The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-20
MORTON REMOVES D,JORDAN
FOR REFUSAL TO TELL ABOUT
S6S5, 900 EQUITABLE LOAN.
william A. Day Chosen to Succeed Him rs
Acting Comptro llcr-statc to Sue
/. Directors Collectively for Money
wasted Westinghouse Reform Plan.


Equitable Life Assurance Society. was
eummarlly removed from Office yesterday
by Chairman Paul Morton because he re-
the 1885 coo blind loan standing against
the Equitable society on the books Of the
MERCANTILE Trust Company. The loan
stood in the names Of Mr.. Jordan and James
W. Alexander az trustees until few days
ago. when the State authorities ordered
that it be taken up by the society.
Mr. Jordan is to be succeeded, tempo
rarily at least, by William A. Day, who was
Auditor of the United States Treasury for
four years when Grover Cleveland was
President and who is at present Assistant
Attorney General of the United States.
Chairman Morton, 1t is understood let
Mr. Jordan know more that a week ago that
he desired a statement in detail concern
ing this loan, for which the Equitable So
cl,ty hal for several years been paying
interest at the rate Of per cent when it
actually had on deposit in the trust company
large amount of money for which it was
receiving only per cent, Mr.. Morton, 1t
was said, was thoroughly stirred up by
Supt. Hendricks's statement that he was
unable to find out anything definite in re-
gard to tho Uses to which this money had
been put. Mr. Morton made up his mind
that he would get at the bottom Of the sus-
pcion that has been finding expression
that this loan was merely a blind to cover
such expenditures as fees for lobbying
and moneys paid to settle suits in which the
names of Equitable directors were in
volved, which the officers Of the society
did not wish to have appear on its books
After Chairman Morton made his demand
on the Comptroller for information Mr..
Jordan, it is said, failed to show up at the
Equitable Building for three days, although
Mr.. Morton was looking for him all the time.
When he did return Chairman Morton, it
was said, failed in his efforts to get an inter-
view with him for several days. Finally
when he did meet Mr. Jordan the latter re-
fused to give the desired information.
Jordan has been in the service OF the
Equitable for good many years. He has
been comptroller for almost ten years.
He was receiving salary Of $4,000 a year.
He lie one Of the few directors In the old
board who qualified through actual owner
ship Of five shares Of the society's capital
stock. He is a member of the executive
committee OF the board Of directors, but
will undoubtedly lose his place on that
committee, even II he remains on the
directorate This is regarded as unlikely.
Mr.. Jordan was questioned by Supt.
Hendricks in regard to the loan standing
partly In his name. He testified that
he knew nothing about the purposes
to which the money was put; that he was
In fact. familiar only with the entries con-
corning the loan as they appear on the
books in his office. Mr.. Jordan was natu-
rally regarded as the chief source Of infor-
nation regarding the loan, Mr. Alexander
being 80 ill that he cannot, it is said, be
questioned.
Here is the formal announcement which
Mr.. Morton made in regard to the removal:
T. d. Jordan has been removed as comp
troller OF the Equitable Life Assurance
Society and william A. Day. at present
Assistant Attorney General OF the United
States. has been appointed acting comp
troer. The reason for Mr. Jordan 3 removal
was his refusal to furnish me information
regarding important transactions OF the
society which / am investigating.
Mr.. Jordan left his Office in the Equitable
Building soon after he was notified of his
removal. refusing to say anything for
publication. He lives at So West Eighty
elRntn street, his mouse was cloSeu up
yesterday.
Chairman Paul Morton announced yes
terday that Nevada H. Stranahan, Col
lector of the Port and one Of the newly
elected directors, had declined to serve
owing to press Of official duties which will |
make ii impossible for him to give the time
which he thinks ought to be devoted to
proper service on the board.
Attorney General Mayer is going to bring |
suit against every member of the Equi- |
tables old board OF directors to compel |
an accounting for their management OF
the society's funds That was learned |
yesterday from a man close to the Attorney
General. Every one OF the forty-nine di-
rectors, including those whos have re-
signed, will DO made defendant in an
action by the State and every one will prob
ably have to take the stand and testify.
Not only will Senator Chauncey M. Depew
have an opportunity to explain in court the
loan which the Equitable made to the Depew
Improvement Company and the services
which he rendered to the society in return
for his annual $40 900 retainer, but a chance
will be given to Edward Fl. Hartman,
Jacob II. SchiF and others TO tell on the
stand what they know about the $50 900 600
blind pool in Union Pacific stock and the
Equitable's relation to it. Mr.. Hartman,
1t has been said, refused, when asked by
Supt. Hendricks to testify before him, on
the ground that he was not an officer Of
the Equitable and was no longer in the so
rety's directorate. This, it was said,
would be no excuse In the suit
which the Attorney General is going to
bring.
This general suit against the board OF
directors is probably the only one that will
he brought by the Attorney General at
present. 1t will be possible, it was said, to
recover through decision in this action all
moneys wasted but II suits against indi-
vidual directors are necessary they can be
brought later, after all the evidence has
'een threshed out and the State authorities
rave thorough understanding Of Equitable
'fairs. Actions to compel the retirement
II the accused directors from the board
will also, it was said, BE- held in allegiance
until decision has been handed down in
he suit for an accounting.
Mr.. Mayer was at work on the pa pers in
elii af az in, |