The Providence news. (Providence [R.I.]) 1891-1906, 1905-09-08
INSURANCE
men SHARED
PROFITS

New York, Sept. s.-Frederick Crom-
well, treasurer OF the Mutual Life In
surance company. testifying before the
Armstrong insurance committee at the
second hearing yesterday, admitted that
he, as well AS other officers and trustees
or the Mutual. had participated In under
writing syndicates which sold bonds to
that institution. The trustees named by
Mr.. Cromwell as having engaged i'm these
transactions were. besides himself. Rich
ard A. McCurdy. president of the COM
pany; George O. Haven. and A. u. Jul
Hard. All OF these men were either regu-
larry or ex-onicha members OF the COM
mittee. with which all transactions in
volying the buying and selling Of securi-
ties originate.
The participatlons of the Mutual truss
tees diTer from those OF the Equitable
directors. which have been condemned by
the state superintendent OF Insurance. in
that the trustees acted individually. took
their underwritings through outside bank
Ing houses instead OF from the managers
OF the syndicate. and never subscribed UNI
I'll after the Mutual company had been
allotted It's particlpation-for the company.
II was said. also was a member OF the
syndicate.
Mr.. Cromwell believed. he said. there
was absolutely no improperly in the
transactions. although it was a fact that
the profits derived from the sale Of the
syndicate securities were divided pro rata
among tho syndicators. lie had. he tes-
tihed, Thought very seriously over The
question, and had for a long time re-
Trained from going into the syndlcates
lie finally decided TO take participation
when he saw others OF the trustees doing
1t. The attitude of the Mutual Life
toward these syndicates, he testified. in
no way Influenced any OF the trustees in
regard to their personal investments. and
no trustee 20 his knowledge had ever had
any direct participation in the underwrit-
ings allotted 10 the company.
From Mr.. Cromwells testimony IL was
also shown that the trustees Of the Mu-
tual Life are large stockholders IN that
institutions subsidiary trust companies
and that the Mutual keeps standing de-
posits in most Of the companies. Mr..
Cromwell defended the parent company's
relations TO these institutions and de-
clared that they had been an immensely
profitable Investment for the Mutual.
At the hearing also the bill OF sale and
other documents relating 10 the transfer
or the Hyde majority stock to Thomas r..
Ryan for a consideration OF S2,jO0.000 was
made public for the FIRST time. The
papers positively put 2 quietus 10 the in
timations thai have been made in some
/ uAdi AFlF that ~ NFilf WIS NbA ~ hNlAh INV
transaction. Mr.. Ryan has his rights TO
the stock absolutely guarded. James IL.
Hyde going so far even as to attach a
codicil to his will in which he practically
indemnihos Mr.. Ryan against any breach
by him as regards certain terms Of the
trust indenture under which the stock
VAS left 10 him by his father, the late
Henry II. Hyde.
Nothing particularly new WAS developed
I'm regard TO the Equitable society, other
than the statement drawn from one of
the officers that the society does not know
the present whereabouts OF Thoma ID
Jordan. the former comptroller. IT was
stated that Mr.. Jordan was wanted as \
witness To explain tho loan OF $685.. oC
made to tho Equitable society by the
Mercantile Trust company. u was also
stated that James II Hyde. former first
vice president OF the Equitable, later will
be called as a witness before the COM
mittee.