The Cairo bulletin., 1906-06-11
EQUITABLE KINGS
FIGHT PLAN OF
CLEVELAND
WILL CONTEST NATURALIZATION
ON GROUND THAT LAW is
UNCONSTITUTIONAL.
BEGINNING or BATTLE
In Courts Wh' Be lnaugurated Today
Hyde, Angry at Ryan, May
Take a Hand In the Great
Lcgat Battle.

New York. June 10.-Tae plan work
ed ont by Grover Cleveland, Paul Nor.
ton ana Thomas r RYAN for the mu
tuaization Of the Equitable Life AS,
urance society is 10 be cnotested II
the courts by several Of the minority
| stockholders Of the company.
/ The CONTEXT will be based upon the
constitutionality of section ffty-two Of
the insurance laws as revised by the
| Armstrong Legislative commit e.
| This sect on was specially amended
to permit Of te mutulization of the
| Equitable. 1t provides that a majority
of the stockholders may amend the
charter of a company along Ines
which confer yo ing right upon the
Ipohcyholdere
II was declared yesterday by coHa-
sci Of one OF the important minority
stockholders Of The Equ table tnat the
Legislature had no right to give au-
thority o majority stockholders 10 dc
pfiyc minority stockholders Of the.3
vested property lights He declared
that he had no dop1t that the courts
would hold section fifty 40 uncolsti
tutional on the ground that it peimit.
ted conliscat on of property
Beginning of Legal Battle.
On Monday next the Equitable Life
through its attorney, Paul D. Crayata,
win probably apply to tie appellate
division of the supreme court for a
modification Of the injunction isaael
last spring in the Franklin b. Lord
suit. This application will open the
long legal. battle which The ninority
stockholders intend 10 wage aga.n7a
the Cleveland naturalization program.
The Equitable's application win be
based upon sectiol fifty-two of the
Insurance law This will at once bring
into question the con ttutionality of
hat statute. Morgan JOBrien. pre-
iding Justice Of the appellate Division
will take no part whatever in The
court proceeding, as ne Is one of the
trustees OF the Ryan tock in the
Equitable and with Mr. Cleveland
worked out the plan of muiualzali II
which is so obnoxious to the m norty
stockholders.
In the original Lord suit number
Of minority stockholders intetyenel as
co-paintilfs. One OF taese was Charlie
w. Morse, wwho owns twenty ehpras
Of Equitable Life stock The executor.
Of the Lambert estate also interviewed
as did James Hazen Hyde. at that time
owner of the majority stock Mr.
Hyde is still the owner OF about sixty
lares. Lat spring he fought the
naturalization of the sociey. taking
iies with Mr. Lord throughout the
long legal battle
Hyde Doesn't Love ryan.
1t is known that Mr. Hyde has no
love for Thomas F. Ryan. who paid
nim 50 100000 for 502 shares Of Rquit
able stock. Mr. Hyde according to his
friends, claims that MIR Ryan made
number of promises to him al the time
of the sale and has failed to live up
20 any Of them II is rumorej that one
OF the promises was that Mr. Hyde
hould retain his position as first vice
president of the society, also his
position in the direc crates of num-
ber of corporations in which the 1quit-
able ha. large ctock-holding interests. |
Mr. Hyde was dropped from tdo vice
presidency Of the company, and ince /
then h has been dropped a a dira-to- /
by many corporations in which the
Equitable has an influence. Mr.. Hyde |
e now in Paris and nobody yesterday |
would speak for him
Coun-e for one of the minority |
stockholders said fha; If section 50 is /
held to be constitutional by the court
the whole pr0bleia OF municipal /
ownership would be eolved If it is /
right. he said, for the policy hold r.
of a stock company TO thrust as de the !
stockhoders ana take the manag p |
men Of The company. into the.- own /
hands. it would be equally prope- for
the board of aldermen TO elect the 4
directors Of IN Consoiidated Gas c1m- I
pany and proceed to manage tho af I
fairs Of thar corporation without re-
gard for the supposed We TED rights Of
its ockhollers.
The Equitable life issael The fo'-
lowing star sment YESTERDAY:
The pr PISSED a-.eaGci chsr.e- Of
the Equitable does not contemplate
the retirement from the toafd CT aey
OF tie policyhol5 rs who have been
elected % the board by or on fte \
on Of Mt Cleveland,
Judge OF icn and MT 'Vestiaghouse. /
On the con gary. it IS uniertood that
Mr. Ci3velsud's purpoee in recon
mcnainE thar the ane83ed cAa-fer
should provide that the thirteen direc- /
'o ships filed the fast animal meet
ng should expire with the present