Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-06-13
Is One Outcome Of Recent
Equitable Squabb|e.
Consolidation Of Trust Co.'S,
with $I6s,OO0,O00 Deposits.
piaa Also Will Eliminate Control Of Subsid.
lay Companies BY Equitable.

New York, June 1.-THE organization
of the largest trust company in the
United States and one of the largest
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 Equitable
Life Assurance Society. held by James
H. Hyde.
Mr.. Ryan's plan was reported, today.
to be to consolidate the Equitable
Trust Co, the Mercantile Trust Co,
and the Morton Trust Co.. all Of this
city. with the latter In control.
1t Is expected that this would result
IN creating financial institution with
deposits second only to those of tn"
National City Bank Of this city. which
has deposits of $1S5,OD,eOO.
The deposits of the proposed CONSOLE
dated trust company would amount to
$169, 900. 900; the capital stock to $1,000
900 and the surplus to So, 100000.
Mr.. Ryan's plan was reported, today.
the control OF subsidiary companies by
the Equitable Life Assurance Society.
A letter from Former President
Cleveland to Thomas F. Ryan, con-
corning the trusteeship of the stock Of
the Equitable was made public, today.
The letter, announcing the writer's
conviction that it is his duty to accept
the trusteeship. says in part:
II assume this duty upon the express
condition that so far as the trustees
are to be vested with discretion in Sc
lection of directors, they are to be abb
solutcly free and undisturbed in the ex-
ercise Of their judgment; and that. SO
far as they are to act formally in vot-
ing for the directors. conceded to pol
icyhClders. a fair and undoubted ex-
preston of policyholding choice will be
forthcoming.
1.-The character of this BUSINESS lin
surance) is such that those who man
age and direct II are charged with "A
grave trust for those who. necessarily
must rely upon their fidelity. In these
circumstances they have no right to re-
gard the places they hold as ornament
al, 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
n way as to subserve or come confused
or complicated with their personal
transact ions or ventures.
THE high pressure of speculation
the madness of inordinate business
scheming, and the chances taken In
new and uncertain enterprises, are con-
stantly present temptations. too often
successful in leading managers and d.
rectOrs away from scrupulOus loyalty
and fidelity to the interests of Others
Confided to their charge.
1--WE can better afford to slacken our
pace than TO abandon our old simple,
American standards of honesty: and
we shall be safer if we regain our old
habit of looking at the appropriation to
personal uses of property and interests
held in trust, i'm the same light as 9TH
err forms of stealing.
yours very truly,
"GROVER CLEVELAND"
Nine policyholders, today, filed suits
Of Intervention In the United States cir
cult court asking to be made party
plaintiffs with j. Wilcox Browne of
Baltimore. who recently filed a suit in
the federal courts asking that a receiv-
or be appointed for the surplus of the
Equitable Life Assurance Society.
The policyholders intervening are res
idents OF Beechwood, Pa. and Wash
ington. d. G.