New-York tribune., 1905-11-06
NEW HENDRICKS REPORT.
4RRAIGNS OLD REGIME.
No Record Of Nature Of s600,00o
Equitable Loan.

loans the records were battling as to ehtall re-
course 10 entirely independent sources OF ihfor-
nation In his report Mr.. Hendricks estahiisheS
a collateral relationship between the Equitable
snd certain leans alleged TO have been mace o"
SIS account by the trust companies
He asserts that the society's books contain
,o record of the nature of the mystic S6pooo
ioan and rsproduces sworn testimony from
Francis w. Jackson. who was auditor OF the
society and Mr. Murray. who was CASHIER oo'h
of whom dlsavowed knowledge of the nature OF
Ire ;oan
r. H. Hunter. Deputy Superintendent OF IN
surance. and Isaac Vanderpoel, chief examiner
rake the report which shows the societys con-
dition at the close of business on June 30. ac-
coriing 70 it's books
The report is largely of technical nature
and IS notable for its absence of anything os-
tensibly OF a sensational character
ITS SIGNIFICANCE DISCOUNTED
To all practical intents the report may be said
to deal exclusively with conditions under the
former regime Many OF the conditions referred
20 have been anticipated and modified by Pau
Morton since he assumed the presidency OF the
society thus dscounting the significance OF the
report In his report of September ~, for n
stance. MIR. --ortol treats in detail Of the So
called Turner loans, announcing also that ne
had told the Mercantile Trust Company that the
264 So win interest. which the Equitable had
applied the loans
Mr. Morton likewise urged the Mercantile TO
sue the 'guarantors' of the loans,
Discussing tho real estate Of the society the
report places tho value of its office buildings II
various cities at So6. see 3ss. or S4.99S.634 less
than the sum which they are carried or the
books of the society. Superintendent Hendricks
explains that this reduction is made on the basis
OF the earnings of the buildings. which yield
per cent on S26 366 366 In addition to the book
value of real estate the company has acquired
under foreclosure the report adds S23. 1S9 o',
making the total estimated value of such real
estate s., ,664, $50 % OF the loans on bonds and
mortgage the report says they represent so5,-
T21 ODD 16 and have an average earning OF more
than ~ per cent. and 'at no period of the so
ciety's existence has this class of investments
been in a more satisfactory condition.
LOANS ON POLICIES $25 S65, $50.
The loans made by the company on the Sc
curity OF policies assigned collateral amount
to So, ,S65, $50 30, according to the report, and
the bonds and stocks owned by the society have
a par value of S195. 900. .567. against book
value of S219. 40S, and current market
value on June To- 1905, of S232565562
Cash on deposit at the close of business June
80. 1905. aggregated S29.s79,552 -. OF this
EQUITABLE Trust Company of New-York, S6425-
991 A was deposited with the Mercantile Trust
Company and S5,453.9l1 81 with the National
Bank of Commerce in New-York.
Discussing the debit balances of agents. which
are assigned to trust companies and aggregate
So S13 1sS4 So the report states that they not
considered as admitted assets, and deducted
from the cash on deposit, bringing the amount
down to S24 O66 :367 s.. 1t will be recalled that
or August 80 President Morton announced that
thereafter agents loans would be carried as
society matter.
The report discussed at length the payment Of
$500 coo in the form cf a check drawn by the
society to the Mercantile Trust Company, and
dated February 1. 1904, largely along the lines
of President Morton's report. AS the books of
the society did not show the consideration for
this check the report says it was necessary for
the examiners to consult with the superinten-
dent of banks and look into the accounts Of the
trust company The records of the society
showed that the account involving the S6o00O0
check closed TO profit and loss the
ciety's books December 81 1904 and it
learned that the trust company credited on the
&c. V. Turner loan" most of the money realized
from this check AS this transaction and other
transactions between the Equitable and the
trust companoS do not appear the society's
books, the report states that the collaterals for
such loans are not ir"ie ded in the report
asset, nor are the society's guarantees in such
transactions charged agairst it a liability.
VOUCHER RECORDS BATTLING.
OF the society's records the repor: declares:
In the investigation of other matters, where ii
became necessary to establish the title GER
tain securities of which the society was at least
the custodian, the incomplete and deSultory
nature OF the voucher records or authorizations
tn writing from which book entries connected
with these transactions We're ordered to be
made. so battling to render it practically
impossible to ascertain Through the society tn,
s atus of these securities to ownership.
Computing the assets of the society after
making the deductions noted. the report states
that the admitted assets s406 073. .063 and the
total liabilities estimated at the same
amount IN arriving the total of the liabi-
tiles the total reserve, which includes the pres
ent value of all outstanding policies and annu-
ities is estimated at s33SSs6f2S. and the reserve
for unassigned surplus funds is placed at S62-
o0S.624 Gs.
A table OF interest rates shows that the So
ciety realized the following rates on its assets
on stocks and bonds, 4 :25: rent rate on mean
real estate. 2S7: interest rate on mean net as
sets. 80
Appended to the report are exhibits which in
clude reproduction CT the 100000 check of
February TO the Mercantile Trust Company,
and copies of the guarantees Of officers of the
Equitable 70 the Mercantile Trust Company and
other financial concerns III connection with the
George Y Turner loan A table is also given
which shows in detail the bonds and stocks
cwiied by the society. Copies are also shown
of letters written to trus; companies and banks
b. President Alexander and Vice President q.
T. Tarbeli Of the Equitable. guaranteeing the
renewal interests Of agents of the society and