New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-17
Effect Of M0RCAN'S
DEATH ON EQUITABLE
oninion Expressed FinanCier
Arranged in Will to Have
Voting Trust Continued.
FAVORED NATURALIZATION
His Plan, 1t Is Thought, May Be
Revived, Although Society Of
fcials Oppose Scheme-Son
N. Y. Central Director.

nUlolo OPPSSS SAiSihS SOA
N. Y. Central Director.
II was the opinion yesterday of those
who were familiar with the circum-
stances under which j. Pierpont Nor
can bought the controlling interest in
the Equitable Life Assurance Society
in December, 1909. and recalled his ex-
dressed purposes in buying the stock
At the time, that lie probably would
continue. through his will. the voting
trust under which it is held at the pres
ent time.
The voting trust was created by Mr..
Morgan in December, 1910. to run for
FIVE years, and eX-Judge Morgan j.
O'Brien. George W. Perkins and Lewis
Cass Ledyard were appointed as the
trustees. Mr.. Morgan's name was at
tached 10 the trust instrument to-
eether with the names of the three
trustees. and it is thought likely that
me OllA NIdllSC may pN III SNbSNAN "a NA4Ao
his sons name as trustee in place Of
his own. That would not mean that
property rights in the stock would re-
vert 10 his son or TO his estate.
II was said to be Mr.. Morgan's inten-
ton in buying the J02 shares Of Equi-
table stock from Thomas F. Ryan TO
eliminate for good and all the enormous
assets Of the company as a powerful
factor in the financial situation. 1t
was his earnest desire that the COM
ranv eventually should be mutualized.
Explained Situation TO Friend.
II will be remembered that he was
quoted al the time. in explaining the
situation TO a friend, that he had OBJ
tanned a controlling interest in the
company in order Ito remove the Equi-
table forever as a great financial men
ace and protect the fortune of his son
and his sons SON."
NEGOTIATIONS between the trustees
under the voting trust, the State In
surance Department and the board Of
directors of the Equitable toward
naturalization were broken off more
than q year ago, and nothing definite
has been done toward that end since
that time. The principal obstacle to
naturalization appeared to be decided
hesitancy on the part Of the directors
AZ 10 the expediency Of taking the large
amount Of money required 10 purchase
tbe stock from the surplus Of the COM
nanv II was found it would take be-
tween S6.OOO,OO0 and 100000 under
The scheme of naturalization suggested.
The Morgan stock represented 5000
0n0 the amount paid for it by Mr.. Nor
gan
Whether the naturalization idea VIII
no revived as a result of Mr.. Morgan 5
death will probably depend largely
mon any suggestion he may have made
i'm his will in that respect. There are
some Who think he may have provided
some .av 10 make naturalization easier
Of accomplishment. Officials OF the
Eoujtable are known TO be unfaVora Die
,o the naturalization scheme unless
some means are found to bring 1t
about without demanding the with
drayal Of so large a sum Of money
from the surplus.
The trustees under the voting trust
were understood TO have taken office al
the time with the expressed slpula-
ton that naturalization should be car
ried out within the first year that they
held office, if such plan were found
TO be feasible. but as negotiations
dragged along and one objection after
another was raised the matter was de-
ferred beyond that time and finally
dropped altogether.
Question Of Constitutonality
The question Of the constitutionality
of special legislation to further the
plan arose, and that. together with the
other objections, led to a grave doubt
IN the minds of some of the parties in
terested IT, after all, the naturalization
Of the company would protect the in
terest Of the policyholders more ef-
fectively than the plan under the vot-
ing trust.
In any event, the opinion obtains
that Mr.. Morgan's expressed purpose
Of divorcing the Equitable assets from
the menacing influences Of the finan-
cial situation will be carried out under
his will. Just how he may have pro-
vided for this, Of course, will not be
definitely known until the provisions
Of his will are made public.
Albany, April 16-J. Pierpont Morgan
was elected a director of the New Iorl