The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-30
EOUITABtEfR ISL GRAFT CUT.
EXAMINER FINDS INSURANCE
DEPOSIT Reduced SS,OOO,OOO.

No Tracs Of q Blind Loan. like ThAt OF the
mercantile, Is DlscOv, red. but Details
or Agents. Advances. Told Of by Frick
I and Hendricks, Are Made Plain.
The State Banking Department has Just
completed an examination OF the Equitable
Trust Company. The authorities went
into this institution Immediately aIter
thew had concluded their examination OF
the Mercantile Trust Company The ex-
animation of the Equitable, like the ex-
animation of the Mercantile, was, however,
designated regular senii-ann,ial lhsPeo-
ton. Yet special attention was also al.
rected In this case to things that concerned
tho trust companies relations with the
parent institution, the Equitable Lie AS
surance Society.
II was said yesterday that all the Facts
which Supt. Kilburn's examiners have un-
covered relative to the trust companies
business relations with the Equitable Lhe
Sui, h a!;Piis'iS% If;
use in his finaNreport on the Equitable
scandal. -
}tig to the El1A ga 4 rs ,ooo. aSfted on
tie books Of The Mercantile TrasST Company
in the names of James W. A3ander and
Thomas d. Jordan, as trusnE was found
by the State examiners N She Equitable,
but all the details regaeafE the loan ,ac-
counts of Equitable sesfts, criticized IN
both the Frck an&THendricks reports
were disclosed. ~
These loan acaNts consist OF claims
for large adva1esGHo agents made by the
Equitable socis ~h oh have been assigned
to the trust hpany. Credit has been
given the Equitable society in the trust
company Yf1B Books us so much cash de-
pesited. ca it has been admitted as an
ssse. .1he State Insurance Department
Toy the State Insurance Department
TO Knowledge these claims against the
aRef as an asset Of the society was said
by ~ Hendricks to have been the original
purIe of opening the loan accounts in
the INST companies. The other purpose
whi& q the State Superintendent pointed
out Id which has been regarded as the
chiel me, was to make profit for the trust
comSInies, in which many Equitable Of
Hcej Sand directors were interested as
stoo bders, at the societys loss.
Sv& Hendrcks's report showed that the
Eql BILE society in 1904 transferred to
the uitable Trust Company schedule
OF pts' aance amounting to 1885,
9S5 athat the assignment and agreement
togaer with the schedule were the only
pap<nS delivered by the society to the
tr,s company; that none Of the notes or
othdfavidences of debt held by the society
agaiain the agents were delivered with the
assignment, that the trust company simply
toolk Mis- instrument and entered it on its
boo Ras loan to the Equitable society.
4 Equitable Trust Company, like the
9TH kssubsidiary trust companies that
carr the loans, ran absolutely no risk.
Al claims bore s the guarantee ,o OF the
or ense in collecting the loans.
Al 5rding to the Hendricks report, the
EqJ bile simply entered the amount in
Ns f6eks and charged the parent institute
Z tiouHx per cent. interest. At the same
dmSx Equitable Trust Company was
paytg the Equitable Life only 2xper cent.
on II thousands. tho pstsE tHd On depot
/. witEthe company. IT the socfety had
( retd11&d these accounts it would have
s TT sas e Fl ssf i;;sas