New-York tribune., 1906-05-02
MORTON HOLDS REINS.
EQUITABLE BYLAWS PISS
Modified after Long Debate, Thea
GiUe President Great Poscer.


hands OF the president and few Of the directors
py the new bylaws adopted at the monthly
meeting OF the board OF directors yesterday
a1teTnoon Opposition by members OF the board
20 some Of the broad powers vested in the presi-
oent resulted in their being modified While It
was not an acrimonious meeting there was con-
| siderable argument.
one OF the most radical changes. some said
last night, would give the opportunity to the
ksyan interests to manage the funds in such a
way that they could aid or injure other large
financial interests. This was the placing in the
hands OF the finance committee Of all the invest
tnents OF the society, including loans, invest
laents on bond and mortgage and the purchase
and sale OF securities This committee is to be
made up Of the president, the vice president
N"ho shall have no vote except In the absence
OF the president) and four directors not officers
OF the society. Three members OF this commit
zee snail constitute a quorum
OH0ef the old system all the investments have
DeeI MADE ny the executive committee. which Is
d large body In the future this power may be
exercised by three men. There is a check to the
llilance committee under the new system, in
''ioe Il must report its investments sales Of
SECURITIES etc. to the next meeting Of the execu-
i've committee. The finance committee also re-
celVes large powers in the bylaw which says
tnat the funds shall be deposited in the name Of
lne society in such repositories as that COM
nlittee shall indicate
One section Of the bvl.1,.. o,4..4os =. .-.--,t..,
that the treasurer should make special expendi-
lures when authorized bv the hoard mr. nv the
president It was argued that such power had
caused most Of the scandals in the New York
ana MUTUAL companies. An amendment was
onered that no payment should be made or no
liability contracted in excess Of $4,000 without
the approval OF the board OF directors. An
other amendment gave the finance committee
the power to approve such payment or contrac-
ton OF liability well as the full board and the
bylaw passed in that form.
Another fight was against the bylaw which
directed that the second and third yice-presi-
dents should be appointed by the president
They wanted to change it that the president
should nominate for these Offices men to be
elected by the board. The bylaw as passed pro-
vides that men for these Offices shall be ap-
pointed by the president subject to the ap-
provaI Of the board. The term OF such officers is
indefinite. and they may be removed or sus-
pended by the president at his discretion They
are to perform such duties as may be assigned
by the president This not only curtails the
power Of Gage E. Tarben and George T. Wilson
second and third vice-presidents, respectively
but places them directly in the power Of Presi-
dent Morton The latter said last night:
We are not looking for men take the
places Of Mr. Tarbell and Mr. Wilson"
In the future the president and first vice-presi-
dent are TO be the only elective officers. The
president is to have plenary power over all
officers The executive committee is to consist
OF the president, vice-president and thirteen di-
rectors not officers OF the society. This COM
mittee shall be vested with the powers Of the
board when the latter is not in session The
president is to be chairman Of this as we'll as
Of the finance committee. There are to be two
other standing committees-on insurance and on
agencies.
Other provisions of the new bylaws which
viii prevent the repetition OF former abuses are
that all investments shall be made in the name
of the society and all salaries in excess of $1,000
shall be fixed by the board. One bylaw, a para
phrase Of one Of the Armstrong laws, forbids
any director officer employe Of the society
from receiving any money or valuable thing"
through any Of the financial transactions of the
company IT is also provided that any risk in
excess Of 100000 on a single policy shall be
reinsured. The bylaws go into effect on
May 81
The following report OF the society for the
first quarter Of this year, with a comparison
with the same period in 1905. was accepted:
RECEIPTS
Premiums 1905. 1905
$2541643 81 s1.15s.496 OF