New-York tribune., 1911-04-22

10 detailing the plans for naturalization
'ilat mad been adopted The negotiations
then passed to the stage Of cor.,dsr,rg
,he laws that must be adopted bv the
Legislature at Albany In order that the
plans might be put into effect law
mad already been adopted by the r.eois-
'ature for the express purpose Of allow
ing the naturalization of the Enuitah,e
put the lawyers were afraid that Its con-
stitutionality might be questioned.
TWO bills were 10 be introduced. One
was To provide that the Equitable could
buy hold and vote it's own stock-some-
thing not possible under the present
Jaws Ihis bill was TO provide, Also
Tor the method hy which the stock was
TO be bought by contract: for II was
foreseen that some Of the small stock
holders might refuse to sell. In the hope
OF getting higher price. and mutualiza-
uon might thus be n gradual process
In oroer to prevent such a situation
from killing the naturalization scheme
the contract method OF buying the stock
was devised, by which contracts could
be made calling for the transfer Of the
stock 70 the society when all the holders
mad come Into the plan and providing for
the voting of the stock by the society
from the date Of the contract
The second bill was to provide for an
amendment TO the society's charter. al
lowing IL TO buy the stock out Of the
surplus. Under the charter as II stands
at present all the surplus must go to the
policyholders, and an amendment is
needed TO allow of naturalization in that
way.
This was the point which had been
reached when on March 80 Paul D. Cra-
vath. Thomas F. Ryan's personal attor-
ney, appeared in the councils Of the
Equitable, and on that date all negotia-
tions for naturalization ceased But
yesterday morning. after the directors
had elected Mr.. Day president on Thurs
day. Insurance Superintendent Hotch-
kiss received from Thomas Spratt, chair
man of the naturalization committee OF
the Equitable, a letter quoting the reso-
luton in favor Of naturalization adopted
by the directors and saying that Robert
Mather had been appointed a special
committee on legislation TO confer with
Mr.. Hotchkiss on the laws needed to
effect naturalization.
Mr. Hitchkiss wrote TO Mr. Mather
yesterday to arrange for a conference
next week to consider the laws needed
-
adopted before March 30. Mr.. Hotchkiss
is determined TO have the bills drawn and
presented TO the present Legislature so
that they may be passed before adjourn
nent and all the details arranged for
mutualizing the Equitable without delay.
Mr. Morgan is equally determined that
the Equitable shall be mutualized and
made an insurance company only. and
no longer a great and important finan-
cial factor He bought the controlling
interest In the stock at time when II
was about TO be distributed among sew
eral holders.
When F. II. Hartman died he wss
negotiating with Thomas F. RYAN for
the purchase Of a one-tflird interest In
the Equitable. The rest of Mr.. Ryan's
holdings was to be distributed among
several persons. The negotiations with
Mr. Hartman were continued with his
estate. Mr.. Morgan learned that the
Equitable stock was thus 10 be spread
among a number Of holders, and, know
ing that II would be practically impos-
sble ever again TO gather 1t into the
hands Of one man, himself bought the
entire block from Mr.. Ryan and formed
his naturalization plans. in order. as he
expressed the situation TO a friend, "to
remove the Equitable forever as a great
financial menace and protect the fortune
Of his son and his sons sons"