Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-20
INFORMATION
AND FORMER NAVAL SECRETARY
PROMPTLY BOUNCED HIM.
Assistant United States Attorney Gen
eral Day Appointed to Place and
Assumes Duties at Once
A dispatch from New York last night

marily dismissed from his place as con-
troller. The Information demanded by Mr..
Morton was said by wel-informed persons
to be about the mysterious loan carried by
the Equitable Society with the Mercantile
Trust Company. Mr.. Jordan. with Presi-
dent Alexander. was trustee for that loan
account until recently. when 1t was trans
ferred TO the Equitable Society.
Accountants from the Office of Superin-
tendent Kilborn of the state banking de-
partment are now examining the books of
the Mercantile Trust Company with especial
reference to that account. They are acting
under instructions to ascertain from tie
records Of the trust company every de-
tail Of every transaction in which that ac-
count has figured from the time 1t was
opened until now Superintendent Hen
bricks investigators are looking up the
Equitable records for the same purpose.
Mr.. Hendricks has consulted Gov. >Hig-
gins, who has advised him to use every eff
fort to ascertain the facts about this mys-
terious account. which was supposed to
have been used by the Equitable Society
for such purposes that the charges could
not be entered on it's books. He has been
unsuccessful SO far in getting details about
this loan.
Paul Morton. too. In his reorganization
schemes has been investigating the loan
account and has been almost as unsuccess-
full in learning the details about 1t Su
perntendent Hendricks. He applied to Mr.
Jordon as controller of the society, to
know why the account did not figure in the
Equitable records. He asked Mr.. Jordan
as trustee for that account. to enlighten
him as to the various expenditures entered
in It, Mr.. Jordan refused to say anything
ba,, hxa
Morton discharged him.
William A. Day Appointed.
Mr.. Morton's version of the aaffir fol-
lows:
ct. D. Jordan has been removed as con-
troller Of the Equitable Life Assurance So
ciety, and William A. Day, at present as
sistant attorney general OF the United
States, has been appointed acting con-
troller. The reason for Mr.. Jordan's re-
moval was his refusal to furnish me in
formation regarding important transactions
of the society which l am investigating.
Mr.. Day served four years as auditor OF
the United States Treasury In Mr.. Cleve-
lands first administration. That office Is
one of the largest in the Treasury Depart
ment both in magnitude of its accounts
and the number of its employees. The work
of the bureau was several years in arrears
when Mr.. Cleveland appointed Mr.. Day. Be
fore he surrendered the Office its work had
been brought up to date without any in
crease in force or expense. Mr.. Day was
selected by Attorney General Knox as his
first assistant and under the Attorney Cen
eral had charge of the antitrust litigation
He has, since Mr.. Moody became Attorney
General continued to serve as first assist
ant.
Mr.. Morton and H. C. Deming, president
Of the Mercantile Trust Company, held
long conference about the account. Or
ders have come from the state insurance
department, it was said, that the Equitable
must close it. Nobody would say whether
this had been done or not. Mr. Morton re-
fused to discuss the loan or his action with
regard to Mr.. Jordan beyond his official
statement.
Mr. Deming said that accountants from
the banking department were examining
the books of the Mercantile Trust Com
pany. 1t was not special examination, he
said merely the usual semi annual inspec-
ton of the books made somewhat earlier
than usual. When asked whether 1t would
be possible to examine the books without
going into the loan account" Mr.. Deming
declined to answer, and refused to talk
about that account or the dismissal or Mr.
Jordan.
Suits Against Directors.
Attorney General Mayer was busy pre-
pairing the papers IN the suits he intends
to bring against the Equitable directors. He
cannot tell when these papers will be COM
pleted, but expects to have the complaints
ready by the end of the week Suits will
be brought, Ii was learned, against every
director Of the society at the time this trou-
BILE began under sections of the civil code
permitting action to be brought against the
directors or managers Of a corporation to
compel them to account for their manage
ment Of the concern. This probably VIII
take the form of blanket suit against
the directorate calling on each man to ex-
plain just what part he took In the man
agement of the society, and his relation to
extravaganza and alleged mismanagement
Later actions will be brought against in
dividual directors under other divisions OF
that section of the CODE to compel them
to refund to the society funds wrongfully
diverted to their own profit, and to debar
them from holding office in any insurance
company.
Stranahan Declines to Serve.
Nevada N Stranahan. collector Of the
port who was named by the trustees of the
Ryan stock as one of the new directors has
declined to serve, lowing to press of official
duties, which will make 1t impossible to
give the time necessary to devote the proper
attention to the work of the directors
Mr.. Stranahan Is one of Gov. Higgins clos
est friends and is also a warm friend of
Superintendent Hendricks. 1t was said that
this friendship had much to do with his
refusal to serve. as he felt that he might
embarrass the governor and Mr.. Hendricks
in their work.
Clerks In the various departments of the
Equitable are much dissatisfied with a re-
cent order from Mr.. Morton, that after
October 81 they Will be paid at the end of
each month instead of on the 10Th, as Is
the present custom. Mr.. Morton, in his In
vestgation. found that the Equitable, by
paying It's employees In the middle of the
month, was practically advancing to them
pay for two weeks which they had not
earned. He considered this unbusinesslike,
and determined that the clerks should not
be paid until the time for which the money
was due had expired.
William A. Day, the assistant to the At
torney General, who was appointed con-
troller of the Equitable Life Assurance So
ciety, probably will enter upon his new
duties at once, although his resignation
when accepted by the President may not
take effect until September 1. Attorney
General Moody consented to immediate
withdrawal although he was anxious that
Mr.. Day remain in the Department of JUS
uce until Mr.. Moodys retirement from the
cabinet. Mr.. Day went out of Washington
last Saturday.
Mr.. Day, 1t is suggested. may have been
1.-THE choice of former President Cleveland,
of whom he has been a personal friend for
many years. and he is personally well