New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-14

with this list in hand Mr. Hughes proceeded to
Ike up each Item to show, first. the amount of par
tic1paton OF the Mutual in the syndicate in which
us treasurer Mr.. Cromwell, was personally in
terested then the amount Of stock or bonds taken
by the company, then whether the company took
the bonds IN the shape OF a withdrawal from the
syndicate or whether it subsequently bought them
rom the syndicate In each where the latter
course was followed Mr.. Hughes emphasized the.
TACT that in buying in the market the Mutual had
contributed to the profits which the syndicate re-
celVec and which at pro rata share Mr. Cromwell
shared There was not however, at any time any
suggestion that the action had been taken with
IN mind Or this point the witness said:
= wish to say that no officer Of the Mutual Life
ever participated in any transaction that would
AFFECT the interests Of the company in any way"
Running down the list OF the syndicates in which
Nj Cromwell was personally interested, as well as
the Mutual Life, Mr.. Hughes went into the Penn
sylvania items at length. In this transaction
II developed that the bonds had not sold as ex-
pected, and that the Mutual had taken over from
the syndicate 8 56s 500 when called upon, and that
the company still carried these. The original
subscription had been S50oO000. In explaining the
participation OF the Mutual IN this Mr.. Cromwell
said that the Mutual the largest shareholder
IN the Pennsylvania Railroad That they did not
take any allotment of shares, they able
DO as stockholders. because they were such large
holders already. he also explained. The company
entitled TO s.666,oo0. Mr.. Hughes inquired:
Q.-why didn't you take the Sl,666,ooo? Admit
oNBut you. subscribed because you wanted to
help the syndicate, A--hes: that was It Didn't
want 70 TAX, an ~ NJ moTe STOCK ,o;ls t,on2
Oft was your intention individually, and OF the
Mutual Life. to let the bonds 90 to the public and
take profit for fotaton? A-Hes
In the next Item Southern Pacific frsts, Mr..
Hughes developed his line Of questioning more
fully He showed that the Mutual Life had par
ticipation Of $500 600 in the syndicate, and sub
sequentIy bought SO 00o0oo from the syndicate. Mr..
CromwelTs share in the syndicate was $4,000
For this purchase Mr. Cromwell showed the au-
thority OF the finance committee Of the company.
Mr.. Hughes continued:
o e Extent n d tsSf in the the H 5qn
cate, 931z on the u-aersLa nd5ng that It should
6 6g5 af the A PCPtc 0HeFiS ''O'' d o.
QNow ! notice under The head - @. Of profits for
Q.-That was the profit Of the public sale by the
$50 the purchase q he 5000 90 at ss BY
the Mutual made part OF [ 66 pronrSi rffs
SO 81 fr1 This tb ne Mgtpa o 900 % B 5af Az
On he Of The RePgb!ia Of CUBE s % nd
while the Mutual Life participated TO the extent
there this difference in ratio? Al can't explain
III look ii Up.
Taking up the deal in Mexican bonds, Mr.. Hughes
showed that this syndicate managed by
Epeyer Co. that the Mutual subscribed for $1,000
a. q profit OF 5000 and that the stipulation
eardiug the entrance OF the Mutual into the syndi-
cate carried necessity Of purchasing 5000 90
bonds at 90: that is. in the market or public
Offering He said:
o.-By taking the bonds at g the Mutual con
Gov 81 no distribution? Ayes.
toLS0f these profits the Mutual got its share
You individually participated in the syn
&c 10 the extent Of 81 900? A--Yes-
o. GO MA YOU buy any bonds for yourself? A-No.
US there any stipulation when you bought
Nm; oN3nd you got profits from the syndicate Of
g col o. A-feS
rRr-sT COMPANIES HAD SHARE.
hughes continued down the list In soma
M - z.tual had purchased in the open mar
oA9es =, The foregoing instance in others It had
Ae-' = I.,,a5 the usual syndicate role. The next
S iiiP'1 was developed when the discussion OF
new roreDese S. reached The Mutual
-, hts syndicate had been flo" 90 but $4,000
=, ICON allotted 10 four trust companies
OF TINS - - Mutual held blocks OF stock. These
N 80 T-n;ted States Mortgage and Trust Com
were 'i c,oranfy Trust Company. the Fifth
PAN net Company and the MorrlstoWn Trust
Company. .,, mad. an o,+s-5aa
,+,or defending the relatloh OF the Mutual
IS trnst companies, and declaring II was
VIZ - he Mutual use us own trust com
better - nan give others the handing OF the
palles for investment. He said mat ne person
large ,aa tsrss 70 ons COMPANY ana that In this