The free lance. (Fredericksburg, Va.) 1885-1926, 1905-09-16
THE INSURANCE PROBE
Methods Of Metropolitan Company
- he Scrutinized.
MUTUAL CO. MADE BIG P GIFTS
T-cssurcr Cromwell Says Mutual
Coueht 100000 Shares Of Trust
Company SICK and Re-c''ed SL-
10000 H. Cpidends.

GOhHlfA KNf~NNfNNN
Company SICK and Rc-ci|ed ST.
10000 H. dividends.
New York. Sept. r.. when the spe-
cial legis alive committee probing life
Insurance NICHOLS adjourned, CHER
Counsel Hughes had finished for the
present the examination lnto the Mu-
tual Life Insurance company, and the
Metropolitan Life Insurance company
was started on. when Silaf b. butcher,
a director and a member OF the finance
committee. was called TO the stand.
Mr.. butcher va5 que toned regard
ing the securities held by the Metro
politan and as TO the syndicate oper-
ations Of his company. lie vas asked
the salaries Of the company g officers.
but could not remember them. lie Will
present the list of officers sa les to
the committee later
OF 81 100000 of the socuriti'5 held
by the Metropolitan about sG5.oOO,OOO
were purchased from NarUilyc & Co.
and W. \. Pei L CO. The reason. Mr..
butcher thought. Nhy 50 great an
amount o. bin .s rc5 done with
these lims was because they have
done 3 ..ir.ss s-i.,..c.or-y, and the
ccmpiry O.. ncl J., advisable 10 con
time with tem. Mr butcher said the
president usually did the purchasing
OF securities ,or tie Metropolitan.
It appeared from the questioning
that the president OF the Metropolitan
had sole discretion in which banks and
trust companies deposits should be
kept.
Earlier in the day Treasurer Crom.
well had taken the stand to continue
his explanation OF the Mutual Lies
syndicate operations. In explaining the
relations of the Mutual Life with trust
companies. Mr. Cromwell stated the
interesting fact that on the purchase
Of sl.120.0O0 shares OF the Title Guar
antee and Trust company the Mutual
had received in dividends Sl,22O.OOo.
making these shares cost nothing and
realizing profit Mr.. Cromwell stated
these shares were now selling at over
600.
on the advantage Of dealing through
syndicates in preference to buying
railroad bonds direct, Mr.. Cromwell
said be had actually tried to buy bonds
directly from a railroad company. he
went to his friend. Stuyyesant Fish
president Of the Illinois Central rail
road
Mr.. Fish told me that he could not
AFFORD to sell bonds to the Mutual, he
said.
Then the truth is that the railroads
must stand in with the bankers in
order to sell their securities. and the
insurance companies must stand in
with the bankers in order to buy at
low prices?" Mr.. Hughes asked.
Exactly"
THE bankers control the situa'
tom"
mo doubt about that"
THE advertising. printing. station
cry and postage accounts Of the Nh.
tual is s1.134SS376; OF the New York
Life It is SS51.2S46S; for the Equit.
able s772.645.50 Can you explain
these very large amounts"
q know nothing about it. Current
expenses OF the Mutual are under a
special committee"
rs the same true OF the legal ex
penses to the sum Of $364,254?"
Il have nothing to do with II. II
would be under the law department
do you as subsidiary companies
make advances to agents?"
mo. sir
"How are advances made to agents
by the Mutual?'
ut is done through the general
agents Of the department. but under
stand the amounts are not large