Omaha Daily Bee Newspaper, December 4, 1909, Page 6

OMAHA, SATURDAY, DECE ALPLAN FOR EQUITABLE Control by Morgan Means Change in Organization of Company. RYAN STOCK IS PURCHASED It s Snbject to Voting T Agreement, Which Expires Next it Not Re- newed. June NEW YORK, Dec. 3.—Purchase of the majority of the stock of the Equitable Life Assurance soclety by J. Plerpont Mor- €en, a move of vast import to the financial wor'd because of the virtual passing of control of nearly $5,000,000.000 of assets and the domination of two large trust come panies—is belleved in Wall street today to foreshadow a still more important move- the mutualization of the Equitable The, mutualization phase of the Equitable purchase by Mr. Morgan from Thomas F. Ryan was discussed today, but no def! nite information was obtainable. Former Justice Morgan J. O'Brien, one of the Equitable trustees, declared that the pres- ent mystem whereby the stockholders and poicyholders jofned In the election of directors was not desirable, as the re- sponsibllity of control could not now be fixed either on the stockholders or the polleyholders. “I am sure that a mutualization of the company rwould be to fts interest,” said Mr. O'Brien. Willlam H. Hotchkiss, state superin- tendent of insurance, said today that the subject of complete mutuaiization of the Equitable had been the subject of con- sideration for some months. Control by J. P, Morgan. Control of the .Equitable, was secured oy Thomas)F. Ryan soon after the Insurance l(‘nndn{l of some years ago, has passed to J. Plerpont Morgan with the $472,000000 of assets which the company declared In its last statement Thie transter apart from its magnitude as a chapter in the history of finance, marks a complete reversal of the old order under which the Insurance companies controlled the destinles of the banks and trust com.- panies. News of the transfer was contained in the following brief statement issued from the office of Morgan & Company: “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, Mor- gan, O'Brien and George Westinghouse were made voting trustees for the benefit of policy holders and it covers all M. Ryan's interest, including all the stock purchased by him from James H. Hyde." which No Details of Deal. Beyond these bare facts, Mr. Morgan and his partners declined to give any details. The exact amount of the stock bought b them and the price they paid remain fc subsequent announcement. Nor would they name any other Interests allled with them, although it Is commonly understood in Wall street that at least one large trust company may take a hand in the deal it the consent of the Equitable is obtained. Under the terms of the trust agreement referred to In Mr. Morgan's announcement the Ryan stock could not be sold without the consent of the surviving trustees, whose term of power held until June 15 ment fcr another five years if they, saw next and who might continue the agree- fit. Both of them are very busy men and as they have served the soclety without pay it has long been taken for granted that they would be Willink to pass on their | responsibilities to other shoulders If they 'found they could do so without prejudice to the poliey holders. Prior to confirma: tion of the transfer, neither Mr. West- inghouse nor Mr. O'Brien would discuss either its details or its probabilities. Ryan Buys from Hyde. Mr. Ryan's holdings in the Equitable were bought In large part from James H. Hyde, although Kdward H. Harriman had Jaid plans, which, as he supposed, were to assure him the control which went in- stead to Mr. Ryan. It was during the hearlhgs of the | Armstrong insurance in- vestigation that, Mr. Harriman, when questioned on this point, colned what sub- sequently became a national byword. He was asked If he had settled scores with Mr. Ryan and answered terse’y: “Not yet tultion, “but soon."” At the offices of the Equitable soclety The public added with ready in- President Paul Morton professed ignorance | of the transfer and news of the change of control seemed to come surprise to other officers. It i1 known, as a however, that the directors of the soclety and the principals to the | deal were in eonference yesterday 'and untll Jate today and there In authority for | the statement that the transfer met with | their approval | Voting Trust Still Obtaine. Former Justice Morgan J. O'Brien, one of the surviving trustee: sald tonight in commenting on the purchase of a majority Interest in the soclety by Mr. Morgan “Although Mr. Morgan has become by pur- chase the majority owner, the trustees re tain the voting power of the stock and for | | the present at least we shall continue as | trustees. I know nothing about the transac- tion beyond the fact that Mr. Morgan Has bought a majority