Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1905-09-27

New York, Sept. 20.-That the Equit-
able Life Assurance society paid out
$21S,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
oans" This Turner loan" Morton's
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
col. ateral to the Mercantile Trust
company. 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 Mer-
camille Trust company and close
business associate of Henry B. Hyde.
The loan was guaranteed by Marcel
lus Hartley, John f. Searles, Louis
Fitzgerald, w. n. Coler, Jr., and H. B.
Hyde. March 81. 1895, the same
guaranteers renewed their guaranty,
the loan having grown to s127G.47S.
the increase being due to attempts TO
develop property on which the collat-
eral for the loan was made Part Of
this collateral was given by John w
Young and consisted of the Salt Lake
railway, which proved TO be of
little value Other collaterals con.
sisted of contracts of the Kentucky
Mineral & Timber company and the
Amity Land & Irrigation company of
Colorado. Attempts were made to
develop both these properties and
large sums were expended for that
purpose, and by July /, 1905, the cost
of the kentucky property stood at
s619.067 and of the Colorado property
at S2,SO9, 633. The Equitable paid the
Mercantile Trust $21S,264 on these
loans January %, 1900, and 100000
February 4, o. 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 IA. 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 dav the president of
the society. ~ 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 Fespon-
sib1e for the loans. Mr.. Morton has
also notified the Mercantile Trust com
! pany that he will expect Il 70 repay
the s71s264 paid 1t by the Equitable
Mr. Morton found that $3.50 was
paid by the Equitable to the Mercan.
tile Trust on the s6s5,O0O loan. the
nature of which loan has never been
explained The counsel has been in
structed to Segin proceedings for the
return of this sYr Mr.. Morton also
reported to the directors that ii would
be necessary to charge off the sSs.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.