The Cairo bulletin., 1905-09-20
Evidence Of Crooked Dealings Of
The Equitable Brought to
Light by Statement of
Paul Morton
UNLAWFUL PAYMENTS
REACHING INTO THE THOUSANDS
WERE MADE TO BANKING
NcERN-RRfNGS SUIT
TO RECOVER THE
MONEY.

New York, Sept. 19.-That the Eqnit-
able Life Assurance Society paid out
s2ls.2G4 to the Mercantile Trust Com.
pany in connection with certain lonas
known as Turner Lonas" and that
these payments were without author
Ilty, so far as the records Of the so-
ciety disclose, became known today
when Paul Morton. president Of the
society. made public the report on the
subject submitted by him 10 the so-
ciety's directors
These transactions occurred in what
Morton refers 10 as The Turner
Loans" This Turner Loan" Morton's
report sets forth was carried In 1894
| by the Western National Bank which
was controlled by the Equitable Life
Assurance Society
Collateral for the loans was object
ed to by hank examiner and Henry
b. Hyde then agreed 10 transfer the
loan and collateral to the Mercantile
Trust Company
At that time. apparently, the ionas
amounted 10 s66l,49l George ".
4. Turner, In whose name the loan stood
| was secretary TO Louis Fitzgerald.
then president of the Mercantile Trust
Company and close business associate
OF Henry B. Hyde.
The loan was guaranteed by Mar
celIua Hartley, John ri Gearles, Louis
| Fitzgerald. w. N. Coler. Jr., Fl. 81.
Hyde. March 81, 1896, the same guar
antors renewed their guaranty, the
loan having grown TO $t,276.47S In
rreases being due to attempts to de-
selop property on which collateral for
the loan was made. Part of this col
! lateral was given by John w Young
, and consisted of the Salt Lake railroad
. which proved to be of little value
Other collateral consisted of con
1 | racts Of the Kentucky Mineral ant
! Timber Company. and Amity Land AMI
r irrigation Company of Colorado. All
q emptg were made to develop botf
4 these properties. and large gums wer'
!. expended for that purpose. and b
July /. 1905. the eost Of the Kentuck,
property stood ut s619,069 and the Col
orado property AT s2.S0g,6a3. Thl
Equitable paid the eMrcantile Trus
n Company $2IS. .264 on these loans Jar
aary 2s, 1900. and 100000 on Febrr
Try 4, 1904
L The records af the society sal
d Morton. disclose no authority wha
! ever for these payments and cas-
S entries in respect to them were yer
g obscure"
i Morton also sets forth that on Eel
y ruary "a, 1900, the executive commi
toe of the Equitable authorized N
4. president to convey the iudlEidus
DS guarantors of the Turner loans assn
"a ance Of the society for their prote
,e ion. The same day the president (
at the seciety Alexander. made stat
Ia ment that these loans were made
II. The interest Of the society and assure
be- The guarantors that the secrefar
would see that the amounts the
companies loaned would be rapal
with interest
Morton referred the matter to
id Especial counsel who has assured hi
that the Enitahle was not responsib
for the loans.
ly Morton has also notified the Merca
ed tile Trust Company he will expect
rs to repay $7lS,264 paid II hy the Ea
n. able
tie Morton found s2G5,000 was paid
In the Equitable to the Mercantile Tri
m. ON the s6S5.ooo loan. The nature
Ter which loan has never been explained
he The counsel has been instructed
his begin proceedings for the return
ey this sum Morton also reported
re. lthe directors 4 would be necessa
OF to charge off sS64SS unpaid balan
Of loan 70 John Il. Searles. who b
gone through bankruptcy collater
against this loan Morton declares
worthless