The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-16
The EQUITABLE TRUST DEED.
POLICY HOLDERS UNHAFPERED
IN NAMING DIRECTORS.
Tn send Their Nominations Direct to
the Trustees-Ryan Announces That
lie Alone Bought the stock and Paid
$4,000, 900 for the SO2 shares.

me three trustees of the majority stock
n the Equita be, ex-President Grover
cleveland, Supreme Court Justice Morgan
] O'Brien and George Westinghouse, made
known to them. the proper officials, that
he and he alone Is the sole owner OF the 5o2
share. of stock purchased from James
Hazen HYDE and that he paid 81, 500, 900 for
the stock
Mr.. Ryan has said all along since Friday
that he was the absolute owner Of the stock.
that there was no divided responsibility,
moreover that there would be no divided
responsibility and that the trustees were
alone empowered to accomplish the work
OF rehabilitation Of the society
From all States and nations where the
EQUITABLE Life Assurance Society Is doing
business have come to Mr.. Ryan kilograms
and cables and letters commanding him for
stepping into the breach &C the most crucial
period in the Equitable'e career and by his
personal purchase OF a majority OF the stock
and the selection OF the three trustees steer
ing the Equitable from the rocks OF demorali-
cation to a conservative and busnesslike
harbor. Mr.. Ryan's letter to the trustees
is as follows:
MIR. Ryan's Letter.
June IS, 1906
Hon. Grorer Cleveland Hon. Morgan j.
OBrien George Westineh ouse, Esq H., .
DEAR S1Rs: In order that every possible
basis for mystery may he eliminated,
am anxious that you should be fully APP
my purchase Of majority (502 shares)
of the capital stock of the Equitable Life
Assurance Society: l am therefore writ
Ing this letter to place before you the only
facts regarding the transaction which nave
not been made public.
.1) am the sole owner OF the SOP
shares Of the stock Of the Equitable society
which purchased from Mr. Hyde and no
or has the right to contribute, single
dollar toward the purchase of the stock;
The polcyholders with whom conferred
in ma king the purchase have had no con-
nectlon with the management OF the Equl-
table society, and their connection with the
transaction was entirely advisory. l am
under no obligation to any living man with
respect to my action as the owner OF this
stock.
Hyde is 81. 500 900.
you are at liberty to make this letter
pubic if you so desire. Very truly yours.
The deed of trust under which the new
trustees will discharge their duties was
made pub ic at the same time that the Ryan
letter was given out. This was after a
meeting of the three trustees at the Hotel
buckingham; when they conferred p path
b. Cravath The conference lasted for
several hours in the morning and was
taken UP again at $50 in the afternoon
II was almost 10 o'clock before the deed
Of trust was completed and executed. .,
promised by Mr.. Ryan in his statement
last week, and the opinion was expressed
last night among persons Interested IN tht
Equitable situation that the new plan wouc
result in better and safer form OF mutual.
cation than would have existed under the
terms Of the amended charter.
The deed provides for the trusteeinR
Of the stock in perpetuity, although the
directors are granted the power eIsc o, ter ter
They are to elect the twenty-eight directors
as designated by the policyholders and
the other twenty-four at their -mcon-
troed discretion.
The deed provides that the poficyholdelr.s
shall send their choice for directors di-
rec.ly to the trustees. thus doing away
with the danger that the elections would
be dictated by the agents or officers OF the
society through proxy committee. Inc
deed in full follows;
The Deed OF Trust.
AN agreement made in the city Of New
York, in the State Of New York, this 18th
day Of June one thousand nine hun
dred and five. between Thomas +.
Ryan, of the first part. and Grover Cleve-
d.
inghouse hereinafter called the Trustees y
of the second part
Whereas the Equitable Life Assurance
Society Of the United States hereinafter
called the society,", is corporation OF
the State Of New York, having full paid
capital stock of one thousand q ,o0o) shares
Of the par value of one hundred dollars
(slCO, each, of which five hundred and two
. l5Ooy shares are held by the party of the
first part; and
Wbara,. tho cnrpprata ppWers IF the
society are vested by its charter in borao
Of directors consisting Of fifty-two (52
persons divided into four ~ classes OF
thirteen d3) directors each, each class
serving for a term of four az years, &c
that thirteen n3, directors are elected al
each annual election of the society; and
Whereas the directors of the society
have adopted plan for the naturalization
Of the society by amending its charter
that of the fftytwo 1927 directors OF the
society twenty-eight t2s) should be elected
by the pocyholders and twenty-four ga
by the stockholders; and
Whereas the consumTTation OF sale
plan of naturalization and formal actor
thereon by the Superintendent OF Insurance
of the State of New York have hitherto
been prevented by litigation. and In ordel
10 effect, so far as practicable and with
out further delay, the result sought to bt
attained by such plan of naturalization
the party Of the first part has entered into
this agreement with the trustees:
NOW. THIS AGREEMENT wITNEssErH Al
FOLLOWS
"Frst-The party Of the first part hereby
transfers to the trustees said five hundred
and two (5O?J shares of the capital stool
of the society for the purpose of vestinf
In the trustees the right to vote Thereon
for the term and upon the terms and con
ditions stated in this agreement. The
existing certificates for said stock shall
be surrendered and Cancelled, and certfi
Gates therefor shall be issued to the trustees
in which certificates it shall appear tina
the same are issued pursuant to this agree
ment and that fact shall also be noted IL
the entry Of the trustees as owners OF sucf
stock in the proper books Of the society.
Second.-The trustees are exclusively
authorized to exercise the voting power
on the stock held under this agreemen
for the election of directors OF the society
and shall, at every annual election of di
rectors Of the society, so vote on said stock
that out of every thirteen Q3) persons
for whom such vote shall be cast. sever
ca shall be policyholders of the society
selected in accordance with the wishes
Of the policyholders of the society, ex
pressed as hereinafter provided, and the
remaining six (6) directors shall be selected
by the trustees in their uncontrolled dis
oretion, to the end that, of the entire fifty