The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-01-04

the trust which he created, he never
saw the deed of trust after he execut-
ed it. For reasons which seemed good
to j. p. Morgan he offered two years
ago to buy the majority control. In
his testimony before. the Pujo COM
mittee Mr.. Morgan stated that this
offer was made solely OF his own pur.
pose. and that not at any time had
Mr.. Ryan intimated to him a willing
ness to sell. The sale was made. 1t
was necessary to take the deed OF
trust to the surviving trustees-Geo.
WESTINGHOUSE and ex-Judge Morgan
j. 0'Brien-for their Endorsement in
But where was the deed Of trust.
Judge Q..Brien did not know. Neither
did Mr.. Westinghouse. It was found
by George +. Parker, who had been
secretary for the trustees, In a safe
deposit box, from which it had not
been taken during its five years Of
life.
Mr.. Morgan actually made the pur-
chase and presumably paid the $3,-
deed of trust. And that curious in
difference to the visible instrument
which conveyed to him the title in
ffty-one per cent Of the capital of the
Equitable Life Assurance society is re-
ally illustrative of Mr.. Morgan's en-
tire relation to the whole matter.
Morgan Gives Reasons.
One of the questions asked OF Mr..
Morgan when he was upon the wit
ness stand was so framed as to bring
from him h reasons why he thought
~ to purchase Mr.. Ryan's
control of the majority of the Equit-
able Life stock. Mr.. Morgan's rea-
son was set forth in a few words.
The death OF e. H. Hartman to whom
Mr.. Ryan sold q portion of his interest
IN the Equitable stock and the fact
mat Ryan was himself not in the best
OF health. were asserted by Mr.. Nor
gan to be his reason for thinking that
1t was the better part to have this
control transferred to him. so that
ne could continue the trusteeship.
Here. then. were two transactions
involving in all $4,000. 900. or there
ahouts. behind which stood a deed OF
trust which the original maker Of that
deed never saw. excepting once and
which the second maker Of the deed,
Mr. Morgan, never has seen at all, UNI
less his eye has passed over it recent
ly.
Probably in all the history Of great
financing there is no transaction
which in this respect can be compar-
ed with this.
Mr.. Morgan. in a few words, did.
however. set forth the purpose which
led him to buy the majority of the
Equitable stock. He said it was his
hope that in some way the stock
woud pass into the possession of the
policy holders or the company so that
thereby complete naturalization Of this
company could DO secured. His an
swer seems to have escaped the at
tention Of the public.
Has tO Paw Heavv Intoro~<
Ihere are. however. some very diff
ncult questions to be answered before
Mr.. Morgan's plans can be carried
out. In the first pace, the control of
this stock by Mr.. Morgan has been.
IN some respects not suspected by
Morgan has been since the purchase.
and will be until he disposes Of the
stock. compelled to meet the very
heavy interest charges. These run
from $4,000 to $4,000 a year. The
dividends OH the stock are fixed .by
law at the rate of v e per cent per
annum. These dividends return to
Mr. Morgan about lilo Of one per
cent upon the investment.
In the next place. the s~ensftiyeness
Of the public. the frequently aroused
suspicion that transactions involving
large financing and the creation Of
trustees representing the desire to Sc.
cure personal and pecuniary advan-
tage have made it %expedient for MIR.
M!organ's house to lean backward
whenever the suggestion has been
made that the Equitable company be
offered opportunities to share in some
Of the ownership of the stock Of the
house. This at times has been moro
Of Il disadvantage to the Equitable
than to j. J.. Morgan & Co. All
the transactions have been. limited in
number and In amount. And as some
Of the offerings made by MI. Morgan.s
house have. been Of a nature to tempt
investors. the Equitable has not sl,ar-
ed equally, with other large institutions
In propositions of this kind.
But the great difficulty Mr.. Nor.
gan's plans will meet with ia not ne
his own creation. The question is.
how shall the Equitable Assurance so.
ciety buy and absorb the capital stock
OF the company? Would the state In
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