The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-19
EQUITABLE MORTGAGE GRAFT,
FIRE INSURANCE ALL HANDLED
BIZ AN OFFICERS son.

So Broker TAnenbAnm Writes to the Ff1ct
COmmittee-1homss d. Jordan. Whom
He Accuses. Says He's Explained
to NEUTRALITY-SUSPICIOUS. lders Meet,
A letter sent to Chairman H. c. Fricl
Of the Equitabe's seH-investigating com
mittee by Moses Tanen baum, president Of
the firm OF I. Tanenbaum, Sons d Co., fin
insurance brokers. calm Mr. Tricks at.
tention to the fact that the Equitable re-
quires Of persons to whom it makes loan,
on real estate that they shall take out fin
insurance polio es on the properties with g
near relative OF one Of the society's Of
ficers, was made public yesterday.
The near relative referred to is Franz
B. Jordan, the young son OF homas D
Jordan, director and comptroller Of the
society.
Young Mr.. Jordan has an Office on the
seventh floor of the Equitable Building.
charge controls the loan and mortga re
business and indirectly the insuring Of the
mortgag ed properties. The business turned
over each year by Comptroller Jordan to bis
son foots up to a large amount. Not only
this, but the companys entire fire insurance,
which amounts to several millions yearly,
Mr.. Tanenbaum Gays he believes, is mo-
nopolized by the near relative the COM
pany refusing to accept mortgag gee policies
excepting through tits ia ored person.
Chairman Frick has asked Comptroller
Jordan to explain this matter, and Mr..
Jordan says that he has complied with the
request. This circumstance, he said yes
terday, prevented him from talking for
publication. His official explanation could
be had when the Prick committee made its
report. Young Mr.. Jordan admitted that
he did business for the Equitable. 1t was
given to him and he took it; that was all
there was to be said about it at present.
Mr.. Tanenbaum explains in his letter that
Mr.. Prick by Mr., Tricks recent public
request for information from anybody
relative to the Equitable scandal
Mr.. Tanenbaum ASSERTS that the Equitable
for the last four or five years has inserted
in its bond and mortgage contracts a pro-
vision which practically compels the holder
OF the mortgage to procure fire insurance
through an agent or broker of the society's
own selection.
He tells Mr. Prick that at different times
for its clients on properties owned by them,
with the provision that the loss, II any,
became payable to the Equitable Life as
mortgagee, and that these policies were
returned to his firm with letters explaining
that the society refused to accept any
policies except through their own brokers.
Mir. Tanenbaum quotes letter which he
wrote to the Equitable Society asking for
information in regard to the matter, and
also the reply which he received from Ger
aid r. Brown, superintendent Of the depart
ment Of loans and mort cages. In the reply
Mr.. Brown tells the broker that the society
does not furnish copies Of its form OF mort
cages indiscriminat but that those
mort cages in effect are all duly recorded
and open to investigation.
to Chairman Frick. so long as mort gagor
furnishes the inst tuition with a policy or
policies Of fire insurance in reputable COM
panies in amounts sufficient to cover the
amount Of the mortgage the owner should
certainly possess the right to choose his own
charges are borne by him.
Mr.. Tanenbaum asserts that nr4ther the
New York. the Mutual Life nor any pf the
other big insurance companies compel
through their institutions for the benefit
Of the relatives Of the Office g OF the COM
panies. The broker says that he presented
the matter some time ago to prominent
director OF the society, who carried it up
to the officers, Mr., Tanenbaum says that
it was implied then that he was anxious
to look after the fire insurance OF the
Equitable.
such" he says. @is not and never has
been our motive. The sole object OF our
action ia to secure to our clients the right
to name their own broker and place their (!
fire insurance as they see fit, and we neither
seek nor desire to interfere, In any way |
in matters pertaining to the corporate !
affairs Of the Equitable Life Assurance |
Society"
A meeting Of about thirty policyholders
in various insurance companies was held
yesterday afternoon at the Waldorf-As-
toria for the purpose Of organizinga national
poieyholders Rrodtesotiye et assoeial2n The
Conn. lawyers and the most Of the policy
holders who attended were Connecticut
men who are in business in this city. Ex-
Robert E. Pc Forrest, Mark
Agency. John c. Phean of Bridgeport and
several others spoke.
The object OF the proposed organization.
they said, was to assist the policyholder
in the assertion Of his ri gifts both before
the courts and the le5isl it and to watch
panies. A committee composed Of Mr.. De
Forrest. Mr.. Wilbur. j. D. Toomey. Crom-
we'll G. Macy Edward n Norris and John
G. Phelan was appointed to incorporate the
organization in this State and to draft by
laws. They will report at a meeting to be
held in this city next Tuesday.
Letters were sent by the leaders in the
to prominent men all over the
asking for an expression OF opinion
oy them on the feasibility Of the plan. In
,luded among these was Grover Cleveland.
10 reply came from him. Letters were,
however, received from Gov. La Toilette
If Wisconsin, Gov. Folk Of Missouri William
Bryan, Samuel Gompers. John
Mitchell and others indorsing the plan.
Fourth Vice-President W. H. MCINTYRE
vas the only officer Of the Equitable exam
ned yesterday by Deputy Superintendent
Hunter and the Insurance Departments
awyer, Congressman NJ. E. Driscoll Mr..
Mcintyre is Mr.. Hyde's confidential man,
md is said to have been into many OF the
leals with Mr.. Hyde.
Argument was heard yesterday by Justice
Ireenbaum in the Supreme Court on the
notion OF A. Edward Woodruff, appearing
or Herbert G. Tull, for an examination Of
Alexander and Hyde and others Of the
20 uitable directors relative 10 the dummy
directors on the Equitable board Wood
'uff argued that there were only thirteen
u the thirty-eight directors who attended
he meeting at which the amendment TO
he charter was adopted who were qualified
O hold office. All the others, he asserted
we're dummies. Decision was reserved
The statement was made last night that
William Nelson Cromwell had been retained
" President Alexander as one of his
a wyers.
SCHOLARSHIPS FOR NURSES.