The sun., 1905-09-14

CloCo uuVsNo6c W ussAS
the exchange at once.
q II is an object with us to have
these p;anos reach u In time to
be Ahposei Of At our approaching
Fall Sale Of Used Piinos.
The Aeolian Co.,
Aeolian Hall, 36a Fifth Ave,
Near 34th Street, New York.
It Sl2,os7.so. Counsel for the committee
asked the witness to explain how this had
been charged on the Mutual's books to 9
that the Mutual had block Of Atchison
preferred stock and that the profits from
the syndicates were credited against the
preferred stock to reduce It's book value.
In this syndicate the Mutual neither with
drew any Of it's underwritten bonds nor
The Mutual had $500 900 interest In
the Pennsylvania Railroad shares syndicate
In which Mr.. Cromwell held 500, 900 under.
writing. In this syndicate also the Mutual
acted simply as an underwater. Its profit
was $75,1l5 as compared to Mr. Cromwell 8
tl,64e. and this. like the profit in the Atchi-
son syndicate was oreditedagainst the price re
at which Pennsylvania stock held by the
Mutual was carried on its books.
In the Oregon Short Line As syndicate
the Mutual participated to the extent OF
81 100000 Mr. Cromwell had $4,000 in
this one. The Mutual bought %, 100000
OF the bonds. 1900, coo being acquired in
exchange for former issue Of Oregon
Short Line bonds and 81 ,000, 900 being pur-
chased at the public Offering.
q, This purchase contributed to the profits
made by the syndicate. in which you were Q
q. You boueht n. none ne of the seouritiesa 2
q. yon y pu. up no 7, money, me A NJ; e.. .,r
The Mutual made $20,O37 In this trans
action.
LET IN THI TRUST COMPANIES.
1t was in the Imperial Japanese bond
syndicates that the Mutual allotted por-
ton of its participations to trust companies
In which it is interested. In the first series
syndicate the Mutual had participation Of
ThGh hd hits /, g9ss at So II seted aed
Trust Company, 1900 to the Guaranty
Trust Company, 500, 600 to the Fifth Avenue
Trust Company and 100000 to the Morris;
town, N. j.. Trust Company. The Mutual
kept the remaining $S,0OO,0O0.
united hy stale. e ySS msss an and S0%sst e
pany' A. Because we had large interest
Q. You thought you would let that company
mako some money for itself2 A. Yes, and
for the Mutual also.
Mr.. Cromwell asked permission to ex-
plain the attitude Of the Mutual Life to-
ward the trust comlaniee: He said that
companies because 1t had to have larger
hanking facilities. 1t wanted some r lace
where 1t could safely maintain Its large
cash deposits. 1t was almost imperative
on the company to provide for itself bank
been obliged practices lly to enter into the
banking business itself. The result Of
the Mutuals having gone into the trust
companies was. the witness eaid, that safe
depositoriee have been provided for the
bd ase ns pra or
than SIC, GOO 900 to the Mutual's policy
holders. 1t goes without saying, Mr..
Cromwell added, that the Mutual will do
everything it can do properly to help these
'0TfS Yhe siiotmsns aU of $500 900 to the United
States Mortgage and Trust Company
said Mr.. Hughes, was for the purpose Of
allowing the company to make profit
In which the Mutual Life, as the owner Of
little over half the company's stock.
would have half and the Others interested
The witness answered .Yes."
In the japanese syndicate the Mutual
Life purchased s., SEQ 900 Of the bonds
at 9s.52 from the syndie ate managers and
thus contributed to the profits distributed
among the trust companies and the other
participants.
In a second syndicate in Japanese bonds,
first series, in which Mr.. Cr mwell did not
have an interest, allotments were made to
the trust companies.
In the Japanese bonds. second series.
syndicate the Mutual participated to the
extent Of $500 900 and bought at public
bonds, in this instance also contributing
TO the profits Of the underwriting syndic ate.
It's net profits from this syndicate operation
"1le In the ~ case Of the Chicago, Burlington
and Quincy S ,s %sds
States Mortgage and Trust Company,
the Morton Trust Company, the Fifth
Avenue Trust Company, the Morristown
Trust Company and another company,
amounting In all to q. 10000 The Mutusls
Offer in tae he 'yndiSste aSss I'VE IVES for q
list OF transactions acknowledged BY the
Mutual treasurer he asked whether he had
ever been interested In any other syndicates
from which the Mutual had bought bonds.
The witness said he hadn't.
Mr.. Hughes wanted to know whethe
tions in which securities were handled in
joint account with bankers, and the witness
repl ed
@. Has the Mutual ever been engaged In
In which they buy with the
idea Of selling quickly FOR investmentS A.
MOI We buy for Investment.
Q. Buy for investment and then change
your mind and sella A. No, We never buy
In conjunction with anybody. Any transsc.
tion which the Mutual has 10 on its own 40
count and for itself.
sECURIrIKs NOT LISTED.
Counsel for the committee wanted to
know also whether the Mutual had In its
possession any securities not appearing on
It's ledger. There were, tho witness said,
only two, and they were not entered, because
they were regarded as practically worth
less. They arc Of slight value, one being
Q mortgage interest and the other q $500
interest In the common stock Of traction
company.
Mr.. Hughes asked Treasurer Cromwell
about the Mutuals participation In the In
ternational Mercantile Marine syndicate.
Mr.. Cromwell said the company took from
the syndicate It's entire interest, 81 500 900.
Mr.. Hughes wanted to know whether that
amount was carried In the hooks and MI.
Cromwell said It was but S5OO, 900 had been
charged to profit and loss account on the