The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-18
LOAN TO EQUITABLE A BLIND,
ARDENT HUNTERS on TRAIL on
THE LOBBYING FUND.
Society Assumes the SOss 900 Debt-scnse5
One May Take Up That Depcw Loate34
-Ryan Said to Bc ReadytO Sell stOca<l
jerome Gets Hendricks Evidenced

loan of 1855 900 from the Mercantile TruesA
Company, which was mentioned In StatoN
Superintendent of Insurance Hendrlcks's6
statement published yesterday, Is, 1t wasl
learned yesterday, receiving the most
earnest attention of the State Superintend.f
emit, and Furthermore is being looked intol
by Chairman Paul Morton of the Equitable1
and by Attorney General Mayer.
There is a growing suspicion in good4
many quarters that this standing loan
covered expenditures by the EquitabloS
society which the officers did not wish TOT
have appear on the society's books 1t ~
known that an investigation rs being carr
ried on by at least one of the persons meneI
toned above on that assumption. By meano}
of this loan, it was said yesterday, the,
Equitable officers W ould have been able td'
pay money for influencing legislation, OF
for other improper things that have beens
charged against them, without the entrieei
appearing on the society's books.
This loan, according to the testimony.
of H. C. Deming, president of the Mercans's
tile Trust Company, before Supt. Hem
drichs was carried in the names OF Prest>s
dent James w. Alexander and T. B. JordanJ
comptroller, as trustees. 1t did not appear
in the society's statement. 1t was learned
yesterday that the loan has now been placed
in the name of the Equitable society
Mr. Deming. when asked by the super
intendent what he knew about this loans
said that it had stood on the trust com
pany's books for five or six years, and had
been added to from time to time and also
reduced from time to time.
The Mercantile Trust Company, Mr..
Deming said doesn't ordinarily loan $8Ss coo
on the obligations of two men as trusteesl
but it had in this instance. He did not
know what the money was used for, but
the rate of interest which was paid to the
trust company was per cent. At the
same time he admitted that the society
had had large deposit in the trust COM
pany, on which it was receiving only per
cent. Mr.. Deming finally admitted to
Supt. Hendricks that he had always Cons
sidered the Equitable society responsible
for this loan. VI
Mr.. Hendricks said in his statement
yesterday that Gov. Higgins, when he heard
of the loan, ordered him to hold up his
report and investigate further. This the
Superintendent did, but up to the time
when his report was made public he had
been unable to find out anything definite
had boon put. 1t was said shortly bcfore
the Hendricks report was published that
the Superintendent had called in the head
OF the State Banking Department TO follow
a trail which led into an institution over
which he had no jurisdiction, and reports
were current yesterday that Mr.. kilburn
might be asked again to help out In this
matter.
H. C. Deming testified that the averages
amount of the loan was between $500 coo:
and $500 ,OOO In view of the present tn-I
creased amount, suggestions were made
Yesterday that thorough examination
of the loan transactions might disclose
some interesting information In regard 70
the settlement of the Odell Shipbuildino,
suit. as well as other shipbuilding tangleA
OF recent date. LA,
Chairman Morton, 1t was said yesterday
is bound to rush the investigation OF this
matter as far as ha can with his public ao1
countants and both Acknowledgement Mayer
and Supt. Hendricks, 1t was declaredl
are ready to cooperate with him. so farl
as was learned yesterday, Mr.. Jeromei
| has not yet begun an investigation OF the
| loan transa ctions, and probably Will nou
| until he has gone over carefully the entire
testimony in the Hendricks investigation.
| II was learned yesterday also that negos
| tiations have been opened for the paymens'
of the $3.50 900 loan which the Depew 1ms
| provement Company made from the Equisi
| table after Senator Depew bad voted for>
| il as a member Of the executive committees;
| Senator Depew, according to the testimony
! given before Supt. Hendricks, guaranteed
the society against any loss in the venture !
bit the mortgage that the society held
had to be foreclosed in 1903, the society
bidding the property in for about $55,0Oo.
The deed of the property was filed only
| two DAYS ago at the County Clerks ONCE
| in Buffalo. Who the person is that Is step
ping forward now with an offer to carry
out Senator Depew' guarantee (Which the
Senator denies he gave) was not learneds
but it was said that the prospects are good
for repayment Of the loan in few days. =
| A new director Of the Equitable Is authority
| for the statement that Thomas F. Ryan
stands ready to sell the 500 shares OF tho
societv's capital stock which he bought
| from james Hazen Hyde for S2,500 600
back to the society at the price which he
paid for it, with per cent. interest added,
at any time that the directors of the society
desire. Before this could be done. the
society would of course, have to be au-
thorized by the Legislature to make the
purchase.
According TO this director, Mr.. Ryan has
an understanding with the three trustees
OF the stock, Grover Cleveland, Justicc
Morgan j. O'Bren and George Westing-
house, that he will make tho sale whenever
the societys governing body requests
it. 1t was said yesterday that Mr.. Ryan
also had assured several Of the newly
elected directors that he stood ready to
carry out this plan whenever it could be done
legally.
This information, 1t was said, was given
in response to inquiries by the new directors
as to whether 1t would ever lie possible to
mutualize the society thoroughly. Some
of the directors called at Chairman Morton's
Office yesterday and formally accepted
their elections to the board. Mr.. Morton
refused to confirm the statements in regard
to MIR. Ryans understanding with the
trustees. and no statement was obtainabls
at Mr.. Ryans offices.
District Attorney Jerome received copy
of the testimony taken in the Hendricks