New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-03
TO CHANGE EQUITABLE
Bill for naturalization of the So.
ciety introduced at Albany.
AT REQUEST OF H0TCHKISS
Measure Has Approval of Com
pany's Officials and j. Pier.
pont Morgan.
Try Telegraph n The T-1bun,

Albany. Nav AT the request 81 SUI
perintendent Hotchkiss ~ the state In
surance Department. Senator sullivan and
Assemblyman Hoey to-day introduced a
bill designed 10 help along the mutualIzs-
ton Of the Equitable Life Assurance So
ciety formal statement given out AZ the
department says the measure has the
approval OF the naturalization COMMITTEES
cf the society and the voting trustees
representing J. Pierpont Morgan. holder
Of the HYDE stock. purchased from Thomas
Fortune Ryan.
The bill amends two sections Of the In
surance Law. II permits life insurance
companies 10 invest in their own stock as
step toward naturalization. Also IL pro-
vldes that stock life insurance corpora
ton may become a mutual company by
carrying ont any plan for the acquisition
Of its stock which shall he adopted by a
majority vote Of its directors and sp-
proved by a majority vote OF its stock
holders and q majority vote ot its policv-
holders ~ meetings in each case called for
the purpose. and also he submitted 10 The
Superintendent ~ Insurance and by him
approved In writing Thus any ot the
plans which nave been considered hereto
fore may If adopted and approved as
above stated be carried through
These two sections. in connection with
= section which nou authorizes the en-
franchisement Of policvholders. would
provide sufficient statutory sanction for
the complete naturalization ~ the same
procedure we're taken as IN the case Of the
nutualiza ton Of the Phoenix Mutual Life
Insurance Company OF Hartford about
twenty years ago
In that case the president NJ the COM
pany owned l.002 ont Of 1000 shares Of
stock. and was about 70 dispose ~ them.
The Connecticut Legislature cooperating
win tho state Insurance Department
and representatives OF tie policyholders
passed q Law which was in effect, an
amendment OF the company's charter. au-
thorizing the CARRYING out OF plan
WHEREBY, with the approval OF the depart
meut and policvholders. all Of tho stock
could be acquired and pad for out OF the
surplus Of the company. the voting power.
nend.nz tho acquisition of the last share
being Vested N tho Insurance Commits
-ioner ~ that state As result this COM
pany became wutuslized withou, serious
trouble.
The department saws that While TIE
problem in the Equitable is magnifed
MANY times owing 20 its being much
larger than the Phoenix Life. ? plan can
be carried out which will IN a reasonably
short time accomplish tho same result for
tho Equitable
Tho nil drafted by tho Insurance DEPART
ment ana Introduced n Albany Yesterday
for the purpose OF facilitating the mutual
ization Of the Equitable Life Assurance So
ciety was characterized mere by officials OF
the society IS the first essential step
toward CARRYING out tie idea Of mutualza-
ton - approved by resolution adopted
a. jhe last meeting Of tho board Of dlrec-
tors, on April % when eX-Juige William \.
Day was elected president OF the societ".
Spedhn3 on behalf of President Day
Yesterday. his representative said:
~ 81 true tnat mo hiii introduced ri
Albany has been approved by our mutual
izatioU committee and is the first necessary
step taken 10 carry ou- rho naturalization
of ~" society IN accordance with the rcso-
luton edop'ed II the last meeting OF the
board II directors. It is essential 10 OBJ
tain the proposed legislation 20 permit tho
-1Ciat" 10 invest I'M its own stock. The
amendment :" the insurance Law u needed
before Nc can even begin 70 neeouatN for
tho stock The introduction ~ this dill
does not mean that any definite plan Of
n1utus Iizat ioI has Deen worked oUt. but
merely that n IS preliminart step boy that
direction II will he recalled that tho board
of directors approved Of naturalization. pro-
-i9ed it cOulC he accomplished without pro-
rractcd litigation and without substantial
reduction cf he surplus.
The naturalization committee ~ the
Equitable. as told I'm The Tribune. stopped
WORK Tor several weeks prior 20 the cleo
ton or Judge Day. on April 20. out resumed
rs Ia borS again soon af'erwsrd In the
lI.a .f.fC IIf /. n
Superintendent Hotchkiss Of the Insurance
Department had urged upon the Director
and tho committee tho adyiSatility Of car
ryi0g forward he plans for naturalization.