The daily morning journal and courier., 1905-09-15
MUST STAND IN
 WITH THE BANKERS

(Continued from First Page.) new issue belonged. held out and the Mutual obtained it's 5000 shares at an average price of SSo 1-l0.
 The sale was entirely by individuals and there was no syndicate. The trans action was left entirely to William Babcoek with absolute confdenee-he was dealing fairly with the Mutual.
 Mir. Hughes asked how the increases of bank balances were controlled.
 'I control them" said Mr. Cromwell.
 He recalled that in one instance he added s1,000,O0O to the deposits in the Guaranty Trust company, because the trust company needed the money for a special purpose. He could not remem- Der what was the special contingency, but he promised to look up the records and disclose it. This case, he said, was in no wise unusual.
 MT. Hughes asked if nobody else had a word to say about increasing de- posit.
 "No, I do it." was the answer. T take the responsibility.
 MT. Cromwell said that the company's business could not be conducted ef- fectively unless someone had the power to regulate the deposits. But finally, he added, the finance committee must approve all his actions, for all the bank balances were scrutinized by the com mittee every week. His own power of regulation, therefore, was temporary, and anything he might do could be re- voked within week. Mir Cromwell was asked whether he increased or decreased his holdings in the debentures of the United States l Mortgage & Trust Go. to assist the trust company. He replied: Not entirely so: it is partly to help our whole western clientele to know that through one of our companies they can get money on bond and mortgage" "The advertising, printing, stationery and postage accounts of the Mutual is $1,134, ,SSS.76: of the New York Life it is $S5t, ,2S4.6S; for the Equitable, S772,645.5O. 1 Can you explain these very large amounts?"
 q know nothing about it, Current ex-
 penses of the Mutual are under spe- ell committee"
 ''Is. the same true of the legal ex- i penses to the sum of $364,254?"
 ,"I have nothing to do with it. It would be under the law department" \ DO you as subsidiary companies
 make advances to agents?"
 No, sir" I "4ow are advances made to agents
 by the Mutual
 "It is done through the general
 agents of the departments, but I under
 stand the amounts are not large"
 Docs the Guaranty Trust Co. or the
 United States Mortgage X Trust Go
 make loaEs or nortgages?' ...
 Not to my knowledge; would moi
 like to swear to Il" ...... '. You have an account with the Amer
 ican Exchange bank D. ..'.
 eve have had it for nearly genera
 ticn." . "You do not receive any interest?" ''None whatever; it's president is ont
 of our trustees, and he tells us frankly
 if we wanted interest we must go else : where, but we have not thought it gra' cious to close our account" ........ It was at this point that MT. Dutchel
 was called. While his testimony devel' oped nothing of a startling or sen l sationaI Eature. several statements made by the witness were of passing ; interest. One of these was that thu company has no treasurer, the cashier $ acting in that capacity. The list of stock and secrities held b. - the Metropolitan on January 1, 1905 7 was marked for Identification; also tn
 lists of purchases and sales of secur
 ities and syndicate participations in tn
 last ten years were produced and put il
 as evidence.
 Of SIS, ,O00, 900 of the securities held b!
 the Metropolitan about $65,OOO.OO0 wer , purchased from Vermilye & Co. an , W. A. Reid & co. The reason MI | | Butcher though why so great al 5 amount Of business was done witt | these, was because they have done bus F mess satisfactorily, the company deem ed it advisable to continue with them s MT. Butcher said the president usual t did the purchasing of securities for tn 7 Metropolitan. a% |, It appeared from the questioning tha t the president of the Metropolitan ha 3 sole discretion in which banks an l trust companies deposits should | s kept.
 l ''What is the sum deposited in tn l Hamilton Trust So.?' g Between $4OO,000 and $500,000." :. "Does the Metropolitan hold stock i a the Hamilton Trust Coz" y About s1O0,OOO out of $5OO,OOO tot; g capital"
 - "What interest does the Metropolita t receiver"
 d 1.-TWO per cent. There is an agreemer = as to the withdrawals, but the accour d is not very active" n MADE A HIT. - The four Mortons in Breaking Int