New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-06-15
J. Pierpont Morgan Reported
Not to Intend Disturbing Gen.
troll of Majority Stock.
AGREEMENT EXPIRES TODAY
Surviving Trustees Proposal Of
Five Year Extensions Said
To Be Acceptable
Financier Writes.

1905. from James Hazen Hyde and
placed it under control Of voting trus-
tees for a period of five years. expiring.
to-day. Mr. Morgan. who has been
abroad since February. will sail for
home to-day
The Equitable stock was bought by Mr.
Morgan subject TO the trust under which
the late ex-President Grover Cleveland.
ex-Justice Morgan ]. O'Brien and George
Westinghouse were made voting trus-
tees for the benefit of the policyholders-
Section 8 of the trust agreement. after
reciting that the agreement is 20 con-
tinue for five years. says:
1t shall be continued thereafter so long
as the trustees shall deem advisable. and
the party of the first part hereby agrees
that. upon the expiration or any period
OF FIVE years he will. upon the request
OF the trustees. execute an instrument
continuing. for z further period OF hNe
years. this agreement and the powers OF
the trustees hereunder. including said
power to require an extension hereof
This agreement may however, be tern1i-
Lated by the trustees in their discretion
whenever in their opinion its purposes
have been accomplished or for any rea-
son its termination is, in their opinion,
advisable
The surviving trustees. Messrs- O'Brien
and Westinghouse. in a letter TO Mr..
Morgan bearing date May and made
public yesterday leave it entirely at his
option to decide whether or not the vot-
ing trust agreement shall be continued.
although expressing themselves in favor
of it's continuance. Their letter. after
referring to the beneficial influence Of
the voting trust arrangement in Testor-
ing public confidence in the Equitable
and re-esta blishing it in it's old position
as one of the largest and strongest m
surance companies in the United States,
continues. in part:
Confidence in the Trustees.
Although il was provided that the
policyholderS should in each year make
known their preference for directors OF
their own class, their position after the
first year under the agreement was TO
commit the selection of the policyhold-
ing directors to the Judgment exclusive
ly OF the trustees. The result, therefore.
has been that all the directors elected
during the five years have been those Sc
lected by the trustees, thus showing the
confidence which not only the stock
holders but the poiicyholders had in the
and progress of the society
With such an experience we cannot
but feel that il would be wise to con-
tinue the voting trust agreement The
change in ownership and the rights
" hich YOU have secured as the owner or
a majority of the stock of the society
have altered the situation to some e1l-
tent. and while we would recommend
that the plan of voting trust agree
ment should be continued, We do not
carrying it out by trustees not of your
own selection and that you should be
entirely free to adopt that course which
in your judgment seems wise and best
Ii. therefore, you have other plans, or
should YOU deem il advisable to con-
tinue the voting trust. we will leave You
entirely free to select such trustees as
you may think proper, by failing to
make a request upon you TO execute an
agreement continuing il for further
period of five years, as provided IN the
ninth paragraph above quoted
Ii would be impossible. in view of our
relation to the society. not to be deeply
interested in its welfare and we shall
at all times be ready and willing TO do
what we can to promote its success and
prosperity Your interest, because or
YOUR ownership of majority of the
stock will necessarily in the future be
exceedingly great. and this. added 70 the
knowledge We possess OF your hlSh Po-
sition in the public esteem and your
broad public spirit. which would inf1u-
cnce YOU TO do that which YOU believed
was for the best interests of the society
and it's policyholderS. has led US TO con-
cIude that we should relesate to You the
right and power of doing what in the
premises you think is proper and just
Morgan's Reply Non-oon1mittsl.
Mr.. Morgan's reply to this letter Is
dated June Il. and gives no indication
whatever of his intentions. although, as
already said. it is learned on excellent
authority that he plans to maintain the
voting trust policy. perhaps substituting
a new form of agreement for that IN
force during the last five years. and IN
all probability naming three new trus-
tees TO I'LL the vacancy caused by Mr.
Cleveland's death and TO take the places
of Messrs. O'Brien and Westinghouse.
who are understood to be disinclined TO
serve longer. Mr.. Morgan's letter 10
Justice OBrien ard Mr. Westinghouse
follows:
II received your communication IN re-
lation 10 the future of the Equitable Life
Assurance Society. and TO your admins
tration of the trust under which you
have for FIVE years voted upon the stock
of the company
THE delay in answering this conlmuni-
cation has been due TO my absence from
the country. in consequence of which
did not receive your letter until short
time ago.
II wish to assure you OF my high ap-
probation OF the disinterested and VAL
liable services that you. in connection
with your deceased colleague. President
Cleveland have rendered to the COM
pany and its policyholders by your adj
ministration of the trust. and person.
ally to thank you for. your devotion.
which resulted so advanta geously TO the
company and its poIicyholders.
Increased Morgan's Influence.
II has been commonly recognized in
Wall Street that the purchase of the
stock control OF the Equitable Life has
materially increased Mr.. Morgan's al
ready great influence In the financial
world particularly in the banking field
Last November Henry p. Dawson. OF
j. p Morgan & Co, secured control OF
the Guaranty Trust Company through
the. purchase OF the e II. Hartman es-
tates holdings OF about 5000 shares.
the Mutual Life's holding Of more than