The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-09-08

closely as that.
GOT OUT OF ONE SYNDICATE.
Mr. Cromwell explained further what he
meant by individual interests being with
he sent down to Kuhn, Loeb 4 CO. for q
participation in q certain syndicate, but
that as soon as he heard that the Mutual
hadn't been able to get as large subsortp-
syndicate.
=: 4. ;ys Wa Y:
Success wss Sso 81 sse Sss.uss S a A'
9. And that any particlpst9rs would DO
nsYsT ~ S{s .nhns & so. your
A. inc Ai f"st t shst tie invsstnsnt. -
Xoa mean that yH9 90 , not sLloE e th ne
fiuence your A. Yes. sir.
Mr.. Cromwell said that he was certain the
finance committee In making the compenyt
investments never considered anything
but the intrinsic value OF the security
seems S to s ms to s bs 10 improprety in these
men going into the syndicates. Others,
Of course may differ from me. But 1t ts
thing I have thought. Of seriously, because
for some time I declined to 60 into some
Of the syndicates.
Mr. Cromwell said that he knew that he
had right to invest his own money as he
saw at, so long as he was perfectly con-
scientious in doing IT, -
"The point is, said Mr.. Hughes that
yoH as an oosr %ssa your 4sssrd
to the Mutual Life Insurance Company's
investment, you do not think there Is any
improperly In your making money at the
same time out Of the transaction which the
M ,tual Life Insurance Company's partioa-
Mr.. Cromwell said that expressed bis
MI. McCurdy, Mr.. Juilhard and Mr.. Haven
were the persons Mr.. Cromwell referred
to as having belonged to the Japanese
syndicate.
MI. Hughes asked the witness whether
It wasn't a matter Of fact that members
Of the subcommittee OF the company's
finance committee are generally them
selves interested IL the Transactions to
becomes a party through syndicate par
ticipation, and Mr.. Cromwell replied that
they are -very largely
Mr.. Hughes requested Mr.. CROMWELL 70
prepare statement showing all tho syndf-
cate transa otions Of the company for tho
last ten yea RS; also statement OF the syn
dioates in which he had participated stating
the profit or loss involved. Counsel for
the committee said that he would like to
have also statement OF the syndicate
had participated and that II II was not
furnished he would have to get the informs-
ton in some other way
INTERESTED IN OTHER MUTUAL COMPANIES.
When asked to name the corporations
in which be was an officer and director Mr..
Cromwell was unable to remember them
all and had to be helped out by Mr..
Hughes: There were "a dozen or sto So
and director in the Guaranty Trust Com.
pany. He owns 400 shares Of the capital
stock. The Mutual company owns So4S
shares, which are carried at book value
Of sl,i2e,92o. Among the other Mutual
McCurdy, R. A. Granniss, Walter r. Gil
lette, Mr. Juilliard, Adrian Iselin, G. R.
Henderson, G. F. Baker and j. N Jarvie. |
Mr.. Cromwell testified that every member
Of the Mutuals finance committee, With
is Director in the Guaranty Trust Com
pany. The Mutual acquired its stock in
the company twelve years ago. Originally
1t held 10000 shares, The trustees OF
the Mutual acquired their holdings at the
The witness admitted that the outside
stock had largely been acquired by the
trustees OF the company for the purpose
Of controlling It. They wanted, he said,
to provide some PLACE where they could
The Mutual, the treasurer testified, car
ries on deposit in trust companies and
banks cash ranging in amount from 50 ,000,-
900 to SIS ,OO0.O One reason why such q
large amount Is kept on hand was to enable
the company to take advantage Quickly
cited as an instance the opportunity which
the Mutual had to take IS. 900 900 OF the |
Cuban bonds. Ip reply to question he
admitted that the company had taken
only - ,00O, 900 and that the Guaranty Trust
Company got the remaining 81 900 900.
Counsel for the committee wanted to know
why the Mutual hadn't taken an additional
81 600 900 II the bonds were good invest
ment. He said that the Mutual didn't
want to carry any more OF the oonds. IL
didn't think them safe.
Company, why wasn't 1t safe Tor you? A. We
didn't want any more OF the bonds. .
S oS sntss a he seef q
anty Trus: Company; y the Guaranty Trust
share the loss. A. Yes.
AN EAST SIDE BRANCH.
Mr.. Hughes inquired in regard to tho
Mutual's relation to the Mutual Alliance
Company. The witness said 1t was organ
lied on the East Side because several OF the |
officers Of the Mutual thought 1t would be
good thing, as many Hebrews we're IN
terested in the Mutual Its capital stock OK
Ii 4OlU,VV. ~ Vno AnSOAPo.ooss 49, 70 |
Ave years ago. The Mutual took $llo,500 |
OF the stock. Mr.. Cromwell said he owned |
100 shares and that Mr.. McCurdy and Mr.. |
Jarvie were also stockholders.
The Mutual has kept a standing deposit |
OF $3.50 600 in the company for the last four
or Ave years. for which II gets interest at
the rate Of q per cent. The Mutuals de-
post With the company has been as high as
$500, 900, the amount Of the company's
capital stock. With the Guaranty Trust
Company the Mutual keeps deposit rang
ing from $500, 600 to 81. 500, 600, for which
. per cent. also is paid. Tho Guaranty
Trust Company paid q dividend Of 20 per
cent last year The Mutual Alliance Com
pany, the witness said, never paid a divi-
dend He admitted that there was prao-
tically no market for it's stock, but the stock,
he asserted, was absolutely good.
The Mutual Life Insurance Company also
owns i,75o shares in the Morristown Trust
Company. President McCurdy's home is
In Morristown. This company is capt.
talized at 5000, 900. The witness said he
held 100 shares and that President McCurdy
also was q stockholder, a. we'll "a Charles
r. Henderson, G. q. Haven, Adrian Iselin,
Jr., and Mr.. Jarvie. The Mutual company
carries deposit Of $3.50 900 with the COM