interest. What ldea he had in making his purchase I don't know, but from my acquaintance with him in | many other matters, I am sure that the transaction will result to the benefit of all Policyholders.” Paul Morton, president of the Equitable Life Assurance sociely, issued the follow- Ing statement this afternoon: “'As stated by Mr. Morgan, he has bought Mr. Ryan's stock, thereby secufing a ma- jority of the shares of the Equitable Life | Assurance soclety. While Mr. Ryan held these shares his attitude towards the so- clety was In every way commendable, as he did not seek to interfere with the man- agement in the slightest degree. “Under Mr. Morgan's ownership of the majority stocks its affairs will be con- ducted as heretofore by the board of direct- ors, with an eye single to the interests of its policyholders.” Mr. Morton said the question of complete mutualization of the soclety would be taken up in the future with the state su- perintendent of insurance, Couden Before Grand Jury in Warriner Case Man Who Revealed Shortage After Stenographer Quarreled with Miss Ford a Witness. CINCINNATI, O., Dec. 3 — When the grand jury met at 10 o'clock this morning, Prosecuting Attorney Hunt at once took up with it the latest developments in the case of Charles L. Warriner, defaulting treas- urer of the Big Four rallroad. Frank M. Couden, cashier in the United States cus- toms office who, by his own admission, revealed the shortage to the company .in a “purely commercial . transaction,” ten years after he became cognizant of it and a few weeks after Ida Brockway, his stenographer, and Mrs. Jeanette Stewart- ord quarrelled, was before the jury on call of the prosecutor. The voluminous correspondence turned er to the prosecutor by E. 8. Cook, \ade up of hundreds of letters from Mrs. Ford and Warriner, covered twelve years of remarkable relationship was also sub- mitted. The Big Four, according to semi-official announcement, {s trying to find out if thie $325,000 not accounted for by Warriner in his expenditures of the stolen $643,000, 1s hidden. It Is belleved other indictments Wil follow. The Warriner case has cost Ida Brockway, stenographer in the office of Amor Smith, Jr., surveyor of customs, her position. Sur- Veyor Smith has sent to Washington a recommendation for her dlsmissal, which |1t 1s said will be concurred in. i Miss Brockway, who is alleged to be one of the persons who reported the shortage to Cashier Frank Coudon, her immediate superior, has been absent from duty with- |out leave for more than a week. She dis- appeared the day after she was called to the office of Prosecutor Hunt for a confer- ence, FIRST PRESIDENT INDICTED Kentucky Ratlroad Man Gives Bond on Charge of Re- bating. KOUISVILLE, Ky., Dec. 3.—Luclen J Irwin, president of the Loulsville, Hen- derson & - St. Louls raflroad, indicted | Jointly with his road on the charge of re- | bating, gave bond of $,000 in the United States court here today. Interstate Commerce Commission officials say that Mr. Irwin is the first railroad president ever indicted for violation of the interstate commerce law. | paten The entire Surpl of the Well Known Knabe, Hardm Steger & Sons, Fischer, MBER 4 Beginning Saturday HAYDENs THE RELIABLE STORE The Greatest Beginning Saturday HAYDENs THE RELIABLE STORE Most Remarkable Piano Sale Ever Known in Omaha : $60,000 Stock of High Grade Pianos us Schubert Piano Co., Prospective Christmas givers will find here an opportunity for selection from nearly every leading make of high class pianos at prices never before equaled and probably never again to be equaled in this or any oth er store. Many of the pianos are makes of which Hayden Bros. do not have the selling agency, and after this sale cannot be supplied by us at prices quoted or at any other price. There's only one or two of a kind and they will go in most cases at prices far below the actual cost of produc- Included in This Sale You Will Find the following well known and dependable makes: tion. an, Steinw Schuman, - Chickering Bros., Weber, ay, Chickering, Schubert, EMERSON ANGELES, SCHAFFER and many other well known makes in perfect condition and fully guaranteed. At Half and Less Than Half Regular Retail Selling Price Only a few of the many styles and makes can be here illus- trated. Come at once and see the magnificent display of bar- gains. others. Watch papers for in Other Houses Hayden Bros. Guarantee is behind every instrument, insur- ing satisfaction. EASY TERMS will be made on all sales—the easiest you were ever offered and on these remarkable bar- gain prices, too. EAGLE REACHES NICARAGUA Authorities Insist it is Fitted Only for Surveying. PRAIRIE IS STILL ON THE SHOALS ' Cruiser WIill Probably Remain Aground Until Next High Tide ——Zelayn Surprised at Atti- tude of Knox. WASHINGTON, Dec. 3—The United States steamship Eagle has arrived at Bluefields, Nicaragua, according to a dis- recelved at the Navy department today. This vessel is fitted out for surveying and, according to officials at the Navy de- partment, “has not a gun aboard as big as a popgun.” Its wmission to Nicaraguan waters is explained as being for surveying purposes alone. Although the Nicaraguan coast iy very well surveyed, it is desirable, from the standpolnt of navigators, that frequent visits be made, to the coast in or- Specials in Underwear Those $12.50 Qver- coats at 7.45. Don't miss D & Why Pay $12.50?