The daily morning journal and courier., 1905-09-20
b718, 264 PAID OUT
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 executive committee of the Equitable -4se- Assurance society passed a resolu, ton authorizing the president 70 con- vey to the individual guarantors of the Turner loans the assurances of the so- ctety for their protection. On February l4, 1900, the president of the society, MT. Alexander, made a statement that
 Use loans were made in the interest Of the society and assured the guaran- tors that the society would see that the amounts their companies loaned would be repaid with interest.
 Mir. Morton referred the matter to special counsel who have assured him that the Equitable Life Assurance so- ciety is not responsible for the loans. MT. Morton has also notified the Mer- cantiIe Trust company that he will ex- pect 1t to repay the $71S,254 paid to it by the Equitable Life Assurance society.
 MT. Morton found that $265,0OO was paid by the Equitable Life Assurance society to the Mercantile Trust com pany on the $ss5,O00 loan, the nature of which loan has never been explained. Counsel have been instructed to begin proceedings for the return of this sum. This loan was carried on an account as the eJ.. w. A. No. 3 account" MT. Morton also reported to the directors that if would be necessary to charge off SS6 4SS unpaid balance of a loan to John E searles. who has gone through bank ruptcy. The collateral against this $S6'- 4SS MT. Morton declares is without value.
 At the conclusion of his report, MT. Morton stated: -S4
 "In case any other transactions or this character are developed you VIII be duly advised
 MT. Morton found that the Turner loans were made by the Western Ma tionl bank before the Equitable Life Assurance society became interested Ill the bank. The loans originally were as follows: .
 To John W. Young, $11S,O55, on collat- eral consisting of Salt Lake and Fort Douglas Railroad company's bonds and stock; Salt Lake and Eastern Railway company stock; Salt Lake Dock com pany stock, and Deming, Sierre Madre and Pacific railway stock.
 To the Kentucky Mineral and Timber company $25S,394, the colleAEral being contracts for the purchase of certain lands ill southeastern Kentucky.
 To the Amity and Irrigation compa- nv. $264, ,599, the collateral representing controlling interest in certain irriga- Lion ditches in Powers county, Co.
 To the total of $636,04S was added in- ferest of $25, 44S, making the total $661,- 491. The manner of transferring the loan from the Western National bank to the Mercantile Trust company, when the bank examiner objected to the col- lateral is thus described by MT. Nor ton:
 Henry B. Hyde, who was president of the society at the time, and also director in the bank, arranged to transfer the collateral to the Mercan- tile Trust company in the following manner: The collateral was first as- signed by the bank to George V. Tur- ner, secretary to Louis Fitzgerald, then president. of the Mercantile Trust com pany. Contemporaneously with the as- signmeTlt Turner, on the security of the collateral, obtained from the Trust company a loan of $661 1,491 (the exact amount that the collateral stood at on the books of the bank) evidenced by siig note dated November 15, 1894; and