The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-21
THAT $ss5,ooo LOAN PAID.
CROSSED OFF THE MERCANTILE
TRUST COMPANY hooks. .,

ARCoA JO.UThN1 bOOEhC'
VINO Paid II IL Puzzle. but No One Thinks
That Alexander and Jordan, In whose
Names II stood, Paid Aii-Morton
u Pleased ut Legislative Inquiry.
That sess, 900 blind loan made by the Nor
camille Trust Company to James W. Alex
ander and Thomas d. Jordan, then officers
Of the Equitable Life Assurance Society. as
trustees. has been taken up. TO all appear
anoes, Mr.. Alexander and Mr. Jordan per-
sonally assumed the obligation and settled
II.
Bank Examiner A. G. Judson, who for two
days has been making search for q record
Of tho loan In connection WITH his regular
semi-annual examination Of the trust oom-
pany's affairs, announced yesterday that
no suoh loan Is included at present among
the Mercantile's assets, and later State
Superintendent Of Banking F. D. Kilburn
announced formally In Albany that the'loan
had been cancelled
Supt. K1lburn said he knew q good deal
about the loan. Mr.. Alexander and Mr..
Jordan, he said, stood security for 1t, hav-
ing given their note as trustees for the
amount. Other than this, however, there
was, he said, no security.
Supt. Kilburn said he ordered the note
to be taken up some time ago, and that 1t
was taken up on July IA by the makers or
on their account His order, was issued
because he believed the loan to be "mi1ed
up" with Equitable affairs.
II James W. Alexander has contributed
equally with Mr.. Jordan to assuming this
obligation, 1t will make more than 100000
that he has returned to tho account OF the
society. He had already turned into the
treasury $4,000, representing the amount
Of bis profits In the james n. Hyde and
Associates underwriting syndicate opera
lions. Mr.. Alexander Is now very al at
Babylon, l.. l., and, according to his friends,
is entirely ignorant Of recent develop
ments in the society. The opinion was
expressed generally In Equitable circles
last night that Mr.. Alexander knew nothing
Of this last move, and that the note had
probably been taken up by his advisers
and the persons to whom he has entrusted
the management Of his affairs.
THE sun told several days ago that the
State authorities had notified the counsel
for the Equitable Society that this loan.
for which the society was paying per cent
INTEREST Wucu IL ACTUALLY hdu oh ~Sf>ootS
in the same trust company large amount
of money for which it was getting only
Q per cent, must be taken up without delay.
That the new management of the society
repudiated all responsibility for the debt
is now obvious, although H. c. Deming
president Of the Mercantile Trust Company,
when testifyfng before State Superintendent
of Insurance Francis Hendricks, said that
he had always considered the Equitable
society responsible for the money.
From the authority quoted above came
the statement published yesterday in The
SUN that some of the persons who had
profited by this blind loan were becoming
thoroughly alarmed and were about ready
to make restitution. 1t was intimated
pretty broadly by some persons familiar
with Mr.. Alexander's affairs last night that
these persons, if they have not already
done 30, will have to come up with the
money before long.
Mr.. Jordan. the deposed comptroller, is
not counted in Equitable circles as a wealthy
man.
One OF Mr.. Ale1ander's counsel. when
questioned last night in regard to the
taking UP Of the loan. said:
you will have to excuse me. am not at
liberty to say anything about that
Here is Bank Examiner Judson's state
ment:
my investigation Of the Mercantile
Trust Company shows that no loan OF
$685., 900 stands to-day on the books OF the
company against either Mr.: Alexander
and Mr. Jordan or the Equitable Life As
surance Society. have concluded the
ex animation OF the assets and have nearly
i - ,sv1nN tNva NJ hkak ut h lac
and find that the company Is In first class
shape.
this il one, do not disclose transactions of
any company which have been closed up,
II I were to undertake to trace every loan
get through examining any given company,
to say nothing Of examining all the COM
nanies with which the department has to do.
There is. therefore. nothing in this e1,
animation to show whether such loan had
been made by the Mercantile Trust Com
pany and Cancelled.
An examination for the purpose Of trac-
ing the loan would have to be ordered by
Supt Kilburn, and no such examination,
il vas said yesterday, hos been ordered.
An effort was made 70 nhd on. IRON - p, y.
Company, what had become OF the loan
and whether 1t had ever appeared on the
trust company's books. He refused TO say
anything-on advice OF counsel, ne SAID
marks were construed to mean that there
was absolutely no record Of the loan on the
Mercantile's books, but Mr.. Judson said that
he hadn't intended to. convey that idea,
although it was true that he hadn't 70 nd
any entry regarding the loan.
Mr.. Deming has himself testified s ih; , under e
Mr.. Alexander and Mr.. Jordan as trustees,
and that it has stood on the company's
books for five or six years. averaging be-
tween $500, 900 and $4oo;oOo
all the details in these loan transactions
and to make them public along with other
disclosures which his accountants bring
out is certain. His attitude was EXPRESS ed
in a statement which he issued az soon as
the news of the Governors recommends,
ton for a legislative investigation reached
his office:
Il do not object at all to an official in
vestigation of the life insurance com
panies of the State. The more complete
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