The sun., 1905-09-14

Total 1SosUlb5
In furnishing this statement Mr.. Cromwell
said he resented any inquiry into his personal
affairs, but that he was willing to give the
information to assist the committee In its
work.
1t was also brought out yesterday that
the New York Life has at various times
entered into joint account with bankers
for the purchase Of securities; has furnished
all the money necessary for the transactions.
held the securities at its own risk and then
divided the profits with the bankers upon
the resale Of the holdings. The bankers
paid interest on the money which the insur.
ance company advanced for them in the
transaction, and the defense OF the New
York Life's officers was that the company
needed the facilities which the bankers
could furnish for disposing of the secure
ties.
syNDICATEs A NECESSITY.
Treasurer Cromwell of the Mutual Lite
when he took the stand asked permission to
preface his testimony with few words in
explanation of the Mutual's syndicate
transactions.
II want" said he "to say that there Is
nothing that we have to conceal. The
participation in syndicates by the company
has been a necessity. The law OF COM
bination in finance was brought neces-
sarily to the attention of life insurance
companies. When l became trea surer Of
the Mutual Life Insurance Company tho
total assets of our company were 500 ,000. 900.
The transactions in my department now
are over Sl0O, 000, 900 per year. When our
receipts were less, twenty years ago, 1t
was quite possible for us to buy from bond
dealers and pay the brokers profits, but
now it is absolutely impossible to buy ad.
vantageously large blocks Of securities,
except as they are foated by these COM
binations of capital popularity called syn.
dicates, and We have to 60 into them to get
our investments, and get them In sufficient
size and at ground floor prices.
we could not make our investments
without syndioatss. and We are partners
In every syndicate which we 60 into.
want to say further that unless we went
into these syndioates we would not be able
to invest our funds, except by buying in
small quantities and p aging the suooes-
sive profits Of middlemsn. We do not do
a banking business, and 60 30 far as to
say that unless we went into the syndioatss
we would not be able to invest our FUNDS.
MONEY NEEDS AN OUTLET.
Il ask You, Mr.. Hughes, and tho COM
mittse to consider that we have now over
S45o, 900 900 OF assets. and while We have
over 500 900 900 invested in bond and mort
cages, We are constantly under the neoes-
sity Of finding additional Investments for
our large accumulations Of funds. That
is the condition. 1t is no theory. II IS a
condition which we must meet. and tho
exhibits are here which show how we have
to comply with it. Our investments arc
such that when Mr. Tappan-I suppose
about the most widely known and most
honored bank President in his day in New
York-died he left it as condition that
his trustees should have one privilege, and
that was to invest in securities only that
were accepted by the Mutual Life. That
is the way we have invested our money
but We could not make the transactions
Of 500 900 year In securities bought
by this company without using syndioatee.'
Mr.. Hughes, counsel for the committee,
said that Mr. Cromwells remarks suggested
a very interesting line Of inquiry. Mr..
Cromwell's contention, as he understood
it. was that the Mutual had outgrown the
investment field, and that even though
the officers might not favor such oper-
atoms il they were doing business on Q
smaller scale they could not help entering
into the transactions under present con-
ditions.
$50 that said Mr.. Hughes. the s.see /.