Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-07-20
Governor of New York
On Insurance Busi-
ness.
No Record of the S685, 900
Alexander-Hyde
Loan.

Albany, July 20.-GOv Higgins this
afternoon sent to the legislature a mes
sage recommending for its considera-
tion the appointment of joint commits
sion to investigate the business of the
life insurance as carried on in this
state.
Result of Scandals.
In calling the attention of the legis-
lature to the insurance matter the gov
crnOr says unfortunately the scandals
recently made public by internal dis
sensions in the Equitable Life Assur-
ance society, and by a comprehensive
investigation of its affairs by the super
intendent of insurance have not with
out just cause aroused a feeling of in
tense alarm, because thousands of our
citizens who have invested their money
in policies of life insurance, and of
thousands of incidents that have been
taught the people to respect New York
companies as safe and secure, while
the business of life insurance as at
present conducted is subjected to state
supervision for the purpose of guar
antceing the sOlvency and fulfillment
of contracts on the part of the CON-
panes, il is evident that evils and
abuses may exist under the law that
earnings whicn should be credited to
the policy holders may be divided to
other purposes, that the expenses of |
operation may be extraVagant and |
wasteful, and that unwise investments |
may be legally made and that trustees
may deal indirectly with trust funds /
for their personal advantage. and that !
such a condition of affairs can exist.
reflects discredit upon the state.
Duty of the state.
The state owes a duty to policy hold
ers and beneficiaries beyond that of |
comparing assets with liabilities and |
permitting companies TO justify their
existence by an exhibition of satisfac-
tory balance sheet and prompt payment
of losses.
Resolutions Presented.
In the senate Senator Armstrong i'm
mediately introduced concurrent res
olution providing for the appointment
of a special joint committee TO under
take the investigation.
No Record of This TranHactiOn.
New York. July 20-There is no
record in any of the books of the Mer-
camille Trust company of the $GS5,oOO
loan to which Horace c. Deming, pres
ident Of that company testified before
Supt. Hendricks as having been car
ried by the company for five or SIX
wears in the names of President James
" Alexander and Controller Thomas
d. Jordan, of the Equitable society
trustees. This announcement was
made today by State Bank Examiner
Judson.
Both houses of the legislature this
afternoon adopted joint resolution
providing for the appointment of spe-
cial committee to investigate the life
insurance companies and appropriated
cot. 900 for expenses.
Jordan III.
New York. July 20.-Thomas ID. Jor-
dan. who has just been removed from
the controllership of the Equitable so
ciety. is reported seriously Ill at MS
home at Englewood, y. j.
Removed by Morton.
New York. July 2O.-Thomas ID. Jor-
dan controller of the Equitable Lie
Assurance society. has been summarily
removed from Office by Chairman Paui
Morton because he refused TO furnish
information regarding that S6S5,ooo
blind loan standing against the Equita-
BILE society on the books of the Mercan-
tile Trust company.
The loan stood in the names OF Jor-
dan and James w Alexander as trus-
tees until a few days ago, when the
state authorities ordered that II be
taken up by the society.
Day Successor.
Jordan is TO be succeeded. temper
arily at least. by William A. Day, who
was the auditor of the United States
treasury for four years when Grover
Cleveland was president. and who at
present is assistant attorney general
OF the United States.
One OF Directors.
Mr. Jordan has been in the service |
of the Equitable for many years. He
was controller almost 10 years He was
receiving salary of $S5 600 a year.
He was one of the few directors of the
old board who qualified through the |
actual ownership of five shares of the
society's capital stock He was a mem |
ber of the executive committee of the |
board Of directors, but undoubtedly win |