The Ladysmith news and Ingram news. [volume] (Ladysmith, Wis.) 1905-1906, 1905-09-23
CASH ENTRIES IN RECORDS IN
RESPECT TO THEM ARE VERY
OBSCURE.
START SUITS FOR THOUSANDS
INSURANCE COMPANY WILL SEEK
TO RECOVER FUNDS LILLE
GALLY LOANED.

|
/ table Life Assurance society paid out
| $218,264 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 So
ciety disclose, became known yester-
| day when Paul Morton, president of
| the society, made public a report on
| the subject submitted by him to the
society's directors.
These transactions occurred in what
Mr.. Morton referst to as "the Turner
| loans" The Turner loan," Mr.. Nor
toms 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 a
bank examiner and Henry B. Hyde
then agreed to transfer the loan and
collateral to the Mercantile Trust COM
pany.
Loan Grows Larger.
At that time, apparently, the loans
amounted to 1861, 491. George V.
Turner. in whose name the loan stood
was secretary to Louis Fitzgerald,
then president of the Mercantile Trust
company, and a close business assocl-
ate of Henry B. Hyde. The loan was
guaranteed by Marcellus Hartley, John
E. Searles, Louis Fitzgerald, w. n.
Color, Jr., and H. B. Hyde.
On March 81, 1895, the same guar
antors renewed their guaranty, the
loan having grown to $1,276,478, the
increase being due to attempts to de-
velop the property on which the col
lateral for the loan was made.
The Equitable Life Assurance soci-
ETY. paid the Mercantile Trust COM
pany $218,264 on these loans on Jan.
$1,000. and 100000 more on Feb. 4,
1904.
Authority Is Lacking.
''The records of the society,"" said
Mr.. Morton. disclose no authority
whatever for these payments and the
cash entries in respect to them were
very obscure.
Mr.. Morton also sets forth that on
Feb. IA, 1900, the executive committee
of the Equitable Life Assurance socie>
ty passed a resolution authorizing the
president to convey to the individual
guarantors of the Turner loans the as
surance of the society for their pro-
lection On Feb. IA, 1900, the presi-
dent of the society, Mr.. Alexander,
made a statement that these loans
were made in the interest of the socie-
ty and assured the guarantors that the
society would see that the amounts
their companies loaned would be re-
paid with interest.
Mr.. Morton referred the matter to
special counsel, who have assured him
that the Equitable Life Assurance So
ciety is
Not Responsible for the Loans.
Mr.. Morton has also notified the
Mercantile Trust company that he
will expect it to repay the $218,264
paid to it by the Equitable Life Assur-
ance society.
Mr. Morton found that $265,000 was
paid bv the Equitable Life Assurance
society to the Mercantile Trust COM
pany on the $6S5,000 loan, the nature
of which loan has never been ex-
planned. Counsel have been instructed
to begin proceedings for the return of
this sum- This loan was carried on
an account known as the 81. w. A. No.
81 account. Mr.. Morton also reported
to the directors that it would be nee
essary to charge off $S6,48S unpaid
balance of loan to John E. Searles,
who had gone through bankruptcy.
The collateral against this $685.
Mr. Morton declares, is without value.
At the conclusion of his report Mr..
Morton stated: ''In case any other
transactions of this character are de-
veloped you will be duly advised.