The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-22
hyde SECURED $6S5,o00 LOAN
,,.vOR THAT NE PUT UP LARGE
PANT or MONEY TO PAY 1T.
Sote 10 Mercantile Trust Endorsed ~
Him as Equitable vice.President Pay-
ment May Block Revelations Is 10
I.se NJ Money Union Pacific TRANSFER

roe Of Moncy--IfniOn Pacific Transfer.
That $685. 900 loan which stood on the
,ooks OF the Mercantile Trust Company
u the names OF James ". Alexander and
Thomas D. Jordan, then officers OF the
Enuitable society, as trustees, was secureo
Nv James Hazen Hyde. Mr.. Hyde, as vice.
nresident of the Equitable. 1t ia understood.
;,dor.ed the note given by Alexander and
Jordan
The note WAS taken up last Monday
l,lv,7 A certified check for the full amount
ras deposited with the trust company oy
A. Jordan. This was the day on which
s,o,e Superintendent OF Insurance Francis
uerdrcks's statement that he had been
unable to find out the purposes for which
,he loan had been negotiated was made
pu' lie. l.;
taking up the obligation Ia known to the
state Banking Department, but not YET
d;sclosed. 1t was reported, however. that
Mr. HYDE had put up large share OF the
oro,,nt needed to take up the obligation.
Wr Jordan is not accounted wealthy
man his salary as comptroller having been
"a, ooo n YEAR Mr. Alexander, II any OF
HE money was used in closing the account,
!, was learned yesterday, personally knew
notbing of the transaction. He is very
n, at BABYLON L. l.. and ia no longer con-
suited in any business affairs relating to
the Equitable.
The state Banking Department is in
possession OF a record Of the payments
made under this loan account. 1t was
said that there is no evidence that a certain
politician's Shipbuilding suit was settled
ont of this blind loan or that other Ship
building settlements figure in it.
There is not it was declared. anything
that would indicate directly that any pay
ments had been made from the loan account
for lobbying fees.
The loan account, it was minated. may
have been used in the paying OF losses
incurred by officers and directors OF the
society as we'll as by the society itself in
speculative ventures. These losses. 1t was
suggested. SO far as the society was con-
,erned we're such that the officers may not
have cared to have them recorded on the
socie,y's books. 1t was also reported that
the loan account represented in large part
nayments which had been made to persons
who had brought Matchmaking suits against
the Eouitable-suits, for instance, to compel
an accounting and other actions in which
many Of the facts that have recently come
TO light regarding the society's manage
nent would have been brought out.
1t is denied absolutely that the Equitable
society ever paid penny toward redicln 3
the loan. The $685. 900, it was declared
represented an accumulation Of obligations
extending over period Of five or six years.
President H. c. Deming Of the Mercantile
Trust Company testified under oath before
Supt. Hendricks, though, that the average
amount of the loan was between $500 Goa
and 34o0, 900 and that it was sometimes
more and sometimes less. II the loan was
decreased the natural inference Is that
payments were made.
whether there we're any records on the
Eouitable's books of any payments having
been made on the principal OF the loan or
az interest, said that he would make no
but that he would give the details Of the
transaction when he was prepared to do 80
accurately. He denied positively that the
Equitable society had paid any part Of it.;
It was evident yesterday. that it is the
purpose Of the persons chiefly concerned
IN the loan to consider 1t entirely as per-
sonal matter between Alexander and Jordan
aud the Mercantile Trust Company and
eliminating the Equitable from, it alto
gether, thus place it outside the scope
Of ss 1t n,ncrss the S Spn aon
transa ction might be able to do this, il
thew can explain satisfactorily that they
were not acting trustees for the Eqult-
allie and that the society has paid nothing
either on the principal Of the loan or FOL
interest.
They will, however be confronted with
the statement made by President Demine
before Supt. Hendricks that he always
considered the Equitable Society respon'
D for this bs oT SsD tH to a be
ship which Alexander and Jordan exer-
csed in taking out the loan.
Mr. Hyde before the present loan trans.
action became public had returned to the
society more than $4,000. OF this. how,
ever ne still claims ownership to ses, 900
representing the profits Of the James Il
Hyde and Associates" underwriting syndi'
cate transactions.
Mr.. Deming, the Mercantile's president
any details Of the loan transactions The
loan had he said, been taken out OF the
company by those who borrowed and tina
was sufficient for him. He was asked
whether the books Of the Mercantile com.
would be no record Of the transaction after
II was closed.
The examination being made by Banl
Examiner Judson,' he said. us confined
to the present assets and liabilities Of the
company That is all have to say
1t was said yesterday that Kuhn. Loet
3 Co, had received notice to transfer the
Union Pacific preferred stock standing on
their books in the name Of James H Hyde
and Associates to the Equitable Life Assur.
ance Society. Mr. Schiff testified before
Supt. Hendricks that his firm never sole
any Union Pacific preferred to the Equitable
society and that Mr.. Hyde was the only
person he knew in the transactions that
are criticized. 1t ia understood that Kuhn
Loeb 4 Co. have sought the advice OF
counsel as to whether they should make
the transfer to the Equitable society OIL
not. Mr. Schiff refused yesterday to dis
cuss the report.
Gage f. Tarbell, the Equitable's seconc
vlce-president, made this statement yes
terday in regard to the legislative inquiry.
One thing should be remembered, life
insurance is one Of our great institutions
IN no country has it thrived as In America
1t is one Of the greatest institutions Of the
country. More than any other. 1t Ia baseo
on confidence, and it has done more gooo
Than any other institution. There has beer
little black spot up in one corner. AL
eyes have been turned t., it. The grea
white stretch of good has been overlooked
AZ confidence has. been somewhat sha ken
there is nothing more likely to restore Il
than full honest, impartial Legislative