The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-03
WHERE THE $ss5,o0o WENT.
PART TO CAMPAIGN FUNDS; PART
FOR EQUITABLE. STOCK.

hut Larger sums Went in Ways Not Yet Re
yesied Armstrong Committee Get,
Together and Calls jerome Into Con
suitation--No Lawyer Is Chosen
Some of the uses Of the Sss5 900 blino
loan carried on the books OF the Mercantile
Trust Company in the names OF james
W. Alexander and Thomas d. Jordan
then Equitable officers. as trustees. are
known.
Part OF the money was used In acquir-
ing eighty mine shares OF Equitable stock
bought from time to time In small blocks
from various holders who we're regarded
as hostile to the old management OF the
society; some OF II went in settling suits
threatened by policyholders to compel
a distribution of the society's surplus and
other actions in the trial Of which the
methods OF conducting the Equit ble's
business under the old regime would have
been disclosed, and some Of the money
was used as contributions to the cam
paign funds Of both parties.
These are by no means the only channels
throug Oh which tho $685., 900 trickled away.
Other individual channels. broader and
deeper, existed, and, although every effort
is being made to hide them, 1t was pre-
doted yesterday that they would be dis
closed before long.
II the Equitable society was a party to
the loan transaction the purchase on it's
account Of any Of the society's stock, II
was declared yesterday, was illegal. To
use the poicyholders' money in the pur-
chase OF its own stock the society would
first have to have a law passed by the
Legislature authorizing the act.
The Joint note given by Alexander and
Jordan to cover the loan was indorsed by
James Fl. Hyde as vice-president Of the
society, but President Paul Morton re-
pudated any responsibility on the part Of
the society. and the note was taken up by
q person whose name has not yet been dis
closed
The man who paid the note; it was said
yesterday, acquired the eighty nine shares
OF stock that had been bought on the loan
account. The State Banking Department
record Of all the payments made on the
information regarding any phase OF the
.ransa ction has been denied.
1t was remarked yesterday that Thomas
D. Jordan Ia one Of the few directors men,
toned in the Hendricks report as having
qualified through the actual ownership
down as the owner OF ten shares Of the
Equitable's capital stock. Mr.. Alexander
also ia down as a stakeholder.
The State Superintendent reports that
four of the old directors, James B. Forgan,
Henry r. Winthrop, Bradish johnson and
and Jordan stock. Five shares OF the stock
which Jordan had was transferred recently
on the societys books to Paul Morton.
No details we're obtainable yesterday
In regard to the campaign contributions
excent that they we're made to both parties.
Why said man who knows all about
the loan, that matter Of political contribu-
tons il nothing to get excited over. Every
body understands that such contributions
are made by big corporations and there is
nothing extraordinary about this instance.
As the first step in it's investigation OF
Joint legislative committee held an hours
conference with Mr.. jerome yesterday
The committee met the District Attorney
at Its afternoon session in Attorney General
Mayors Office. at q William street. Mr..
Jerome came before the committee in re-
Senator William W. Armstrong. The COM
mittee, according to Chairman Armstrong,
desired to have the benefit of Mr.. Jerome's
study of the Frick and Hendricks reports,
and also to get his advice as to the best
methods Of procedure. Mr.. jerome told
end Of the Equitable scandal, that, although
he had found plenty Of evidence Of moral
obliquity in his study OF the material before
him. he had not yet reached any definite
conclusion to bring a criminal action.
The committeeman also discussed with
the District Attorney the selection Of coun-
sel for the committee Chairman Arm
strong announced afterward that no selec-
ton had been made and that probably none
will be made for several days. There are,
he said several names under consideration.
know that Joseph H. Choate Frank s. Black
and possibly Senator Prackett are among
those under consideration A member OF
the committee said that Mr.. Choate had not
been approached and that 1t was not known
whether he would accept the place II 1t were
offered to him.
The members Of the committee will start
out on a. still hunt right away and then
get together in few days and make q Sc
lection. Charles E. Hughes, who con-
Quoted the gas investigation. and whose
the place. is in Europe and won't be back
until September. Mr.. Jerome, 1t was said
yesterday. is a great admirer Of Mr.. Hughes
and when his advice was asked in regard to
counsel he probably put In a good word
for him.
CIdiIHldH Armstrong IEaue tDB St8te-
ment after the conference with Mr. jerome:
MIR. Jerome was invited to confer with
the committee because we desired to have
him offer any suggestions that he might
desire to make In Albany when we
effected our preliminary organization, We
consulted with the Attorney General. and
we deemed 1t proper upon our arrival In
New York to get the views Of the District
Attorney. We have agreed to cooperate
with each other in every way that We can,
and the same understanding Is also in effect
between the Attorney General and the
committee"
Senator Armstrong said that it would
probably take the counsel for the COM
rnittee two or three weeks to familiarize
himself with the present evidence in the
Equitabl Investigations and that the COM
mittee's regular sessions would begin about
Sept. /.
OF the choice Of counsel for the committee
Mr.. Armstrong said:
What we want is a lawyer Of ability,
with the confidence of the public and
without any political bias or business in
terests prejudical to this inquiry. Such
man is not 80 easy to select"
The committee has selected the Alder
mems room in the City Hall as the place
in which it will hold its meetings. The