New-York tribune., 1905-07-22
JORDAN PAID THE LOAN.
NOT FROM OWN POCKET.
Jud8on Calls Mercantile Trusts
Condition First Rate"

riec for the Equitable Life Assurance Society
was paid by Thomas D. Jordan. one of the uus-
tees and controller OF the Equitable Society De
fore Paul Morton dismissed him. MI Jordan
according 70 high Official Of the trust com
pauy. settled the loan for the trustees" James
". Alexander. it is said. knows nothing ABOUT
the transaction because OF his Illness
Whether M Jordan paid the money necessary
10 close the account out OF his own pocket could
not be learned. but such an idea was rioiculed
nv persons in accurate touch with the situation
M Jordan in the beginning was merely trus-
tee for the loan which represented the amounts
necessary 10 settle some personal obligations
and perhaps some OF the secret expenses OF the
Equitable IN spite OF his $4,000 year salary.
he was not considered a wealthy man
The accepted theory Was that the hasty and
extremely diligenr inquiry into the loan be-
gun by Insurance Superintendent Hendricks,
Bank Superintendent KiIburn and Paul Morton
almost simultaneous had frightened the in
terssts for whom Mr.. Jordan and Nr. Alexander
had been trustees" that the edict had been
TO settle the account quickly"
The Equitable Society had not lost through
the transaction as IL worked out, but probably
originally II had been intended TO settle the
account n some convenient manner from Equi-
table funds. II was believed
Meanwhile. the books in the Controllers Of
undergoing a thorough scrutiny for the last ten
years. Mr.. Day, appointed by Chairman Nor
ton 70 take Mr.. Jordan's place. has begun a spe-
cial search 10 see II any records have been kept
10 show for whom President Alexander and
NI- Jordan stood as trustees" So far, it vas
ascertaine6, nothing has been found. but Mr..
Morton is determined 70 know all about the loan
account
LOAN PAID BT CERTIFIED CHECK.
A c. Judson. State Bank Examiner. finished
his examination OF the Mercantile Trust Com
pany in the afternoon, and reported that it was
in first rate condition. In particular, It carried
no loans 70 any trustees OF directors of the
Mercantile Trust Company. Asked specifically
as TO the S6S500O loan. he said:
All I can say is that It was paid BY certified
check on July H.
r. c. Deming president OF the company.
would not discuss the details Of this loan ves
1erday, although he said he had explained r.
fully TO the examiners
The reason il does not appear now is because
It has been settled. Il is no longer an asset Of
the company, and so Mr. Judson did not find anv
record OF IL when he went over the assets YES
terday.' said AIr. Demng.
Mr. Morton would not talk about the loan
cambridge Colby, counsel for James W. Alex
n
answer questions 20 whether Mr.. Alexander
had had any part in the payment Of the loan
and whether he was interested personally in the
account or represented the EquitabIe or certain
individuals
Gage 2 Tarbell. second vice-president Of the
Equitable who Is a director Of the Mercantile
Trust Company. would say nothing about the
loan, because os Mr.. Mortous orders that no
Equitable officer should talk but as 10 life
Insurance IN general and the forthcoming in
vestigation he had this 70 say:
Life Insurance is one Of the greatest insti+u
-ons in the world. It has hourished nowhere
letter than here in the United stares T de-
pends entirely on public confidence: it is the
greatest # al enterprises dependent on public
conadeBce.
u IS true that confidence has been somewhat
shaken lstely.' ne went on. not needing the IL
reverent comment Of a bystander that lie in
~urance vas indeed a confidence game" simply
because i1 the whole domain Of life insurance
7ay OF in one corner there has appeared dark
spot The people forget the great white record
or Insurance in general feel sure that this in
Fesrigat-on, thorough, honest and exhaustive
VIII 5e OF great benefit 70 the insurance BUSH
rezs"
Attorney General Mayer left town yesterday.
iie VIII complete work or his suits against the
Equitable directors next week, II is believed.
SUGGESTIONS FROM NEw-ENGLAND.
The Nev-Engla1d committee Of policyhoiders
has sent out 10 poIicyholders in its district a
copy Of its suggestions 10 the trustees at re-
.r7t conference. These suggestions were:
I.rsr-That The company should furnish insurance
OF safety ~ The smallest possible cost Efforts TO
seeure large amount of new business in
-rease iae assets controlled BY the society jus
t-1a2ie only Tar they suDserve THAI end
75.3}a-i5aa.oal changes IA system must 2e in
LeFeeer serupuous ana efficient. the So
i--4ance oc particular eXtravaR1nL Illegal prac-
ices or the recovery o. profits wrOngfully divert
IL-rd-Iu order 70 secure Insurance AZ low cost
ne society must IL addition 10 other economies,
missions and for adverrising-pr practices common
.alloElng those of the great savings banks and the
--e-i 20 1oAcy holders from Inc mere increase IN
.fe volume or business.
ourth--A mutual lie Insurance society should.
ient iIstif utlor. NJ should be induced take
isfesis ~ those whom ne desires TO protect by it,
- one should be lured into becoming policy
prosperity. 22.s54 policies Iapsed when the average
.llt sr issued IL the Two preceding years was only
--l-f indicates thai a large number per-
cons were az least ii advised when they took out
- sie5.< n : ae society The fact that 2 20 poll
'fitten and entered not taken by intending
L9llcvhoders indicates the high degree OF per-
,as on which must have been exercised by the so
,g agents or solicitors IN addition the g. .S5i
~sEIfg4iing SSiS1sss surrendeIed while ony L 10
!1-eies aggregatug sI7, came to a natural
'~rInlnaticn by death, maturity or expry
4e relation of the society 70 intending policy
f,s seuld OBVIOUSLY oe not only free from ac-
.e'e irsnAness UnforJ unsrey this obiiRa ton has
-- .lan 5000 09o. without disclosing that the
rSsf 2arf represented deferred dividends.
LNh-Ihe issuance Of deferred dividend policies
i~-i-i11.ts s 2.seo.lialea OF greatly limited. The