Evening journal., 1917-07-23

D. Morton of New York, and John D.
Kersan, Of Utica. The Equitable charter
requires the society TO do business on
the mutual pIanu, although It has a
capital stock Of 100000 divided into
] 900 shares, par valueSl0 o.
General DUPONT purchased tho con-
trolling stock Of the society from J. p.
Morgan in June, 1915, for S4,3o4 $40.
With interest added this aggregates
now S4,s0O,OOO. When he purchased tho
stock. General DUPONT stated In a COM
munication
"My desire is that the naturalization
Of tho society be brought about, in or
der 10 give assurance that its affairs
will always be managed in the interest
of the polcyholders, fears relating 20
stock control being forever ended. For
] believe that such assurance is neces-
sary if the society is 10 be brought to
the larger success which seems to be
within its reach"
Judge Days statement said Chair
man Spratt and the naturalization
Committee Immediately opened nego-
tiations with General DUPONT. which
have resulted in the plan now ap-
proved by the directors and which
must also be approved by the stock
holders. the policy holders and the
State superintendent Of insurance"
Shorn OF details. the main features
OF the plan arc given as follows:
General DUPONT carried out his
promise to cooperate in placing the
policy holders in control OF the stock
Of the society by Offering them his
holdings OF 564 shares at approx
mately $1,000 600 less than they cost
him. plus interest. His offer aggre-
gates S2799 500 and includes IN ad-
dition 20 the control stock; SO shares
OF minority stock at 81 500 per share
From the date he acquired the stock
he has held the opinion that he could
render no greater service to the pub
lie than to assist in the mutualiza-
tion Of the society and gives practical
and substantial expression to this
view by contributing this amount In
the interests OF naturalization"
As 10 the payment for the stock
Judge Days announcement said: "Th'
transaction with General DUPONT will
not involve fiat cash payment by
the society The payment will b'
made in semi-annual installments
covering a period Of twenty years. by
deducting the amount Of such install
ments which include interest on de
ferred payments. from the semi-an
nual interest payments TO the society
on the mortgage OF S20.500.O0 which
/ n holds on the Equitable Office build
ing 6f which General DUPONT is thl
/ chief owner. Thus the desire Of th'
board and OF the superintendent o
/ insurance in mutuallzing plan t'
avoid making any substatial reduc
tlon in the working surplus Of the so
ciety. or 70 make any appreciable in
crease in tho cost Of insurance to pol
lev holders. will be accomplished.
THE society in its desire to dea
with the owners OF the 436 shares o
minority stock has offered a price
which Is beloved 10 be considerNbl,
above the average cost to them o
these shares The price provided for
the 436 shares Of minority stock u
the same as will be paid 70 Genera
dupont for his sixty-three shares o
minority stock. namely, $500 a share
Thus 436 shares will be paid Tor Il
cash and at the price above statel
the amount would aggregate S654OOl
Under the law the society can amen'
, It's charter and quaEfy all policy
/ holders TO vote for directors and thu
practically mutualize the society a
far as the voting by policyholderS
\ concerned through the acquisition
g the majority stock only. It IS b'
i lieved. however. to be for the best II
s forests Of the society that all stock
be purchased and retired and the mt
p tualization thus fully completed
Hence IL suggests price for the min
! ority stock that seems proper and ad
visable IN view Of all existing condi
tons and in the interest OF the promp
lacquisiti0n Of the stock.
Stock Held by Trustees.
As the stock is acquired under thi
plan It. will be assigned 10 these thre
trustees-Dr. John II. Finley. Stat