The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-15
DIRECTORS OF
EQUITABLE MAY
SELL HOLDINGS
d. POnt Said to Favor Their
Turning Stock Over for
naturalization.
STATE OFFICIALS
ISSUE STATEMENT

Further assurances were given yes
tcrday by interests closely connected
with Gen. Z. Coleman du Pont. who
purchased the controlling stock In the
Equitable Life Assurance Society Of the
United States from J. p. Morgan. that
he intends to mutualize the company.
II was stated that Gen. du Pont plans
10 sell to the p~olicyholders OF the COM
pan the stock which he has just pur-
chased from Mr.. Morgan and has offered
70 the society Z three year option on 1t.
This will naturally mean the termina-
ton of the voting trust which was formed
by the late j.. Pierpont Morgan when
he purchased the stock from Thomas
Fortune Ryan several years < and
which now consists Of Morgan J. O'Brien.
Joseph II. Choate and Lewis Cass Led
yard. Stress was laid on the statement
that the purchase was Influenced by
philanthropic desires.
Gen. du Pont was in New York for a
short time yesterday on his way to Bos-
ton. He paid a hurried visit to the
nancia district, going over a few bus!-
ness matters at the Equitable Building.
IL is understood that Gen. du Pont
has announced his intention Of trying TO
induce the directors OF the Equitable
Life Assurance Society to sell their stock
10 the society at n fair price. namely.
what they paid for 1t. plus a legal
amount OF interest.
Rumors were in circulation yesterday
that the Charles w. Morse interests.
which are understood TO hold about
fifteen shares OF the Equitable stock.
might oppose the plan for a complete
naturalization of the company.
Morgan Won't Tell Price.
J. +. Morgan refused yesterday just
before he left for Boston to attend the
wedding OF his son. Junius Spencer Nor
ean. TO make any statement as to the
price he received for his stock or his
reasons for dispos!ng of it. Mr.. Morgan
considered the transaction a personal
one and intimated that he did not care
20 make public any of the details.
Rumors that Mr.. Morgan had pur-
chased "a large interest in the E. I. du
ront de Nemours Powder Company were
denied at the offices of the firm.
The variou trustees for the Equitable
stock refused to make any statement
yesterday. as did william A.. Day. presi-
dent OF the Equitable Life Assurance So
ciety. Interests closely connected with
Gen. du Pont announced that the Gen
eral would be in New York again on
Wednesday and that ii was practically
certain that or that day he would per-
sonally give out a statement telling in
oetail just what his plans were in pur-
chasing the Equitable stock and what
he intended to do with 1t.
The same interests stated that IL was
probable that Gen. du Point would max
his proposition Of naturalization to the
policyholders OF the company previous to
the annual meeting, which occurs in De-
Cember. Questioned as TO whether the
dissolution of the voting trust was immi-
rent the reply was that IL could not be
considered so. but might take place be-
fOle December.
Insurance Authorities' Position.
At the Office OF the Insurance Depart
n'ent OF the State of New York at l65
Broadway the following statement was
given out by Supt. Frank Hasbrouck
The sale of the stock control OF the
Equitable Life Assurance Society by the
Morgan estate TO Gen. du Pont Is a pri-
vate transaction over which the depart
nent has no control.
The department. however. has full
authority which would enable IL TO pro-
tect fully the rights of the p~ollcyholders
A majority OF the present board OF direc-
tors represent the policyholders. and the
supervisory powers OF the department
are such that no radical change could
be made in the centrol or MANAGEMENT
OF the society without our knowledge
Assurance has been given to the de-
partment that the voting trust which
las been in effect for some years will
continue undisturbed. We are also as
kured that Gen. du POM is entirely will
Ing to bring about a complete mutualiza-
ton OF the company. and the committee
on naturalization OF the Equitable will
take up the matters with Gen. du Pom
ct an early date.
We are informed tina at the time OF
the purchase OF the stock from the Nor
gan estate Gen. du Pont agreed to resell
the stock to the Equitable society at any
time within three years at cost plus In
terest.
THE Insurance Department has jus,
completed its regular %triennial examina-
tor of the society's affairs and the re-
port will be filed shortly. The society
u in sound condition financially and its
methods of management, expenses and
earnings have been greatly improved in
recent years"
Supt. Hasbrouck stated that he had
assurances from Gen. du font or MS
agents that the voting trust would be
continued. On this score, however
there seems to be somewhat of a differ
ence of opinion between the State Insur-
ance Department. Gen. du Pont and
william A.. Day. president of the Equi-
table. Gen. du Pont has stated that he
Intends to give the company complies
naturalization. II such q plan were car
ried out II would necessitate the sale OF
the stock to the pulicyholders and the
dissolution OF the voting trust.
One factor which might to a con.
siderable extent hinde the sale of the
stock bought from Mr.. Morgan by Gen
du Pont 10 the policyholders OF the
company is that the State Insurance De.
partment might feel that II would leave
the society with too small a surplus
Gen. du Pont is understood to have paid
in excess OF $4,000, 900 for the Morgan
stock. At present the Equitable LII.
Assurance Society's total surplus re
serves are $685. al 1855. OF this amount
however. sl2,2S7,757 is for distribution
10 policyholders In 1915. s62.l48, s65 /.
held awaiting a~pportionment upon de
terred dividend pnliries nd u,,,st ha Ate