The evening world., 1905-12-08
WITH FINANCIAL EN-.
A. ] CAN IMAGINE

! STAND YOU WE'RE NOT IN
| FLUBNCED by ANY SUCH CON-
sIDERATIoNsc A, ! WAS NOT
., Have you, since The purchase, boI.
lAfe? A. Not a dollar.
q. or sold any securities to the Edui-
| table Life? A. No, sir,
a, Bat IL u not n fact. Mr.. Ryan,
that In deciding 90 purchase the
mind tie andcsIFnbiiity Of its faii-
would be Influenced by. other mo-
Hyess A. think that that had an
*; no PIf if BiLphIS ,gy yogy
NIGHT nIl ERATiNg IN bARGE
MIGHT DE DISPOSED no CONSULT
EGNCLUsIyELl THEIR nIiN LNTlHss ,i, 4
EEennITCA,nLE ,TREAsuRE HotsE'
@ When did You give Instructions to
counsel 10 prepare trust arrange
ment or trust deed-how soon after
YOU hod up the matter OF acquiring
the stock? A. Within a few hours.
Fixing the Trust Term.
O. Now, when you formulated the
trust Agreement you provided for a
trust term o. five years, or as Is stated
IN paragraph 9 of the agreement, which
thorlzed by Section 20 OF the General
Corporation Law OF the state OF New
York Did you fix upon the term of
hve years because YOU we're ad-ased
that you could not legally cr@ate .
trust deed for a longer period? A. Yes,
but 1 agreed-1 think agreed in some
paper that | would continue as long as
lived. from each period Of fivs years,
Always 1under the Law"
q. You wanted to bind yourself as
far as you could? A. Under me law.
Q. You regarded IL as improper that
any one else that would remain In the
ppsTty SnDeRs6e sn1sTR6Se 81 hSs ;Ss .SS sSye any
YOU did not wish yourself to retain
any such--is that a tact? A. That Is |
ihe |, exact fact better than I could state |
q. DO you meet with the trustees, OF |
40 they advise with you. A. / have |
met Mr. Cleveland; met him the other |
day when he was In town.
u. DO they advise with you as to /
the persons that would be satis- !
fnctory 20 yOuf A. No, sir.
g. To 80 upon the boardg A. No,
o. Have you given any reoommenda- |
tbons ae TO the persons who should be (
selected2 A. No, sir,
q. They are TO select certain persons
IS representing the stock interestsg A.
Q. TO the extent OF twenty-four out
Of the total nrrnber7A Yes,
Made No Recommendations.
Q. The minority OF twenty,tour are 10
- selected, Mr. Cravath points out, in
he sole discretion OF the trustees, Have
you made, IN fact, any recommenda-
tons as to the persons who chould be
selected as the minority directosY A.
Q. Or within the quota Of twenty
'our1 A. No, SIR.
trustees are obliged 10 seiect those who
ire nominated by the policy -hoiders ac-
,ording 10 the majority OF votes or that
hey may choose among those that are
nominated by the policy-holders? A.
Ny understanding Is that they were not
,bliged to do Il.
Mr.. Ryan admitted that the trustees
ouid reject men selected by the policy
Q. You regard that as a safer method
y selecting directors than 10 allow the I
election TO be controlled by the chance
'otes OF majority OF pollcy-holders at
given time? A. do.
O. Have you any interest In this stock
ave as subject to this trust deedl A.
nave not
Q Can you vote upon this stock-can
on vote upon the Equitable stockI A.
should say not.
Q. You have not the title to III A.
MAT Is my understanding,
Check but No Title. Ia
Q. Are the trustees IN receipt Of Com Il
A. (addre ssing Mr.. Cravath)
suppose You can answer that, Mr..
lravath. The agreement was filed with
he company.
Q, Now, the soheme OF this agreement
s that the stock shah be put in trust
or the time stated, and that the trus-
ees shall exercise the voting power and
nat you shall be entitled TO the divi-
lends. Now as a matter Of fact, what
he execution Of these papers? Al
lave done very little.
Q. Have you done anythingS A.
hould say nothing.
Q. want 10 know whether this agree
nent is carried out In actual practice,
whether the fact corresponds 10 the
,orml A. Yes, sir
=. Then Mr. Cleveland, Judge O'Brien
md Mr., Westinghouse, during the term
o vote this stockS A. Absolutely.
q. And as 10 the holders OF The legal
tile OF the majority OF the stock, they
ave the sole right 10 elect the Board
y Dlreetors2 A. Absolutely.
A Public Service.
q. ! wish you would explain lit
Wiling TO pay $500 COO Tor stock which
'ou put into the hands OF trustees
gith fun voting power, where You can
,xercise no control over Il whatever,
md Fhere you get at the utmost, Z
scr ceat annually dividends upon the
oar yalue7 A Well, did IT. TO ac-
hat. in my somewhat lengthy answer
/ referred 20,
O. In other words II was con
for peace and prosperity A.
! thought l was doing a great public
service,
hat you were aotuated simply ~ the
motive of rendering public serviceG A.
And TO prevent what | considered--vlhat
feared would be the most tremendous
Danic that this country has ever seen, II II
me Equitable Life Assurance Society
lad gone into the hands Of a receiver
o. Have you ever reflected upon the
iosT loST'iTl1 money S Sacki A, Never.
.. BY the terms Of the trust deed the
.rustees are empowered TO select
wonty-eight out Of the fifty-two d.
.ectors IN accordance with the exDress
sishes OF the policy-holders. Docs your
TO execute that deed indl-
ate that n legislation should be had
,ou would be willing 60 see the provis-
on made for the election by the policy
lolders according 10 law OF the major
tv OF the Board? A. am.
o. You are willing 70 90 on record
lbsolutely 70 that eifect7 a. Yes, sir.
O. Do the trustees receive any COM
A. 50 far, no, SIR.
@. Has any provision been made for h
helr cornpensationi A. Not up e, ne