The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-09-08
SYNDIcA7ES In MUTUAL, TOO.
BUT COMPANY GOT FIRST WHAOK,
ITS TREASURER SAYS.

President McCurdy and one. Omoess
Interested IN 'UsdsrwTsting sshsass
-Omoers Held Stock IN subsadisry
Companies Hydes sale Bona F1de.
Frederic Cromwell; treasurer Of tho
Mutual Life Insurance Company; testify
inp before tho Armstrong insurance COM
mittee at the hearing yesterday, admitted
that he as we'll as other Officers and trustees
Of the Mutual had participated In under.
writing syndicates which sold bonds to
that institution.
The trustees named by Mr.. Cromwell
as having engaged In these transactions
yere besides himself, Richard A. McCurdy.
president Of the company; George g..
Haven and A. D. Juilliard. All OF these
men are either regular or ex offfcio MEM
bers of the company's sub-committee OF
the finance committee with which all
transactions involving the buying and sell
ing Of securities originate.
The partioipations Of the Mutual trustees
differ from those Of tbs Equitable directors,
which have been Condemned by the State
Superintendent Of Insurance; In that the
trustees acted individually, took their
underwritings through outside banking
houses instead Of from the managers Of
the syndicate, and never subscribed until
after the Mutual company had been al
lotted it's participations-for the company,
it was said, also was member Of the syn
doatss.
Mr.. Cromwell believed, he said, that there
was absolutely no improperly In the trls-
tees engaging in these transactions, al
though 1t was q fact that the profits de-
rived from the sale of the syndicate secu-
rites were divided pro rata among the
syndicators. He had, he testified, thought
very seriously over the question and had
for a long time refrained from going into
the syndicates.
He finally decided to take participation
when he saw others Of the trustees doing
It, The attitude of the Mutual Life toward
those syndicates. he testified. in no way
influenced any Of the trustees In regard to
their personal Investments, and no trustee
to his knowledge had ever had any direct
participation in the undertakings allotted
to the company.
From Mr.. Cromwell's testimony II was
also shown that trustees OF the Mutual
Life are large stockholders In that institu-
TONS subsidiary trust companies and that
the Mutual keeps standing deposits In most
Of the companies. Mr.. Cromwell defended
the parent company's relations to these In
stitutions, and declared that they had been
an immensely profitable investment for
the Mutual.
SALE TO RYAN BONA FIDE.
At Yesterdays hearing also the bill Of
sale and other documents relating to the
transfer Of the Hyde majority stock In tho
Equitable to Thomas +. Ryan, for . con-
sidsration Of sasoo.oo0 wepo de. public
for tho Arst timS. The lpspsss positively
put Q quietts tU-ths ntamAtlcaGsthaS'Aa vo
been made In some quarters that the SALE
was not bona ado tr1nA otion.
Mr.. Ryan has his rights to the stock
scrupulowly guarded, James Hyde going
90 far even as to attach a codicil to his
will, in which no practically indemnifles
Mr. Ryan against any breach by him a.
regards certain terms Of the trust indenture
under which the stock was loft to him by
bis father. the late Henry B, Hyde.
1t was in the afternoon session that
the testimony in regard to the syndicate
transactio of tho Mutual trustees came
out The Aldermen's room In the City
Hall, where the sessions are being held,
was filed at the time, and intense interest
was shown in everything that Treasurer
Cromwell had to say on the subject.
Charles E. Hughes. the investigating
committees chief counsel. examined Mr..
Cromwell.
THE CUBAN BOND SYNDICATE.
Mr. Cromwell. soon after he took the
stand mentioned. by way OF illustrating
the advantage OF certain Of the Mutual's
relations with its trust companies, q syndi-
cate ia Cuban bonds. and he returned to
the subject to make some correction In his
testimony.
Will you please, now that you have
mentioned the syndicate. state just what
the syndicate was-who controlled it?' said
MIR. Hughes.
MIR. Cromwell said that Speyer 4 Co.; Of
which James Speyer. a trustee OF the Mutual,
10 member, had arranged with Cuba re-
gsrding the sale Of the bonds. The Gala
tin Rank, several Of the other big life in
surance companies besides the Mutual,
large banking houses and some individuals,
he thought, participated In the syndicate.
Y. What individuals paruoipat0o IN IL -
far as you know A. That don't know.
] know that the banking houses did. but
don't kno W the individuals.
.. Did you participate In It? A. No, sir.
not through them.
Q. Or MIR. McCurdy? A. No. sir.
Q. Or any Of the officers OF your company
A. No. sir.
Q. Other than Mr.. Speyer. who was dlrec-
tori A. Mr.. Speyer was q director. will
not say In participating through the bankers
he got it that way. l cannot tell. but in many
investments of that kind no one ever partici-
Dated with the Mutual Life.
Counsel for the committee asked the
witness whether he meant by that that
no one ever takes part Of the Mutuals
allotment. Mr.. Cromwell said that wasn't
what he meant, although II was . fact
that II the Mutual took out subscription
for 81 900 900 or 5000 900 nobody else ever
Participated in It.
MUTUAL GOT THE FIRST CALL
Mr.. Hughes wanted to know whether
any members Of the Mutual finance COM
mittee had been asked to participate IN
the syndicate through the banking houses
which had subscribed. The reply was