The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-09-22

New York, September 19.-That the
Equitable Life Assurance society paid
out $218,2G4 20 the Mercantile Trusr
Company, in connection with certain
loans known as THE Turner Loans"
n that these payments were with
out authority, SO far as the records Of
the society d~iscloses, became known
today when Paul Morton, president OF
the society, made public a report on
the subject submitted by him to the
s0cietys directors. These transactions
occurred in what Mr.. Morton refers to
as the Turner Loans" These. Nj.
Morton,s report sets forth, were car
rled in 1894 by Western National Bank
which was controlled by the Equitable
Lie Assurance Society. The collateral
for the loans was objected to nv q
Dank examiner, n Henry B. Hyde.
then agreed to transfer the oar and
collateral to the Mercantile Trust
Company. At that time apparently.
the loans amounted to S661 ,491. George
v. Turner, in whose name the loan
stood, was secretary to Louis Fitzger-
aid, w. N. Coler, Jr., and H. B. Hyde.
On March 21, 1898, the same guaran-
tiers renewed their guaranty, the loan
having grown to $1,276,478 s, the in
crease being due to attempts to deyel-
op the property on which the collat-
eraI for the loan was made. PART of
this collateral was given by John w.
Young, and consisted of Salt Lake and
Eastern Railway Stock and other Salt
Lake stocks. This collateral proved to
be OF little value. Other collateral
consisted Of contracts of the Kentucky
Mineral and Timber Company, and the
Amity Land and Corrigation Company
OF Colorado. Attempts were made to
develop the Kentucky property and the
Colorado property and large sums
were expended for that purpose, and
by July l, 1905, the cost of the Ken
lucky property stood at $619, OCT, and
the Colorado property at $2,8O9, G333
The Equitable Life Assurance Society
paid the Mercantile Trust Company
S21S,264 Oh these loans on January %,
1900 and 100000 on February 4, 1901.
"The records of the society," said
Mr.. Morton, disclose no authority
whatever for these payments, and the
cash entries in respect to them were
very obscure" Mr.. Morton also sets
forth that on February IA, 1900, the
executive committee of the Equitable
Life Assurance society passed a reSo-
tuition authorizing the president to
convey to the individual guaranteers
of the Turner loans the assurances of
the society for their projections. On
February IA, 1900 the president of the
society, Mr. Alexander, made a state
ment that these loans were made in
the interest of the society, and so as
sured the g%uaranteers that the society
would see that the amounts their COM
pany loaned would be repaid with in
terest. Mr.. Morton referred the mat
ter to special counsel, who have as
Sured him that the Equitable Life AS
surance Society is not responsible for
the loans. Mr.. Morton had also mott
fed the Mercantile Trust Company
that he will expect it to repay the
S718,264 paid to it by the Equitable
Life Assurance Society.
Mr.. Morton found that $265, 900 was
paid by the Equitable Life Assurance
Society to the Mercantile Trust Com
pany on the $685. 900 loan, the nature
of which loan has never been explain
ed. Counsel have been instructed to
begin proceedings for tehe return OF
this sum. This loan was carried on
an account known as the -. w. A. No.
5 account" Mr.. Morton also reported
to the directors that it would be neces-
sary to charge off sS6,4SS unpaid bal
ance Of a loan to John E. Searles who
has gone through bankruptcy. The
collateral against this, S86,4SS, Mr..
Morton declared is without value.