Omaha daily bee., 1909-12-04
iALPIAN FOR EQUITABLE
Control by Morgan Means Change in
Organization Of Company.
RYAN STOCK Is PURCHASED
II f. Subject to Voting Trust
Agreement, Which Expires Next
June 80 Not RE-
newed.

NEW YORK, Dec. 3.-Purchase Of the
majority OF the stock OF the Equitable
Life Assurance society by ]. Pierpont Nor
gen, a move Of vast import to the financial
word because Of the virtual passing Of
control Of nearly S5,0OO,O 10000 Of assets and
the domination Of two large trust com
panies-is believed in wall street today to
foreshadow a still more important move
the naturalization Of the Equitable.
The naturalization phase Of the Equitable
purchase by Mr.. Morgan from Thomas F.
RYAN was discussed today, but no def.
mite information was obtainable. Former
Justice Morgan J. o'Brien, one Of the
Equitable trustees, declared that the pres
ent system whereby the stockholders and
poIcyholders Joined in the election OF
directors was not desirable, as the re-
sponsibility OF control could not now be
fixed either on the stockholders or the
~pollcyholders.
II am sure that a naturalization Of the
company would be to It's interest" said
Mr.. O'Brien.
William H.. Hotchkiss, state superln-
tendent of Insurance.. said today that the
subject Of complete naturalization of the
Equitable had been the subject Of con-
sideration for some months
Control by j. p. Morgan.
Control of the Equitable. which
was secured by Thomas F. Ryan soon
after the insurance scandals Of some years
, ago, has passed to J. Pierpont Morgan
with the $472. 100000 Of assets which the
company declared in it's last statement.
The transfer apart from its magnitude as
a chapter in the history Of finance, marks
a complete reversal Of the old order under
which the insurance companies controlled
the d~estinies Of the banks and trust com
panies.
News Of the transfer was contained in
the following brief statement issued from
the office Of Morgan g. Company:
mr.. Morgan has bought the majority Of
the stock Of the Equitable Life Assurance
society, formerly owned by Thomas F.
Ryan. This purchase is subject to the
trust under which Grover Cleveland, Nor
gan, O'Brien and George Westinghouse
were made voting trustees for the benefit
Of policy holders and 1t covers all Mr..
Ryan's interest. including all the stock
purchased by him from James H. Hyde"
No Details of Deal.
Beyond these bare facts, Mr.. Morgan and
his partners declined to give any details.
The exact amount of the stock bought b
them and the price they paid remain 70
subsequent announcement. Nor would they
name any other interests allied with them,
although 1t is commonly understood in
Wall street that at least one large trust
company may take a hand in the deal II
the consent Of the Equitable is obtained.
Under the terms Of the trust agreement
referred to in Mr.. Morgan's announcement
the Ryan stock could not be sold without
the consent of the surviving trustees,
whose. term OF power held until June 10
ment fer another five years IL they saw
next and who might continue the agree
fit. Both Of them are very busy men and
as they have served the society without
pay 1t has long been taken for granted
that they would be willing to pass on their
responsibilities to other shoulders IL they
found they could do so without prejudice
to the policy holders. Prior to conflrma-
ton Of the transfer, neither Mr.. West
inghouse nor Mr., O'Brien would discuss
either its details or its probabilities.
Ryan buys from Hyde.
Mr.. Ryan's holdings in the Equitable
were bought in large part from James H.
Hyde, although Edward II. Hartman had
laid plans, which. as he supposed, were
to assure him the control which went in
stead to Mr.. Ryan, 1t was during the
hearings OF the Armstrong insurance in
vestigation that Mr.. Hartman, when
questioned on this point, coined what sub
sequehtly became a national byword. He
was asked If he had settled scores with
Mr.. Ryan and answered Jersey: mot
yet The public added with ready in
tuition. but SOON
At the offices Of the Equitable society