Jasper County Democrat, Volume 12, Number 67, Rensselaer, Jasper County, 4 December 1909 — EQUITABLE IS IN MORGAN’S HANDS [ARTICLE]

EQUITABLE IS IN MORGAN’S HANDS

Financier Buys Stock Control of Richest Insurance Concern.

RYAN HOLDINGS ARE ACQUIRED Historic 502 Shares Which Retiring Millionaire Bought From James Hazen Hyde For $2,500,000 During the Famous Probe Into Organization’s Workings Become the Property of Money King. New York, Dec. 3. —J. Pierpont Morgan has bought stock control in the Equitable Life Assurance society. The transaction conveys to him all of the stock owned by Thomas F. Ryan, including the 502 shades bought by Ryan from James Hazen Hyde in June, 1905, at the height of the internal dissentions in the company and the disclosures of the financial transactions of various of the managers and trustees. The 502 shares formerly owned by Hyde alone carry stock control, the total capitalization being SIOO,OOO, divided into 1,000 shares of SIOO par value. Morgan’s purchase is made subject to the deed of trust made by Ryan tn Grover Cleveland, Morgan J. O’Brien and George Westlnghouse as trustees of the stock held by him. This deed of trust was executed June 15, 1905, and ran for a period of five years, so that it does not expire until next June. According to its terms the trustees may renew the agreement for five years on the expiration of the original agreement. Ryan has been at his Virginia place, Oakrldge, for several days and no statement as to his reasons for selling control of the stock was obtainable at his office here, or from his attorneys. On behalf of Morgan, the following statement, given out at his office, was all that was officially said: Harrlman Aides Made Directors. “Mr. Morgan has bought the majority of the stock of the Equitable Life Assurance society, formerly owned by Thomas F. Ryan. This purchase is subject to the trust under which Grover Cleveland, Morgan J. O’Brien and George Westlnghouse were made voting trustees, for the benefit of policyholders and it covers all Mr. Ryan’s In terest, including all the stocks purchased by him from James H. Hyde ’* Ryan paid $2,500,000 for the Hyde holding, though the dividend on the stock is limited to 7 per cent per annum, or in 502 shares to an annual income of but $3,614. The amount that Morgan paid for these holdings could not be learned. At the annual meeting of the Equitable Henry W. De Forest and Robert Goelet were elected as directors. Their election attracted attention in the financial district for the reason that both have long been regarded as members of the Harriman party, Goelet being a member of some of the boards of the so-called Harriman railroads and De Forest, who is attorney for the Harriman estate, having been chosen Harriman’s successor on several boards. Fight Over Hyde Stock Recalled. It was in the course of a sharp strife with Harriman and much against the latter’s wishes that Ryan secured the so thatahe election of De Forest and Goelet was regarded as unusual. It was surmised that Harriman might have secured the Ryan holdings and that the election of the new trustees might have been made at the instance of the Harriman estate before the completion of the sale to Morgan. On this phase of the transaction, De Forest refused to comment. In regard to his own election, he said that he was nominated six months’ ago in the regular course as a trustee representing the policyholders. Although the transaction does not involve as great an amount of money .as others in recent years, this transfer of stock control is one of the most important matters of finance since the panic. The society is the wealthiest of the insurance organizations. The outside Insurance written by the company amounted at the date of the last report to $1,326,478,540. It had then a surplus of $81,267,467, a general insurance reserve of $385,152,880, and total assets of $472,339,509.