New-York tribune., 1909-12-04
EQUITABLE CHANGE
MORGAN STRONGER.
Acquisition of Stock Helps
Banker an Wall Street.

Speculation was keen i'm financial circles
yesterday 10 the extent Of the changes
that would follow the acquisition by J.
pierpont Morgan of the stock control Of
the Equitable Life Assurance Society.
There were many different answers Ia the
question. hut IL Was generally recognized
that through his ownership OF the stock
of this great insurance company Mr. Nor
gan would he able 10 Increase greatly his
influence in Wall Street affairs. At his
Office il was denied that there would be any
mergers of banking institutions in the near
future
Although IL is well understood that the
purchase Of the stock from Thomas r.
Ryan was subject 10 the deed of trust
made by him I'm 1895. lawyers familiar with
this document We're not willing 10 express
an opinion yesterday as 10 whether MI
Morgan. the new owner. would be obligated
To assent 10 a renewal 81 the trust agree
ment FOR another hve-yesr term after its
expiration. on June H. 1910. Mr. Ryan had
60 obligated himself
As matter 81 fact. the trustees are not
Important from the point OF view OF the
policyhOlders as before the charter OF the
society was amended. Formerly the stock
elected all the directors. and I'm order 10
was provided I'm the trust deed that the
trustees should elect such seven out Of each
class Of thirteen chosen as the policyhold-
ers should select Since the charter was
smcn6ed the stock elects only minority
Of the directors and the policyholders elect
seven out ~ each class. under the super
vision OF the State Superintendent OF In
surance
An impression Was prevalent yesterday
that unless there was strong opposition on
the part Of the policyhOlders Morgan J.
o'Brien and George Westinghouse. the sur
Niviag trustees would he willing 10 let the
trust agreement lapse AZ fits expiration. In
June. Mr.. OBrien has strong faith I'm the
benehcent plans OF Mr.. Morgan for the
polcyholders IL is understood that law
ycrs are now working on a plan by which
complete naturalization may be attained.
II was learned yesterday that early last
spring Mr.. Ryan entered into an agreement
with z. II. Hartman whereby ne was TO
eel to Mr. Hartman one-haf Of his 5e2
shares AT the expiration Of the trust agree
nrent, in June This caused some surprise,
I'm view Of the bitterness that prevailed be-
tween Mr. Ryan and Mr.. Hartman AT the
time Of the fight for control Of the Equi-
table II VAS explained, however. that the
Equitable. having large sums Of money To
invest. could not ignore a man Of the finan-
cial power of Mr.. Hartman and that the
business relations between his various In
terests and the Equitable had continued.
Finally, Mr.. Hartman persuaded Mr. Ryan
that his large dealings with the Equitable
Gsve him the right TO ask for a substantial
stock interest.
As Mr. Ryan had decided 20 divest him
of rge . 4.
yielded 10 Mr. Harriman's request The
latter's death. Of course. prevented the con-
sUmmation n the contract OF sale
Allan A. Ryan, son Of Thomas F. Ryan.
said yesterday that the sale Of his fathers
stock had no significance other than that
he had decided TO gradually restrict his
business interests.
From the best information Obtainable IL is
understood that the price paid by Mr.
Morgan for the stock was $4,000 (Which
was what Mr.. Ryan paid James Hazen Hyde
in 1850. with the add'tian Of per cent in
terest from that date
A. y. Dawson, of J. D. Morgan & Co,
said Yesterday there was nothing more TO
D. said except 10 emphasize the last para
graph 81 statement previously given out
10y Paul Morton. who was placed at the
head Of the Equitable by Mr. Ryan. and, il
i understood ~ 10 remain
Mr.. Morton said.
Under Mr.. Morgan's ownership of the
majority stock Of the society its affairs will
he conducted heretofore. by it's board
of directors. with an eve single 20 the inter
ests of its pOlcyhoders ="
Paying tribute 10 Mr.. Ryan. Mr. Nor
ton said:
While Mr Ryan held the shares his at
tiiude toward the society was IA every way
scommendaihe. a. he did not seek 10 interfere
with tho management in the slightest de-
gree. Re should he given great credit for
what he did for the society in the time Of
its troubles. and is entitled 20 the thanks
OF the policy holders