
Stock Not to Be Retired. |
1t is understood that action will be
taken to retire the stock held by Mr.. Hyde.
He will continue to hold the $40 shares.
which, under present conditions, enables
him to control the vote in the board, and
consequently gives him control of the COM
pany's enormous assets.
1t Is this fact that led many last night
to declare that the plan agreed on by the
committee was a distinct victory for Mr..
Hyde. They argued that, besides retaining |
his stock, the vice president was in a po-
sition by reason of the method adopted to
bring bout the change in the organization
OF the board of directors, to eventually per-
petuate his power.
It was pointed out that it was only
necessary for Mr.. Hyde TO obtain the al
Iegiance of three of the directors elected
nominaHy, by the policy holders, TO again
control the board. 1t was suggested that
he has and will still have for
nearly four years, the machinery OF the
agency department under his hands it will
be no difficult matter for him to gain the
extra three directors.
Hyde's Position.
Even after the reorganization of the
board was effected, it was argued, Mr.
Hyde would still retain. nominally, forty
five per cent of the members of the board,
which is as good as owning forty-five per
cent of the stock of the company. Most
corpora tons are controlled by twenty per
cent of the stock and it said there
was reason why Mr.. Hyde should not
maintain his position actual ruler of
the company's affairs.
Mr.. Alexander's friends said. the
other hand, that the plan suggested by the
committee was a victory for the company's
president He had they insisted, COM
pletely routed the Hyde faction and forced
them to concede that which would event
ually place Mr. Hyde In the minority.
This was based on the fact that when the
officers of the company signed the petition
asking for the retirement of the vice presi-
dent they arraigued themselves on the side
of Mr.. Alexander. and, it was argued.
nothing In the conduct of these officials
since the fight for supremacy began has
indicated that they have changed their
minds in regard to any of the sentiments
expressed in their petition.
Hyde's Manipulation.
This attitude toward Mr.. Hyde would, it
was said. stand in the way of his manlpu-
latou OF the machinery of the companys
organization for the purpose of winning
over the necessary policy holders directors.
One of Mr. Hydes friends declared that
the Alexander faction, as represented by
the Crimmins committee, had become con-
WINGED that legislation would be con-
stitutiouaI which had for its object the
taking away from Mr. Hyde the power
which was vested in him by reason of his
ownership of a majority OF the stock of
the company.
One of those who have maintained a neu-
trail position in the fight between the Alex
ander and Hyde factions said that the reso-
luton adopted by the committee a
happy solution of the difficulty.