Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-05-30
JORDAN is UNDER
BAIL OF $4,000
Details Made Public of the Insurance
Transactions of Which He
Is Accused.

books among other loans, four which had
been made to Adolph S. Ochs. aggregating
$4,000. These loans had been running for
several years, but. only one of them, for
$50 900. at , per cent interest. is specified
in the indictments This loan was secured
10y 3.0ol shares of the stock of the New
York Times Publishing Company.
The Equitable also had on its books
loan of $1,000 to Louis NJ. Bailey. a clerk
In JOrGans office, which was secured by
fifty shares of the Lawyers Title Insurance
Company and thirty bonds of the Colorado
and Southern Railway Company.
Carried as Open Accounts.
There We're as well loans for S1o2. 900
which were carried as open accounts. All
these loans to Ochs, Bailey and the others
were transferred to the Mercantile Trust
Company on December o. 1896. and an ar
rangement was made whereby the Mercan-
tile Trust Company advanced nominally to
Louis NJ. Bailey SI31.215. the exact amount
of these loans. Bailey apparently put I'D
as collateral for this loan the collateral
which the Equitable held for the Ochs loan.
on January 4, 1903. the Equitable paid the
Bailey loan and took back the securities
which Bailey had oStensibly put up. No
collateral was put up for 100000 worth of
loans carried open accounts. These
loans were as follows:
Cafe Savarin. $4,000: A. W. Maine as
slStant actuary to the company, So $50:
Equitable Trust Company SIS O7S; H. R.
Courson. assistant auditor to the Equitable
S',ll3; w. B. Bremner. clerk for the Equi-
table. 500; F. M Perdreigh, secretary to
James w. Alexander, $500.
Loan to the Times.
Another loan to the Times Publishing
Company for $3s 1924 was brought out
before the special grand jury. This was
also transferred to the Mercantile Trust
Company, although the Equitable held
a rift for loan
but instead of carrying it as an asset the
loan was listed as an open account.
Seven of the forgery indictments are the
result of the loans made to employees of
Kuhn Loeb & Co. These loans in all
amounted to 10,2oO,0OO and were made on
December 20, 1904, to the following clerks:
simon siegman. two loans, sl,2oooOo and
81. IOoOoO; Herman Woog, one loan, 81 500-
$50; j. j. Hanauer, one loan, $2.150,O0O;
SeiSeld Haymann. two loans, $3.50, OOJ
and $1,000, 900; Eugene H. Paul, one loan,
S1,150,0OO
Checks to Kuhn, Loeb & Co.
According to the indictments, checks for
various sums were made to the order of
Kuhn, Loeb & Co., and were signed by
Jordan. Then a messenger from the
Equitable took them to the firm of Kuhn,
Loeb & Co, where they were Endorsed by
member of the firm, Louis A. Helms
heimer Then the same messenger took
the checks to the various banks and trust
COMPANIES Oh WHICH lne cneCkS were
drawn-the Mercantile Trust, the Equita-
BILE Trust and the National Bank Of Com
merce. The individual checks on those
institutions were deposited with the re-
SpectiVe companies, and in exchange the
messenger got certificates of deposit for
the proper amounts. Made to the order of
Kuhn Loeb & Co., these were then taken
by the same messenger to the offices of
Kuhn Loeb & Co, where they were in
dorsed by Heinsheimer as payable to the
Equitable
That having been done, the messenger
carried them to the Equitable, where they
We're put in envelopes, which were
written the names of securities which were
supposed to have been put up as colat-
eral. AS matter Of fact, the securities
never were put up and Kuhn, Loeb & Co
never got any money for the so-called
loans
Then, on January 4, 1905, after the an
nual report had been made to the state in
surance department, the certificates were
taken back to the institutions which had
issued them, and retracing the method
which had been employed in making the
wiped out The indictments specify the
various books of the company in which
the entries of these loans were made, and
it is on these entries that the charges of
forgery are based. Some of the indict-
ments are for forgery in one book and
some in other books.
The perjury indictment Is a recital OF the
transactions on which the forgery charges
are based and the false report made to
the insurance department.
1t was brought out that the collateral
loans held by the company in addition TO
those to Mr.. OChS and Bailey were: ]. Il.
Forgan, president of the First National
Bank of Chicago, $4,000; Mercantile Safe
Deposit Company, S205,00O; D. II. Moffatt,
$500, 600.
The explanation for the Equitable reduc-
ing in its report its actual bank balance is
that the company did not want it known
just how much it had for investment and
N-g lla I,nv, l. 49,.
est. 1t is also believed that the $40 600, 900
which cut off was to be used for spec
ulat!On.