Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1905-09-21
LARGE SUMS TAKEN FROM EQUlT
ABLE WITHOUT AUTHORITY
EXPOSED BY PRESIDENT
New Head OF Troubled Insurance So
clety Takes Steps to Recover
Nearly a Million Which Was Hand
ed Over in Deals Made by Hyde
and Alexander,

New York, Sept. 20.-That the Equit-
able Life Assurance society paid out
S21S,264 TO the Mercantile Trust com
pany in connection with certain loans
known as the Turner loans, and
that these payments were without au-
thority, SO far as the records OF the
society disclose, became known yes,
terday when Paul Morton, president
of the society. made public report
on the subject submitted by him to
the societys directors.
These transactions occurred in what
Mr. Morton refers to as the Turner
loans.' This Turner loan, Morton 5
report sets forth, was carried in 1894
by the Western National bank, which
was controlled by the Equitable Life
Assurance society The collateral
for the loans was objected TO by 4
bank examiner and Henry b, Hyde
then agreed to transfer the loan and
col ateral to the Mercantile Trust
company At that time, apparently,
The loans amounted to $661, AL
George V Turner in whose name the
loan stood, was secretary to Louis
Fitzgerald, then president of the Mer-
camille Trust company and a close
business associate of Henry b. Hyde.
The loan was guaranteed by Marcel
us Hartley. John f. Searles, Louis
fitzgerald. w n. Coler. Jr., and II, B..
Hyde March q, 1895, the same
euaranteers renewed their guaranty,
the loan having grown to 81 2164I !,
the increase being due to attempts 70
Cevelop property on which the collat-
cral for the loan was made Pa ot
this collateral was given by John ".
ioung and consisted of the Salt Lal 9
,ailway, which proved to b" OF
little value, Other collateraIs con.
sisted of contracts of the kcatucl Y
Mineral & Timber company and the
unity Land & Irrigation Compan% Ct
Colorado. Attempts were made -
develop both these properties ar !
'arge sums were expended for th3t
purpose and by July !, 1905, the cost
of the Kentucky property stood ot
S619,067 and of the Colorado prOpertV
ut $2,S09.633 The Equitable pa,l tn :
Mercantile Trust $21S,264 on the >
loans January %, 1900, and $500, 900
February A. 1904. The records of
the society" said Mr.. Morton, dis
close no authority whatever for these
payments and the cash entries in re-
spect to them were very obscure"
Mr.. Morton also sets forth that Feb
ruary A. 1900, the executive commit
tee of the Equitable authorized the
president to convey the individual
guarantors of the Turner loans assur-
ance of the society for their protec-
ton The same day the president Of
the society. Mr.. Alexander, made a
statement that these loans were made
in the interest of the society and as
sured the guarantors that the society
would see that the amounts their
companies loaned would be repaid
with interest
Mr. Morton referred the matter to
special counsel, who have assured
him that the Equitable is not respon.
sible for the loans. Mr., Morton has
also notified the Mercantile Trust com
pany that he will expect II to repay
the $71S,264 paid it by the Equitable.
Mr. Morton found that $265,OO0 was
paid by the Equitable to the Mercan,
tile Trust on the $685.. 900 loan. the
nature of which loan has never been
explained. The counsel has been in
structed to begin proceedings for the
return of this sum. Mr. Morton also
reported to the directors that il would
be necessary to charge off the SS6.4SS
unpaid balance of the loan to John f
Searles, who has gone through bank.
ruptcy The collateral against this
loan Mr. Morton declares is va,ueless.