The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-09-15
COMPANIES HAVE
GREAT c n: 1 EXP P['NSE
Some Large Figures In
Life insurance
Investigation.
BOUND TO DEAL
WITH SYNDlCATES.
Treasurer Cromwell, Of the Mu-5
tual, Says the Bankers Con-
troll the Situation-Tes-
tirnony That the Met
ropolitan Has No
Treasurer.

NEW YORK. September 14.-When
tho special executive, committee prob-
ing the I've insurance companies meth
DDS adjourned to-day. Chief Counsel
Hughes had finished for the time the
examination into the Mutual Life lnsur-
ancc Company. and the Metropolitan
Lfc Insurance Company was started on
when Silns B. butcher. a director and
q memebr Of the finance committee, was
called to the stand.
Mr.. butcher was questioned regard
Ing the securities held by the Metro
politan and as to the syndicate opera
tione OF his company.
He was asked the salaries OF the COM
4 pnny.s officers, but he could not remem-
Der them. He will present the list OF
officers salaries to the committee To-
morrow. Mr.. butcher was s'lll on the
stand when the committee adjourned.
Earlier In the day. Treasurer Crom-
well had taken the stand to continue
his explanations OF the Mutual Lif6's
relations Of the Mutual with trust COM
panics, MIR. Cromwell stated the inter-
cstInE fact that on tile purchase OF, sl,-
120. 900 shares of the Title Guarantee
& Trust Company. the Mutual had re-
ceived in dividends sl,220,0oD, making
these shares cost nothing and realizing
ii profit. Nj. Cromwell stated these
shares were now selling at over GOO
Couldn't Buy Direct.
On the advantage OF dealing through
syndlcatcs In preference to buying
rn nilrond bonds direct. Mr.. Cromwell su!d
N he had actually tried 10 buy bonds d +
4 rcctly from railroad company. lie
went To his friend. Stnyvesant FISH.
president Of the Illinois Central railroad.
."Mr Fish told me he could not afford
to sell bonds to the Mutual. he said.
."rhcn the truth is that the railroads
must stand In with the bankers ~ ordef
to sell their securities and the lnsur-
ancc companies must stand In with inc
bankers in order to buy ht low prices q
MIR. Hughes asked.
"EXactly.' -,
.Thc bankers control the SITUATION e
..No doubt OF that.
In his testimony after the recess, IN
& explaining the matter of purchase or
th,, Rnnk OF California stock. Mr.. Crom-
well said the issue price of the stock was
K sCn NLr. Cromwell hoped to get the
shares at this figure. but In the end, the
ssharcholdcrs. 10 whom under the Gail
fornia law, the rights to the new issue
belonged held out and the MUTUAL op-
tnined It's 500 shares at an average
Price of $3.50 $40. The sale was entirely
by Individuals, and there was no syn
dicate. The transaction was left entirely
to William Babcock. with absolute con-
fidence that he had been dealing tall
with the Mutual
Control Bank Balances.
Mr.. Hughes asked how the Increases OF
decreases of bank balances were con-
trolod.
II control them" said Mr. Cromwell,
He recalled that III one Instance he
added 81, 100000 to the deposits IN the
Guaranty Trust Company, because the
trnst company needed the money for .
sneclal purpose. He could not remember
what was the special contingency but ne
nromiscd TO look up the records ana
disclose it.
.rhc advertising, printing. stationery
md postage accounts ofGthe Mutual is
81 .134, ,Ss3 76; OF the New York Life it IS
Ss51, ,2Si.GS, for lne EauiIt,pte " ''-'.'S
Can you explain these very large
amounts?" e,,,..
~ know nothing about It. Current en-
ncnses of the Mutual are under speciai
committee" ! -
"Is this true OF the Legal ehpeiises ~
the sum OF s3G4,254?"
"T have nothing to do with It. 1t would
be under tho law department
Has No Treasurer,
If was Mt this point that Mr.. butcher
was called While his testimony deVel,
oped nothing OF q startling Or sensatlonhl
nature, several statements inade by ne
witness were OF passing Interest
ono OF these was that the company hhs
no treasurer, the cashier acting III that
capacity, ,,o,., ~.
tho metropolitan, s65,0o,ooo, were pur-
chased from Yermilye and Company and
". A. Reid and Company The reason,
Mr.. butcher thought. why so great an
amount OF bushes was done with these
firms was because they have done pusl-
ness satisfactorily, and the company
deemed it advisable to continue Wltll
them, Mr., butcher said the prealaeht
usually did tho purchasing or seclrltles
For the Metropolitan.
1t appeared from the questioning that
tho president of the Metropolitan had dis
erection In which banks and trust com-
panes deposits should be kept,
GREEK SAILORS IN JAIL