The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1909-12-07

proportions the country has ever
known is being created with j. p
Morgan at the head.
How many insurance companies
trust companies and banks each with
many millions of assets, will be in
cluded in the combination is the sub
iect of unlimited speculation. In adj
dition to the purchase of a majority
of the Equitable s stock, the New York
Life Insurance Company, mutual
concern, with no capital stock, is al
ready in sympathetic alliance with the
Morgan house through George w.
Perkins, partner in the banking firm
and the power behind the throne in
the insurance company.
Another close associate of the Nor
gan interests is the First National
Bank. H. P. Dawson, its former vice.
president, is the latest partner to en-
ter the Morgan firm The First Ma
tional ranks third among the coun-
try's banks, and it's interests in other
financial concerns are very large
1t was Mr. Dawson who gave out
the following brief statement con-
corning the transaction:
"Mr Morgan has bought the ma
.OIlJy VI LuG SLOCh OI .lut
Life Assurance Society formerly
owned by Thomas r Ryan. This pur-
chase is subject to the trust under
which Grover Cleveland, Morgan j.
O'Brien and George Westinghouse
were made voting trustees for the
benefit Of the policy holders, and it
covers all of Mr.. Ryan's interests, in
Guiding all the stock purchased from
James Hazen Hyde.
The peculiar wording of the official
announcement, which does not def
nitely say that the stock was puTL
chased from Mr.. Ryan, coupled to
other circumstances, lends color to
the report that the Hartman estate
was the seller and that Mr.. Ryan had
disposed of his holdings secretly some
time ago to his former enemy, Harri-
man.
James Hazen Hyde inherited from
his father, Henry b. Hyde, fifty-two
per cent. of the capital stock of the
Equitable Life Assurance Society. The
great company is the only one of any
size in the insurance world to have
capital stock, the others being NUT
ual concerns, nominally controlled by
the policy holders. There exist 1000
shares Of par value of 500 each, rep
resenting total of 100000 capital
ization
The Hyde interest being majority
absolutely dominated and controlled
it. In 1905, when the extravagances
and responsibility of young Mr..
Hyde caused great upheaval and
exposure of insurance corruption, he
suddenly resolve to sell his holdings
and go to France to live. There was
a battle of financial interests for the
stock, because it controlled the hun
dreds of millions of cash and invested
securities. Thomas r Ryan was the
successful buyer
He paid young Mr. Hyde $4,000
900 cash for 502 shares. The remain
ing shares were scattered among nu-
merous holders Mr.. Ryan said at
the time he m AIDE the purchase in a
spirit of financial philanthropy in or
der to conserve the many vast inter-
ests involved should disruption come.
Under the society's charter only seven
per cent. dividends could be paid on
the stock, and the only direct income
which Mr.. Ryan could obtain for his
outlay would be S3514 annually in
dividends, This was a very small re-
turn for an investment of $2,500,00
which at the current interest rate of
five per cent, represented $125,000
annually.