New-York tribune., 1905-12-20
BOUGHT RYAN STOCKS.
PROBE WASHINGTON LIFE.
His Sons Brokers Company Specu-
lated IN American Tobacco.

Evidence which tended to illuminate tn
doubts E. Il. Hartman entertained about tn
rpurity'' OF Thomas F. Ryan's motives in &C
curing the Equitable stock was produced at tn
legislative insurance investigation yesterday
The discoveries affected the Washington Life
the company in which Mr.. Ryan testified he hat
taken interest at the request of ex-Governo
Levi P. Morton Harry Payne Whitney and ex
Governor Morton. with Mr.. Ryan. hold 375 o
the 500 shares OF the company. They have held
them since the first Of the year
Mr. Ryan testified that it was to save this
company that he Joined Ex-Governor Morton
Since be took hand in the Salvation Of the
washington Life three notable things have oc-
cured. First, Mr.. Ryan's sons through the
firm OF Ryan & Kelly. and later A. A. Ryan &
Brother have done the larger share of the Sc
curity and stock business of the Washington
Life; second. the company has reduced its hold
ing In real estate and purchased stock in sew
srsl Ryan companies. such as the 2d-ave, the
seaboard Air Line; has actually specuIated IN
American Tobacco, a Ryan property; has run Cd
its deposits at the Morton Trust Company, a
Ryan concern. and has accepted syndicate par
tcpation through this company also
The effect OF the Ryan control upon the Wash
Ington Lifes affairs dates from last December
when Mr. Ryan started out to help save the
company with Ex-Governor Morton. John Tat
lock. president Of the Washington Life. testified
10 the facts in the case, starting with the process
By which Mr.. Morton. Mr.. Whitney and Mr.
Ryan obtained the stock held by the company
at g cost sufficient to keep the company from
going to the wall Up to that time the company
had stuck closely TO real estate and real estate
mortgage holdings. which then aggregated up
ward Of S11000000 Since that date there has
been g decline Of 100000 in this field, but
stocks and bond purchases have increased by
100000. This was in direct obedience to one
Of the first resolutions of the new finance COM
nittees which advised departure from the real
estate field.
BOUGHT AMERICAN TOBACCO.
In these stock purchases Seaboard Air Line
and Second Avenue figured. but it was American
Tobacco which was most striking Purchases
In this Ryan stock aggregated 100000. The
minutes Of the finance committee showed au-
fhorization for only 100000. Mr.. TatIock ad-
mtted that this committee had finally compelled
the sale Of this stock an industrial" He also
admitted that it had not been viewed as a per
nanent investment Why there should have
been this playing with a Ryan stock was not
explained. It was shown, however. that the
stock sold to the Washington Life by the
aTm Of Ryan & Kelly. brokers, to which Mr.
Ryans son belonged. It was later resold by this
hrzr, which thus made two profits; the insurance
company made soma gain through this also
a
Ryan undertook the Salvation" of the Wash
ington Life.
Why did you close out this American Tobacco /
sccount2'' Mr.. Hughes questioned.
Because it was only q temporary investment"
was the reply
How did you Justify the temporary invest
nsnt7" he continued.
Well, the finance committee thought that this
amount of money. thus employed, ought to be
set 10 work" responded Mr.. TatIock
did you not close out the American Tobacco
deal because the board Of directors disapproved
Of the Transaction"
Il believe the committee of the board did make
some such resolution" was Mr. Tatlock's final
admission
Mr. Hughes then investigated the banks and
trust companies with which the washington
Life had dealings or kept balances. The Chat
ham. Liberty, National Bank Of Commerce. the
Morton Trust and the Girard National Bank Of
Philadelphia were named Mr.. Hughes found
The Norton Trust Company, in which Mr Ryan
Is deeply interested. the most productive In
July Of last year, before the work of rescue was
undertaken by Mr.. Ryan, the Washington Life
had balance with the Morton Trust Company
of only S126,O00. The acquisition of stock took
place IN December. and the balance at the Nor
'on Trust, Mr.. Ryan's company promptly appre-
aated nearly ten times, amounting then to
SLOoIOo0. The bank paid 21k per cent on this
balance. This balance remained in q slowly de-
'reasing amount for six months It was $685.
10 in February and $4,000 in May, it fell one
laf oy July and suddenly diminished to $4,000
\ October. The cause Of this sudden drop not
'elng apparent, Mr.. Tatlock thought 1t was due =
Q the payment for stock at the outset and | e
Ne gradual taking up of this money for invest r
nents The balances in the other banks were
Without any special significance that Of $4,000 s.
? the National Bank of Commerce being ap- !,
srenty for an emergency. All paid interest tt
ave 5000 IN the Chatham bank. p
REPUBLIC IRON AND STEEL d
MI Hughes then turned to syndicate partici- p
snons of the Washington Life. Imperial Jap s
hese bonds Of several issues purchased from 81
Nuhn. Loeb & Co. and Pennsylvania Railroad
0nSertthles from the same house revealed moth - -
e significant Then came curious incident | fo
ne Washington Life Mr.. TatIock explained
box $4,000 participation in the Republic Iron h
ao Steel Company. Blair & Co. were syndicate
lsnagers but the insurance company did not H
orchased its interests from the syndicate man
gers. It took them indirectly through the No a
-orton Trust Company. Another transaction -
1th company in which Mr.. Ryan is inter
ited was thus shown. Apart from receiving
letter from the trust company that the par