Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-07-19
Fresh Scandal In the Old Man
agement of the Equitable
Is Rising
OVER HALF MILLION LOAN
Notice Has Been Served on Counsel
!, For tho Equitable That an Explana-
j Zion Of the Loan Of s6s5,ooo From
Mercantile Trust Company Must
/ Be Satisfactorily Accounted For.

New York July ia fresh scand-
al in the old management Oh the
Eouitable Life Assurance Society
looms large in the horizon Of the in
stitution.
Il Notice has been served on counsel
Tor the Equitable by the state author
tiles that the society must take up
that unexplained s6s5,Ooo loan from
the Mercantile Trust company, which
was carried on the company's books
In the names Of James w. Alexander
and Thomas d. Jordan as trustees.
This action was taken by the state
authorities several days ago, and the
management Of the societyeit is UNI
derstood, has given assurance that the
Joan will be Cancelled without delay.
None Of the parties concerned in the
loan would throw any light on it yes
terday further than is contained in
State superintendent Of Insurance
Hendricks investigation testimony.
Mr.. Hendricks Is still at work on the
problem, and so also are Chairman
Paul Morton and Attorney General
Mayer.
The $685., 900 fund carried with it, ac-
cording to the best information, many
features the knowledge Of which has
hitherto been confined to limited cir
Gle OF financiers and politicians.
For instance, it was asked yester-
day: Did the $4,000 which settled the
United States Shipbuilding matter
with one politician come out of this
$685., 900? Did the $4,000 which was
to pay for an ambassadorship to the
French republic come out of this fund ?
That Thomas f. Ryan has agreed to
part with the majority of the Equita-
BILE stock which he bought from James
Hazen Hyde at the price which he
paid for it, s2,5o00o0, whenever the
directors Of the society desire 1t was
verified yesterday by George Westing-
house, one Of the Equitable trustees.
Mr. Westinghouse gave out this state
ment.
son June Is, when the deed OF trust
was signed by Messrs. Cleveland,
OBrien. Ryan and myself, Mr.. Ryan
volunteered the statement that he had
made the purchase Of the stock with
no expectation Of profit and to solve
difficult situation and that he was
determined to convince the public
that he was acting In the interest of
the policy holders. He and Mr. Root,
his counsel, both. assured the trustees
q that meeting that his stock would
be available at cost under any plan
for the acquisition Of the stock by
the society or for the benefit of the
policy holders, and I understand that
he has given written assurance to
the same effect to Chairman Morton
Ct the Equitable board"
Attorney General Meyer was at his
office in this city today working on the
suits which he is to bring this week
against the accused directors. AL
though the attorney general would
make no definite statement as to when
The papers in the action would be filed,
1t is understood that he will be ready
to proceed against them Thursday
The suits to recover the profits wrong
fully made will be brought against the
directors individually, but the action to
compel the guilty ones to retire from
the board will be- general in form.