The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-25
10 FIeHH CAPITALIZATION.
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u Ia practically crrlaln that so,ne oue ~
the minority Stockholders N the Equitable
iAfe Assurance Aoeisty will tess the con
~stltutlonality u tho nav Insurance. hw
which enables the aocsty'a directors, with
the Opnsent n tho majority atock, 10 give
tho pohcyholdsrs control ~ the governing
hoard.
That was said positively yesterday by a
man r~eprresntlng one u the minority hold
err. This man said that the injunction
which Franklin n. Lord obtained a/year
ago restraining the directors from putting
into eject the plan Of naturalization nov
proposed was obtained. frsi, on the ground
that IL was Illegal, and. second. on the
ground that IL violated property rights Of
the minority stockholder.
This man said further that the I4gisa-
ture had met the first objection by passing
the amendment proposed by the Armstrong
committee, but that In the opinion OF some
minority stookbolders the second objection
was just AZ strong now as II was when the
application for an injunction was first made.
Mr.. Lord aid that he had not yet de-
termined definitely what would be his atti-
tude toward Thomas r. Ryan's new plan
to m~utualize the society. He could not
tell over what attitude he would take toward
the application which the Equitable's coun-
sci will file for a modification OF the present
injunction.
II was said by one Of the minority stock
holders that none Of them Is opposed to the
mutuaiz alton Of the Equitable, II some
plan can be devised by which their property
rights will not be Injured. They would
have no objection, for instance. II the oom-
pany should retire the stock at its market
value. There were several minority stock
holders associated with Mr.. Lord In his
action. among them Charles w. Morse.
James Hazen Hyde also il in that class
now. but the feeling was yesterday that Mr..
Hyde would offer no objection to the pro-
posed plan. It isn't known definitely when
counsel for the Equitable will apply to the
court to have the Lord injunction modified,
but it will be In the early mart OF next week.
All Of the directors slated to retire under
the new plan who were chosen by the trus-
tees of the Equitable majority stock will
be renominated by the Equitable's manage
ment. The reason why the election OF the
policyholders' directors was not set earlier
than December is that the new laws require
that the list Of contract holders must be
fled FIVE months in advance Of the election,
which means in this case in July. The Equi-
tablets clerical force will have TO do some
tall h~ustling to get the list ready even in
the time available under the present ar
rangement. The Equitable has more than
500 900 policyholders. and the old lists will
all nave TO be revised. .
Robert 0lyphant, who was chairman OF
the expenditures committee OF the Mutua!
Life Insurance Company, and who arrived
on the Teutonic yesterday will be a witness
to-day before the special Grand Jury which
Ia Investigating insurance cases, Mr.. Oily
plant will be asked about certain vouchers
which he signed for legal expenses. .
DR.. Walter r. Gillette, former ~vice-presi-
dent Of the Mutual, was a witness before the
Grand Jury yesterday. Frederick L; Allen,
who was the chief assistant Of Julien T..
Davies when he was general solicitor for
the Mutual, was also examined Yesterday;
1t has been charged that Mr.. Allen told
Julius j. Heye, a ~bookkeeper in the supply
department of the Mutual, to leave the city
during the session OF the Armstrong COM
mittee. This has been denied by MIR. Allen.
Heye was a witness Yesterday.