The Montgomery advertiser., 1905-09-20

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 considerable amounts of it's stock MT.
 HydeIwas also President of this soci-
 ety, as stated: MT. Fitzgerald was l President of the Mercantile Trust Corn- | pany and a director of the Society and | chairman of it's finance ccmmittee: Mfr. l Hartley was also q director of this so- ciety and member of its finance com mittee.'i' A4 fs s ss
 It developed soon after the Mercan- tile Trust Company assumed the loans, MT. Morton reports, that the collateral for the loan to John ". Young was worthless and then it was that enor-
 nous sums were spent in an effort to i develop the Kentucky and Colorado properties On July i, 1905. the cost of the Kentucky property stood at ss1s.- e67 and the cost of the Colorado prop erty at $2.s09.633. The cost of the Col orado property was assumed by the Commercial Trust Company to the ex- tent of s5o0,o0o by the Western Nation al Bank. (now the National Bank of Commerce) to the extent of $200.000. and by the American Deposit and Loan Company (now. the Equitable Trust Company to the extent of s1o0.000 on certificates of participation issued to them respectively by the Mercantile Trust Company on January 23, 1900. and agreements were executed by Tur- ner and the guarantors or their repre- sentatives consenting to the issue of the certificates and agreeing that the collateral should apply to them equally with tho notes held by the Mercantile Trust Company. The Turner loans were made by the Mercantile Trust Company in 1894, but Mir. Morton finds that the records of the Equitable Life Assurance Society contain no reference .sf kr4 fN ha
 For society's Benefit.
 sThe Mercantile Trust Company, however" said MT. Morton, .has pro- duced an instrument signed by James ". Alexander, President, dated May Il, fsso., about week after the death of Henry 3. Hyde. certifying that the Fur ner loan and additional advances for the same account were really made for the benefit of the Society, as 1t was the principal isharehoider of the Western Ma tfonai. Bank and was practically pledged for its protection. On February 6, 1900. over five years after the guaranteers had incurred their obligation to the trust company, President Alexander ad- dressed letter to each of the afore- mentioned individual guarantors. or their representatives, stating that the Turner loans were made by the Mer- cantile Trust Company at the request of the Society and that it was at the request of the Society that the indi- viduaI Euarantors guaranteed the trust company against loss. and. therefore. the Society would hold them. the guar antors, harmless from loss on account of their guaranty. On February 14, 1900, the Executive Committee of the Society passed q resolution authorizing the president to convey to the individ- ual Ruarantors the assurances of the Society for their protection. This res olution is the only minute on the re- cords of any committee of the Society or its Board of Directors in respect to any connection of the Society with the Turner loans.
 'February 14. 1900. the president of the society, Mir. Alexander, also wrote tioned corporations holding certificates of participation in the Turner loans, repeating that those loans were made in the interest of the society and assur- Ing them that the society would see that ths amounts kheir companies loan ed would be repaid <.s s
 'sks soon aa became aware of the facts in regard to this transaction re- ferred the matter to Wallace MacF,ar- lane, special counsel. to ascertain what the societys legal responsibility was in the case and he gives me as his opinion that the Mercantile Trust Com pany should look to it's guarantors for the payment of the obligation and that the society is in no sense responsible to the trust company and in his opinion 1t Is very doubtful whether the society Is liable to the guarantors.
 Litiwation Necessary.
 This however. is a matter that can only be settled by litigation. have notified the Mercantile Trust Company to this effect and have urged that it proceed against its guarantors. I have also notified the trust company that we would expect to have repaid to the society $71s.2et and interest which find the society has applied on these take the necessary proceedings for the recovery of this money.
 'I have been unable to form a definite opinion as to the value of the properties by which the Turner loans are secured. They certainly have substantial value and the officers of the Mercantile Trust Company are sanguine that they will ultimately produce sufficient money for the liquidation of the loans. In any event the individual guarantors of the loans, including the estates of Henry B. Hyde and Marcellus Hartley, are amply responsible and the trust com pany, by enforcing It's rights against them, should be able to escape ultimate loss on the loan"
 Coming upon the mysterious 16s5, ,o0o loan made by the Mercantile Trust Company on the "J. W. A. No. 3 Ac- count. Mir. Morton found that no such loan had been authorised by the society and repudiated 1t. The 'J. W. A. No. Account" loan was repaid recently by individuals. Mr. Morton discover ed, however, that from 1901 to 1904 the Equitable paid Sss5. 900 on this loan and he has instructed counsel to take the necessary proceedings to recover these amounts for the society"
 The Searles loan was originally S34O,- poo and was reduced to $ss,oo0. The collateral on this loan, MT. Morton finds, is without value.
 BoIIer's Fatal ExpIoaton.
 New York. Sept. 1e.-Five men ware | .eriously injured. and one. Patrick