New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-19
NATURALIZATION FIGHT
Details Of Struggle with Equita
BILE Come to Light.
ELECTION PLANS ILLEGAL
Bill Compelling Adoption Of Su-
perintendent's Ideas Now
in Governors Hands.
Some Of the details of the struggle Of s

Some Of the details of the struggle Of SUI
,er,ntendent Hotchkiss OF the State Insur-
ance Department to force naturalization OF
the Equitable Life Assurance Society be-
car me known yesterday when Deputy Super
,ntendcnt Fowler OF the Insurance Depart
ment made public the letter written by
superintendent Hotchkiss on Nav to the
directors of the Equitable refusing to re-
ceive the nominations for policyhoIders d.
rectors made by the society.
At the directors meeting on April 90.
vban w A. Day was elected president OF
the Equitable against the wishes OF the
Insurance Department and the trustees OF
! p. Morgan's majority stock in the socie-
" Mr. Hotchkiss forced the board 10 adopt
a resolution ordering the immediate resump-
ton OF the work Of naturalization. There
were meetings after that between Superin-
tendent Hotchkiss and Robert Mather. rep
resenting the naturalization committee OF
the Equitable. but the work did not go
ahead as rapidly as Mr.. Hotchkiss thought
II should. and on April % the society sent
TO the Insurance Department the names of
seven policyholders' directors TO be voted
for at the next annual meeting. on December
g. according TO the practice Of the last four
years.
Mr. Hotchkiss at once asked Attorney
General Carmody for an opinion on the le-
rality OF the election Of a majority Of the
directors Of the Equitable by the policy
holders under the plan that has been used
since 1907. The Attorney General returned
an adverse opinion and Mr. HOtchkiss on
MAY s sent back TO the Equitable the list of
directors 10 be voted on by the policyholders
in December. refusing 10 file it with the
Insurance Department and insisting again
on the naturalization Of the society.
Following this action OF Mr.. Hotchkiss,
the bill providing for the naturalization 81
the Equitable was introduced in the Legis-
lature at Albany. and has been passed by
both houses There will be hearing on IL
to-day before Governor Dix. al which Mr..
Hotchkiss and the voting trustees will make
arguments in it's favor. II the bill is signed
by the Governor IL will be possible FOR the
naturalization plans TO be so far carried
out this summer that the policyholders can
elect their proportionate number OF the di-
rectors Of the Equitable az the next an
nual meeting in accordance with the law
and mutualiZatio will be well under way
tc becoming an accomplished fact.
The bill passed by the Legislature pro-
vides for the election OF twenty-eight Of the
ffty-two directors by the policyholders
while the remaining twenty-four directors
are 10 be chosen by the stockholders. Il
company under plan TO be agreed upon
by the stockholders. the policyholders. the
Attorney General and the Insurance De-
partment Power is given 10 the society 20
buy and hold its own stock, and provision
is made for an amendment 10 the charter
20 put these changes into effect. The
amendment will have 10 be passed on by
the Attorney General. but will not have 70
be approved by the Legislature
The law provides that in a mutual COM
pany notice of an election Of officers and d.
rectors must be sent To the policyholders al
least three months in advance Of the cleo
ton. Under this law the policyholders of
the Equitable must have notice OF the next
annual election not later than September S,
but as the naturalization plan has already
been agreed on there will be plenty of time
for the necessary detail work 10 be done
and the plan adopted by the four parties
by whom IL must be ratified. so that the
can receive their notices Of
the election by the legal date
After the naturalization plan has been
adopted and the charter amended. the stock
holders will continue 10 elect twenty-four
Of the directors until the last share Of stock
has been bought in by the society. while the
will elect only twenty eight
directors until an the stock has been bought
III and naturalization fully accomplished. In
order that the aims Of Mr. Morgan 10 have
the policyholders control the society may be
carried out, his stock will be the last 10 be
bought in and the voting trust Of his major
ity stock will be continued until all the
minority stock has been acquired.
This will be done. as Mr.. Morgan's trust
agreement provides that the directors for
" HON his stock is voted shall be selected by
the policyholders. The price for his stock
has been set at cost and interest. and as
soon as the minority stock Is all bought in
his stock will be turned over TO the society
az that figure