The Cairo bulletin., 1906-05-03
MORTON IS GIVEN
VASTLY GREATER
POWER
BUT NOT ALL THAT He ASKED
FOR IN THE NEW BYLAWS
OF THE EQUITABLE.
LOSS OF new BUSINESS
Is Shown BY Equitable Life But Eek
hblts Annual Saving in Cost of
Management of Nearly
Three Millions.

New York, May 2.-Strenuous oppo
sition to the scheme of Thomas i,
RYAN 10 give extraordinary power to
President Paul Morton, of the Equit
able, developed today when the direc-
tors met to vote on the new bylaws.
This opposition resulted in hedging,
TO a certain extent, President Morton S
financial power.
The quarterly report of the presi
dent. presented at the meeting
showed remarkable losses New bust
ness has fallen off "a per cent; in the
profit and loss account there is a loss
of SO per cent over the same quarter
last year. This is explained by the
statement thar the Equitable is no
longer participating in "syndicates."
The report indicates an annual saw
ing of nearly $3,00,000 in the cost OF
management,
Section IA of the new bylaws was
intended to give the president power
to order payments by the treasurer
without an order from the board
THAT is nothing but the old system
of executive ORDER" said one OF the
directors.
THE president must have power,
was the answer.
But il was this same executive or
der which came so near wrecking all
os u.s." was the protest ut Mccall and
nToCurdv fbair nowarN y
The executive order" by law went
overheard. In its stead a rule was
adopted that the treasurer should pay
only by order of the board and that
no payments in excess of $4,000
should be made without the consent
of the finance committee.
An unusually large executive COM
mittee is provided for. 1t will consist
of the president vice president af4a
13 directors not officers. On the other
hand the finance committee is un-
usually small---the pre- 2ident ana four
directors. The finance committee has
control of all the financial transac-
tions of the society, a power formerly
held by the executive board.
Ryan's Little "Joker"
In this small finance committee
wall street sees "ioker.' With
RYAN men as members. the enormous
assets of the society could be used to
hamper rival financial concerns, even
though they dealt IN nothing but gilt
edged securities.
There is a provision against Syn
dicates," in that all investments and
sales of stock must be made in the
name of the society.
President Morton also put through
his pet theory of examination Of mis-
quarterly statements and the annual
statement by disinterested chartered
accountants.
From May 81, when the new bylaws
go into effect, Vice Presidents Tarbeil
and Wilson are in the power of Presi-
dent Morton. He can remove them at
will. He cannot appoint their success
ors. however. unless the board ap-
proves of their nominations.
President Morton's quarterly report
shows a decrease of new business for
the quarter 10 the amount Of nearly
81 400. 900. The falling off in renewals
was only s34S,000. The total receipts
are over s2.230.000 less than last year.
The most startling difference is in
the profit and loss account which in
1895 was s2S3.S97 and this year s23.-
9S5. The profits which the 'syndicat-
ing" directors allowed to the society
were credited to tbs profit and loss ac.
count This great falling off gives
some idea of the extent to which the
directors profted.
The most encouraging item in the
report from the pslicy holders point OF
view is that when tells CT reduc-
ton in expenses and commissions of
s1.056,450.
The disputed fees Of the attorneys
VINO conducted the Equitable's selin-
vestigation early last year have been
settled BY arbitration. William b.
Hornblower asked for $4,000 and wa
awarded $4,000. William ~ Cohen
claimed $50. 900 and gets $4,000. A.
II. Jol'ne asked for $4,000 and re-
ceives $4,000.
The annual election Of officers will
be held May 80. There is no doubt
about the reelection Of President
Morton. VINO will succeed James Ha-
zen Hyde as first vice president is the
puzzle. The office Of fourth vice presi-
dent. occupied by w. II. Mcintyre,
was abolished.