New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1905-06-17
A HUGE COMBINE
PURCHASE OF EQUITABLE MEANS
A MONSTER TRUST.
I. F. RYAN AT HEAD OF SCHEME
Stated That Combination Was Part Of
His Plan in Negotiating Pur-
chase of Equitable.

| New York, June 1.-THE organiza-
ton of the largest trust company in
the United States and one OF the larg-
est financial institutions of the world
was said yesterday to be part Of the
plan of Thomas F. Ryan in negotiating
the stock of the Equitable Life Assur-
ance Society held by James H. Hyde.
MIR. Ryans plan was reported yester-
day to consolidate the Equitable Trust
Company, the Mercantile Company and
the Morton Trust Company, all of this
city, with the last named in control.
1t Is expected that this will result in
financial institution with deposits
second only to those of the National
City Bank of this city, which has de-
posits OF S185,000,00O. The deposits
of the proposed consolidated trust
company would amount to s169 900, 900
the capital stock 100000 and the
surplus to $22,500,OOO.
Mr.. Ryan's plan was reported yes
terday to contemplate also the elm
nation of the control of subsidiary
companies by the Equitable Life AS
surance Society.
Chairman Morton has prepared
circular letter to the society's gen.
eral agents informing them Officially Of
his election with plenary powers. He
quotes from the letter of Mr.. Ryan
dealing with the trusteeship. and in
Inmates that the plans OF retrenchment,
while of sweeping character, will not
go SO far as to restrict expenditures
calculated to add to the society's bust
ness.
Chairman Morton in his circular
says:
Tho Equitable Society has been
severely tested and the ordeal has re.
vealed to the world its strength and
prosperity with an emphasis which
could never have been shown as sig
nificantly by any ordinary method Of
demonstration"
Former President Cleveland has
written letter to Thomas F. Ryan
concerning the trusteeship OF the
stock OF the Equitable which he ac-
cepts. The letter was made public
yesterday.
In it Mr.. Cleveland says he assumes
the duty OF a trustee upon the ex-
press condition that so far as the
trustees are to be vested with discre-
ticn in the selection of directors they
are to be absolutely free and undis-
turbed IN the exercise of their judg.
ment."
while the hope that might aid
in improving the plight of the Equita-
bic Society,"" he says, has led me
to accept the trusteeship you tender.
l can not rid myself OF the belief
that what has overtaken this company
Is liable to happen to ether insurance
companies and fiduciary organizations
as long as laxities and responsibility
In places of trust are tolerated by
our people.
1.-THE high pressure speculation, the
madness Of inordlnate business trans
actions and the chances takol in new
and uncertain enterprises are con-
stantly present contemplation too often
successful In leading managers and
directors away from scrupulous loyal
ty and fidelity to the interests of 9th.
ers confided to their care.
I'VE 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 appro-
priation to personal uses of property
and interests held in trust in the
same light as other forms of steal
ing
L. IL