| Tomorrow we will startle the wearing pub- lic with men’s smartest $12.50 qualitied “Protector Collar” Auto OVERCOATS These are not the cheap materialed coats you would expact at the price, but sTappy fancy grays, gray stripes, gray mixtures and olive herringbone stripes. Lined with Italian serge, taflored faultlessly; the large, sweep- ing English “Strand” style you ad- mire so much. Collars change in sev- eral ways—sizes range from 84 to 42. It's the strongest overcoat value of- fered this season—anywhere—by any concern, 1.9 AT ONLY *1.45 Saturday, for Men's $2 and $2.50 Shoes It doesn't make a difference to you HOW the “Palace” secured them —'twas one of those special “buys’ that show a department manager's worth, but the fact remains, nevertheless, that you WILL be able to pur- chase men's all solid leather shoes, in lace or blucher styles, worth $2 and $2.50, at $1.50 per pair. Then, too, there will be a special lot of $3.50 and $4.00 shoes, at $2.50—All leathers and shapes. Note It —Men's $2.50 Shoes, $ 1.50--Men's $4 Shoes, $2.50 Men’s 75¢c wool process underwear, Saturday, garment. .....39¢ Men'’s $1.25 all wool underwear, Saturday, garment . Men's $1.50 double breasted shirt underwear, garment . .0 -59c0 ....89¢ Double Green Trad- ing Stamps with all Sal Saturday der to locate possible obstructions or the position of shifting sands. Zelaya Plans to Keep Power, Driven to desperation by the unexpected and unbending attitude of the United States, President Zelaya 18 now re- ported to have developed & plan Whereby he can resign and at the time retain the reins of power. This con- sists in putiing In the office of president of Nicaragua Jose Madriz, weil known in Central American diplomatic ecircles as Zelaya's henchman and declared to be at Zeleaya's bid and call. The State depart- ment, it is declared, Is entirely cognizant of the conspiracy under way and will act vigorously and promptly if occasion de- mands. In the meantime neither the State depart- ment nor the Nicaraguan legation officials will discuss the advance of diplomatic events. Senor Rodrigues, charge of af- fairs of the legation, insisted tonight that the State department likewise professed to be ignorant of the next move of Presi- dent Zelaya. While the State department has been {acquainted fully with the movement afoot, it I8 not yet prepared to protest. In view of the extremely powerful note addressed to President Zelaya Wednesday through the Nicaraguan representative here, It Is not believed that Zelaya wil attempt extreme methods, In such event any further action | by the United States would be superfluous and the department is marking time. The Nicaraguan situation was not dis- cussed generally before the cabinet at its regular meeting today, but Secretary Knox is understoon to have taken up the subject with the president. No news has been received from Nicara- gua (oday by Senor Felipe Rodriguez, charge d'affaires of the Nicaraguan lega- tlon, who has been glven his passports by this government. Mr. Rodriguez will re- main in this city pending instructions from | Nicaragua. 5 The colller Leonidas was today ordered from Charleston S. C., to Port Limon, Costa Rica. It will take fuel to the crulsers Des Moines and Tacoma and the gunboat Marietta, now off Port Limon. Zelaya is Surprised. MANAGUA, Nicaragua, Dee. 2.—The ac- tion of the American secretary of state in dismissing Senor Fellpe Rodrigues, the Nicaraguan charge d'affaires at Washing- ton, has greatly surprised President Ze. laya, who reiterates today his bellef that the Nicaragua govgrnment was justified in executing the Americans, Groce and Cannon, who were affillated with the revo- lutionists. Zelaya will take no action until he has recelved further Information on | the subject and learns definitely the inten- tions of the United States. The American vice consul, Mr. Caldera, who is & Nicaraguan by birth, but a nat- ! uralized American citizen, is still at the | consulate, atending to his duties. In the | opinion of President Zelaya, Caldera sym- pathizes with the opposition party and a close watch has been kept on him al- though there has been no attempt to re- strain him in any way. Zelaya also ex-| presses the bellef that that in ali proba- bility Consul Caldera’s represantations have shown partiality in favor of the gov- ernment's enemies, PHILADELPHIA, Dec. 3.