The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-09-15

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they wouldn't want to take 20 large, a volume
ana Of se tho ri s
he Ting G sntraisy I Yes H sir '0a''''
railroad company to make an arrangement
satisiaeto Dry to the bankers' A. They all
q. The s result e. would be that the bankers
would get control of the iasue. and then the
Insurance Ira companies 10 get In would have
q. That Is about the way it worksy 4. Yes.
! sir, and the bankers generally let the insu rance
companies In on what you might call the hard
Mr.. Hughes wanted to know whether
! the bankers didn't realize that it would
greatly assist in the fotstion OF the seouri-
ties II institutions which have reput alton
for conservation take large blocks, and
the bankers would let the institutions have
the securities il they didn't think so.
Mr.. Baker said that he got his partici-
pations in syndicates through his position
as an officer OF the First National Bank.
g. And the relation Of the Mutual LIE
9. AZ the same time the fact remains that
In several syndicates tosethor' A. Yes. sir.
Mr.. Hughes asked the witness to furnish
the committee a statement OF his particle
pations In sypdicates in which the Mutus
was interested, sohwing the profits In each
transa ction.
MUTUAL.
Treasurer Cromwell Of the Mutual Life
asked permission to say something in re-
gard to the Mutual Life's efforts to pur-
chase bonds from the vendors. A few
years ago he made an effort to purchase
do III {1,, t1A
company, and although the Mutual Life
was III a good position to ask favor from
the railroad company. q representative OF
the company told the Mutual frankly that
the railroad couldn't afford to sell its bonds
sites Of the road required that the bonds
should all go through the bankers hands.
Q. The railroads must keep with the bankers
in order to float their bonds? 4. Yes.
in with the bankers in order to get the invest
ments they want Ht low prices? A. a. That Is IT.
q. BIT a what do You think the reason is for
this? A. Why. to Keep market for the bonds.
Mr.. Cromwell said he thought the aota-
ton Of the bonds would be carried through
successfully without the aid OF the insurance
companies.
Why said he. they (the bankers) sell
more bonds in Europe in q week than We
buy in month. This is q very big world.
Pardon me for saying It,
The witness testified that the Mutual
Life carried a cash balance Of about 500 900
with the Morristown Trust Company, in
which the insurance company, a. well as
several Of its trustees, are stockholders
Speaking Of the Mutual Life's relations
generally with the trust companies, MIR.
we overlook everything in the trust
aYou mean,' said Mr. Hughes, that you
look over everything in the trust COM
panes.
Yes replied the witness, somewhat
embarrassed.
BUYS MoRToAoRs SECOND HAND.
Mr.. Cromwell said that the Mutual Life
had an agreement with the Title Guarantee
and Trust Company, In which the Mutual
Life as we'll as some OF its trustees is stock
holder. to take over - 900 900 Of the com.
company to guarantee the mortgages and
the Mutual Life reserving the right to
reject them. The Mutual Life got ~ per
cent. on its money In these transactions.
Mr.. Hughes asked Mr.: Cromwell to
disbursements for advertising, printing.
stationery and postage" were so much
larger than those Of either the Equitable
or New York Life last year. The Mutuql's
figures for these expenditures are N,l34.-
same purposes sssl .2s4, and the Equitable
s772 900. Mr.. Hughes took the names Of
the persons In the Mutual Life who are
responsible for payments on this account.
Mr.. butcher. describing the methods of
the Metropolitan Life in conducting its !
business, admitted that there had been |
a good many purchases Of securities Of |
which he as a member Of the finance COM |
mittee knew nothing until they were brought !
before the committee for approval. Mr.. !
butcher aid that the only reason he could |
give for the companys having bought |
such a large amount Of it's securities from |
Vermilye 4 Co. was that the transa ctions |
were most satsfa Glory.
Mr.. butcher said that he participated !
in a Western Pacific bond syn
dictate to the extent Of $50, 0Oo The Metro
politan had a participation in this syndi-
cate q 5000. 600; He had taken : par
ticipation also, he said, In a Wabash
syndicate for $50, 900 in which the Metro
politan was interested, hut he had turned
his interest In the syndicate over to the
Hamilton Trust Company.
Sometimes, the witness testified, Yer
milye d Co. bought for the Metropolitan
as brokers doing q Stock Exchange bust
ness. When the Metropolitan decided II
wanted certain stocks It gave orders to
Co. to buy In the market at
the price named by the company. That,
however, was not the usual method. Usu.
ally the Metropolitan bought from YER
milye 4 Co. as representing the vendors
The hearing will be continued this morn
ing. ,