The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-09-14
GET INVESTMENTS.
FROM SYNDIC'A|.TES: N'|||D|:| !:
insurance Com pa nles
Compelled to Deal
With Them.
STATEMENT OF HIS
PERSONAL PROFITS
Treasurer Of Mutual Life Makes
Vigorous Defense Of Practices
Of Connpany-Mak V'olun-
tary Explanation for Bene-
fit Of New Y York Investi-
eating Committee.

t.sseIe1 psluIoossy Ad)

SnoaCi VsNHSAl
NEW YORK. SEPT. IA vigorous de-,
fcnsc OF syndicatcs and their operations
in connections witt, the insurance busl-
ness and d frank statement OF per-.
sonal profits gained through their opera
tons made by Frederick Cromwell, treas
.urer Of the Mutual Life Insurance Com
pany, was the feature Of to-day's ses-
sion ofj5the special legislative commit
tee, appointed a to probe methods OF life
Insurance companies in this State.
The defense of the synd dlcate was as made made
BY Mr.. Cromwell soon after he was call
ed to the stand in the morning. Before
he was asked n question, he begged leave
TO saw q few words and upon being
directed to proceed, said:
Syndicates Necessary.
..The law Of combination, which affects
finance, as everything else, has made
syndicates necessary When l became
treasurer, OF the Mutual Life Insurance
Company, the total assets of our COM
pany we're 500, 600, 90. Tho transactions
in my department now are. over $l0O vDO,7
900 per year. When our receipts we're
less. twenty years ago. 1t was quite pos
slble for us to buy from bond dealers
and pay the successive profits, but now
1T is absolutely impossible to buy ad-
yantageouslyi large blocks OF securities
except as they are noated by combina-
tons OF capital, popularity called syndi-
Gates, and we have to go into them TO-
get our Investments and get them In
suf1lcIent size and at ground floor prices
We could not make Z our Investments
without syndicates and we are partners
in every syndicate which we go into. 81
wantgto say further that unless we went
into these synGi tea we would not be
able TO invest our funds.Fgex except by
buying In small quantities and paying
up successive profits ofHmiddle men. 8
atI ask you, Mr.. Hughes, and the COM
8n,ittee, to consider thatswe have now
over s45O, 100000 of assets, and while we
have over $1,000 900 invested In bonds and
mortgages; we are constantly under the
necessity OF finding additional nvcst-'
ments for our large accumulattons OF
funds. We could not make transactions
of one hundred millions n year In the
securities bought by this company with
out using syndicates. M
Personal Profits.
ne a pSi ~
was made in a tabulated statement which
was presented to tho committee after
recess. It showed that Mr.. Cromwell
had made personal profit Of s26,371 from
syndicate operations during the past flve
years. In which he individually and the
Mutual Life Insurance Company had
participated Mr. Hughes chief counsel
I to the committee. Immediately took up
ca CHI Item OF these syndicate transnc cttons
In an effort to ascertain tho manner In
which the pronts were obtained.
S An Interesting point was brought out
when probing Il transaction In loennsyl-
.vnnia Railroad az convertlbles, In which
Mr. Cromwell made no personal profit
the witness stated:
"Of co,lr Sc, we are greatly Interested
III tho Pennsylvania Railroad. Il might
saw we are the heaviest stockholders.
Answering Mr.. Hughes, Mr.. Cromwell
said the holding OF the Mutual Life IN the
Pennsylvania Railrond was s5,ooo,ooo par,
II Tho connection OF trust companies with
the Mutual Life was brought out when It
was stated that the 100000 pounds ster-
ling s,bscrlpton to n Japanese loan Was
shared by tho United States, Mortgnge
and Trust Company and the Guarantee
Trust Company, In explaining THIS rela- l0,
ton. Mr.. Cromwell said ;345
1--WE gave the opportunities % the
trust companies In which we held large
intercsts for good reasons. AS ex-