The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-24

tn Phul NUfton PUtnt'nH Ouf That TVS
NrW Armstrong; Laws Fnathe Mf. Ryan
~ carry Out HIs ruiilr gtedse FOE
Naturalization Smarter ~ ChsnGsa
Nov In Hands Sf Directors. VINO viii
Consider % on VIA, ~ sioct heidSrs
MAJ Act In Iune Expected That Tsny
RIrsrtcrs VIVA were Named az the We.
Quest u s~alleyhuiders win Be Retained.
Thomas y Ryan will within a few DAYS
make good his public pledge to vote hi,
ma jority stock Of the Equitable Life A4sir.
| amos Society for naturalization Prssi'
dent Paul Morton gave out this stat, nslt
yesterday:
we have mailed to'elcl Of the dire o.or,
Of the society n proposed amended charter
Of the Equitable, which provides that twenty
eight directors shall be elected directly
by the policyholders az the annual meet
ing to be held next December. and tn
thereafter the policyholde y Of y stoS
shall always constitute n majority of ia,
board. This amended charter, wnicN
embodies all promises made by Mr.. Ryan
voluntarily at the time lP %purchlsed MS
stock, and repeated by him when 8 W..
ness before the Armstrong committee, WI
come before the board of directors at'tb
regular monthly mseting on May 3. 70;
their consideration.
1T provides that the twenty-eight policy
holder directors shall be elected with ths
same formalities and subject to the same
safeguards as are provided by the new
law for the election Of directors Of strictly
mutual life insurance companies.
"The ~policyholders are already we'll
represented in the Equitable board, as a
majority OF the existing directors are policy
holders elected by OF upon the recon-
mendation Of Mr.. Cleveland and his as
s~ooiates (~trustses Of the Ryan majority
stock after communication with the policy
holders at large.
II should add that the trustees, who vote
a ma jority of the stock of the society, and
Mr.. Ryan, the owner Of the stock, are
IitdTlliy ldNol vi BiNtiS ~ pShSy
the right to elect a majority Of the directors;
and that the proposed amended charter
comes to us with the approval of Mr.. Clevs-
land and his assurance that as soon as the
opportunity is given Mr.. Ryan's stock viii
be voted for its adoption.
I'VE are advised by counsel that the in
junction order now in force will have to DO
modified before formal action can be taken
upon this charter. and we have instructed
counsel to apply to the court at once for the
necessary modification Of the order"
, Tn. injunction referred TO by Mr.. Morton
is that obtained by Franklin B. Lord, .
minority stakeholder, restraining the sooi-
ETY. from carrying into effect the provisions
of an amended charter which was ado pied
about a year ago as the result Of James W.
A~lexander's efforts to mutualize the Equi-
table.
That charter provided for the same pro-
portion of directors-twenty -eight-rep-
resenting the polioyholders and twenty-fo four
the stock. Such an apportionment of the
board was enjoined and for that reason it
will be necessary TO apply to the court to
have the order modified. The present
,uhhelldihtut Vi thc Cud 10 iidho poeolblO
through the enactment Of an Armstrong
committee bill amending Section So Of the
insurance law.
AS ihtimated in President Morton's
statement, the Equitable. like the Mutual
and New York Life, in the event of the new
charter being put through, will have to
file with the State Superintendent Of In
surance a complete list of it's poiicyholders.
Tho oIonkso, - Tho nam nlorto, .V, A.
also that thirteen members Of the present
board, besides those who 90 out regularly,
will retire next December, when the policy
holders will have an opportunity to elect
their twenty-eight members by a direct
vote. 1t is certain, though, that most Of
the retiring directors will be renominated,
as they were selected by the trustees Of
the Ryan stock after the opinions Of the
policyholders had been obtained.
The following letter written by Grover
Cleveland, chairman of the trustees of the
Ryan majority stock, TO President Morton.
under date Of May %, was made public:
DEAR SIR: j deem it proper, on behalf Of
the trustees representing a majority of the
stock OF the Equitable Life Assurance Society,
that ] should bring before you and your direc-
tors at this time the subject Of so amending
the society's charter that a majority of the
directors may. under the laws lately enacted.
be elected by the polioyholders.
The trust agreement under which Judge
o'Brien, Mr.. Westinghouse avd ] are acting.
after reciting the adoption BY the directors Of
the society Of a plan for such election.b by policy
holders, and the prevention of its consun-
nation by litigation. and the purpose Of the
trust agreement TO accomplish. so far as
practicable. the purposes Of such plan. author
lied the trustees of the majority of the stock
of the society in respect of said stock to take
in their discretion. by vote thereon or other
wise. any action necessary or proper 20
effect the contamination Of said plan for the
capitalization OF the society"
The trustees have thus far acted upon
the theory that until a change On the Law
permitted an amendment Of the charter