New-York tribune., 1911-01-20
EQUITABLE VOTING TRUST
George W. Perkins, /. C. Led
yard and N. J. 0'Brien Named.
FILE AGREEMENT AT ALBANY
]. P. Morgan Can End It at Any
Time, and Garry Into Effect
naturalization Plan.

-
although not with surprise, the news from
Albany that new voting trust agreement
covering the control OF the majority stock
OF the Equitable Life Assurance Society,
now owned by ]. Pferpopt Mofan. had
been fled with the State Insurance De-
partment and that the voting trustees
were 10 be George w. Perkins. Lewis C'ass
Ledyard and ex-Justice Morgan ]. O'Rrien
who was associated with George Westing-
house and the late ex-President Grover
Cleveland in the Ryan voting trust. II has
been commonly reported for some time that
new voting trust was 10 be constituted
and that Messrs. Perkins, Ledyard and
O'Brien would be the trustees.
The new agreement, which is dated De-
cember 81. 1910. is identical with that e.e-
cuted by Thomas F. Ryan in June, 1905.
except that the clauses giving the trustees
power TO renew the trust at the end Of each
five years are omitted, and Mr.. Morgan
is permitted to cancel the agreement at
any time, although the nominal life OF
the new trust is five years. The provision
empowering Mr.. Morgan TO cancel the
voting trust agreement at his pleasure is
understood TO have been inserted with the
object of enabling him 10 carry into prompt
execution the naturalization plan when II
shall he perfected and shall receive the
sanction OF the Insurance Department.
AT the offices Of J. p. Morgan IG Co. II
was said that Mr. Morgan had nothing 10
add 10 the statement given out at Albany
by William II. Hotchkiss, State Supern-
tendent OF Insurance, in regard 10 the
Equitable Life Assurance Society voting
trust agreement
1t was learned that Mr. NIorgan's plan
for the naturalization Of the Equitable,
which he is wording out in cooperation
with the State Insurance Department, is
progressing as rapidly as could be expected
considering the many legal and other diff
cultes that stand in the way OF it's accom-
plishment and that # would probably be
put in operation before the end of the year.
No details Of the plan could be obtained,
but II was said that before It could be car
red out IL would be necessary 10 go TO the
Legislature for an empowering act" and
that this would probably be done at the
present session.
It became known yesterday that the
amount Of the company's assets I'm excess
Of it's reserve and other special funds, for
into two parts. the largest Of which Is held
awaiting apportionment on deferred divl-
dend policies and the remainder carried as
actual surplus. as is done by the mutual
companies. Thus I'm it's last annual state
ment TO the Insurance Department, instead
Of surplus Of 2,162,755, reported in the
statement Of the preceding year. the actual
surplus Is given as only SS,32S,744 while the
sum Of s59,S ,266 is set apart for apportion-
ment on deferred dividend policies.
One Of the difficulties that has stood In
the way Of the naturalization Of the Equi-
table has been the question Of what should
be done with its vast surplus, but appar-
entity this has been overcome by adopting
the method OF the mutual companies in di-
viding the surplus as above stated That
the change is a step In the direction Of the
naturalization Of the Equitable IS the belief
in well informed quarters.
J. Piorpont Morgan obtained stock con-
troll Of the Equitable Life Assurance Com
pany early I'm December, 1893, through his
purchase from Thomas +. Ryan Of so out
OF the total of 900 shares. When Mr..
Morgan secured this majority stock, how
ever, he did not get unrestricted control Of
the COMPANY as the voting trust estab-
lished by Mr.. Ryan was stll in existence.
and under the terms Of the trust agree
ment the powers incident TO the stock were
lodged in the hands OF the trustees on
June l5 1910, however the voting trust eN-
pIred by limitation, and the surviving
voting trustees, eX-Justice Morgan J.
O Brien and George Westinghouse-the
third trustee, ex-President Grover Cleve-
land, having died before Mr.. Morgan
bought Mr.. Ryans stcck-who had the op-
tion Of renewing the trust for another five
years. electedto dissolve II and turn con-
troll Of the great institution over 10 Mr.
Morgan. In doing 50 they announced that
they relied upon him to act for the best
i,terests Of the society and its policy
holders.
In reply TO request from Supeuntend-
ent Hotchkss for a statement as to his
intentions concerning the company. shortly
after he had purchased the stock control
from Ny. RYAN, Mr.. Morgan said that in
acquiring the stock he had single pur-
pose'y, namely, 10 prevent it being sold 10
different individuals. and thus make II i'm |
possible that at the expiration Of the voting |
trusteeship this great interest could he /
Used to the detrment OF the policyholders |
He also expressed desire for the Co-opera- |
tion Of the Insurance Department In work |
ing out a plan whereby the stock would he |
in the interests of the policy |
holders.
The correspondence between Mr.. Morgan |
and the state Insurance Department r-la- |
tive 20 the new voting trust agreement fol- !
lows:
New York January Il, 1911 |
fion. Wm n Hotchkss,
Superintendent OF Insurance.
Dear Sir. | herewith send YOU the Not- |
Ing Trust Agreement of the Equitable Life |
Assurance Society, which ] have executed. |
You will note that II places US all in such |
a position that when some determination |
icyholders, and which is satisfactory to |
your department, u can be carried into et-
feet without unnecessary delay.
! trust that you and the trustees will |
continue TO pursue the subject until plan |
Is worked out that VIII be satisfactory 10 |
all concerned, and to that end | would be-
sleak continuance Of your kindly inter-
est and cooperation. Very truly yours,
tSignedJ j. PIERPONT MORGAN.
state OF New lOTk, Insurance Department,
Albany, January Is, 1871.
Mr. J Pierpont Morgan.
Wall and Broad streets New York.
Ny Dear Sir. This acknowledges yours
ment contained therein evidences tho I'M
Outstanding arrived AT some months ago, |
which was IN substance. as follows.
That, pending the ascertainment OF a
legal means wereby the Equitable Life
Assurance Society could without pro-
iracted litigation or a substantial reduction
Of its free surplus be made a mutual com
pany, I'm fact as well as by representations,