—The United States transport Prairle, which went ‘aground In the Delaware river thirty-five miles south of this city last night while [enroute to Central America with 700 ma- rines on board, is still fast in the mud and the prospect Is that the vessel will remain there until the next high tide this after- noon. The transport s lylng easy In soft mud and has thus far sustained no dam- | age. There is little wind and the river is smooth A determined effort was made to float |the Prairie at high tide at 4 o'clock this morning, but the three tugs that pulled on The Prairie is in full view of Fort Mott, on the New Jersey side of the river, Fort | Dupont on the Delaware side, and of Dela- | ware City, News of the unsuccesstul efforts of the ‘ it were unable to move the vessel an inch. he had not heard from his government and | tugs was sent to the navy yard by wire- less and the government tug Samoset and four lighters were started for Pea Patch island before daylight. It is expected that Admiral Kimball will have most of the marines taken off and some of the cargo lightered. The marines’ probably will be landed at the two forts. With the ship lightened, the officers aboard feel almost sure that the transport will float on the tlood tide this afternoon. DEATH RECORD. Dr. A. L. Sprague. CRESTON, Ia., Dec. 3.—(Speclal.)—The death of Dr. A. L. Sprague, one of Cres- ton’s well known and ploneer dentists, oc- curred at the family home in this city from a complication of liver and other troubles. For more than twenty years Dr. Spraguc has practiced continuously In this city, up to about a year ago, when {ll health forced him to retire. He was 53 years of age, and widely known in dental circles in this part of the state, His wife and a family of elght children survive him. Miss Florence Runnion. TECUMSEH, Neb, Dec. 3.—(Speclal.)— Miss Florence Runnion, daughter of Ralpn Runnipn, died at the home of her grand- parents, Mr. and Mrs. Warren Runnion, near Bird City, Kan., November 3. She was 13 years of age. The Runnion family was known to many here. The body, ac- companied by the father, reached Tecum- seh this morning. The funeral was held this morning and was conducted by Rev. John H. Wolfe. Percy Vandervoort. Percy Vandervoort, son of the late Paul Vandervoort, dled yesterday in J\'lnsauf | May City. The body will be brought to Omaha for interment in Forest Lawn cemetery The funeral services will be held at 10 o'clock Saturday morning from the E. L Dodder undertaking parlors, Cuming anc Twenty-second streets. Dr. J. H. C. Robinson. SOUTH ST. JOSEPH, Mo, Dee. 3.—Dr. J. H. C. Robinson, president of a local milling company and prominent in politics for many years, as a democrat, died at his home here today, aged 76 years. Mrs. Dorothy Barth. Mrs. Dorothy Barth, 59 years of age, of 32%5 Cuming street, died Thursday night following a brief fliness. The funeral ar- rangements have not been made. YOUNG WIDOW CHARGES FIANCE WITH EMBEZZLEMENT Alleges in Complaint He Decamped with Honeymoon Money She Gave Him, LOS ANGELES, Dec. 3.—After announce- ments for her wedding on December 2 to Arthur Gordon had been published Mrs. E. Miller, a young widow, swore to a warrant yesterday charging hed flance with embezzlement. She alleged that Gor- don had decamped with money she lent formerly lived in Tecumseh and Florence‘him and with which the honeymoon was to have been celebrated. Gordon, who came to Los Angeles sev- eral months ago from Detroit, had the ap- pearance of & man of wealth and refine- ment. Remember it only takes a stroke or two of the pen to mention the fact that you saw the ad in The Bee. Cuul\“il"‘{-"._; one of New York’s largest houses. Vose & Sons Kranich & Bach, Price & Teeple -~ CrieKERING BT FO L% ey o s USRS o) ¥ ¢'.2 Gleaning Up All our Fall and Winter Suitings and Overcoatings. Making ‘em to measure—all $25.00 $28.00 & $30.00 Suitings and Overcoatings For $20 Fine woolens, Splendid qualjty linings good workmanship and a perfect fit guaranteed MacCarthy-Wilson Tailoring Co., 304-306 South 16th St. The paper that goes to the homes brings advertisers the best returns. Luncheon 11:30 to 2 p. m. every day. Sandwiches 20c¢ Doughnuts and Coffee, The busiest and most interest- ing place in Omaha today is The Christmas Fair of the Churches Open 10 a m. to 6 p. m. Court of The Bee Building All kinds of pretty and useful Christmas presents Today First Congregational Lowe Avenue Presbyterian December 6th and 7th First Methodist Church, Clifton Hill Presbyterian EVERY ONE CORDIALLY WELCOME