New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-14

now are sloO,oo0OOo year. When our receipts
for us 10 buy from bond dealers and nav the sue
cessive profit that might come with brokers but
ously large blocks Of securities except as thew are
fo2ted by these comeina ions Of capital popularity
get investments and get them in sufficient size
our investments without syndlcates and we are
partners IN every syndicate which we go into.
syndicates would not be able to invest our funds
EXCEPT BY wing in small quantities and paying the
successive rroHte OF middlenen.
ask you. Mr.. Hughes. and the committee to con-
have over slO0 ocoo00 invested in bonds and mort
Of finding additional investments for our large ac-
cunuletions OF funds That is the condition II is
exhibits are here which show how have to en-
nloy it. Our investments are such that when Mr.
and honored bank president in his day in New
invest only in securities in which Mutual Life
Insurance Company had invested. That is the way
transactions Of Soc ooao6S a year in the Securities
bought by this company without using syndicates.
To this statement Mr.. Cromwell added. at the
suggestion of attorney, explanation for the
syndicate
I'VE get the ground floor prices, instead of the
third or fourth nand prices"
Then followed long and intricate discussion OF
a syndicate managed by speyer & Co, which
handled $25 0o000 par value of Cuban bonds. These
bonds were sold to the first syndicate So, and
the Mutual IN this syndicate. The bonds were
then transferred by formal proceeding to a sub
syndicate at 81 The purpose Of this sale, accord
ina the witness merely TO make market
/ was suggested by member OF the committee
subsequently that the purpose of Mr.. Hughes in
dwelling this to show that Mutual money
was employed TO help in wash sale" since the
purchase OF these bonds this advance would
necessarily affect the market. From the second
syndicate the Mutual took ss50O.OoO of bonds, and
from the third $lS75,0O0 subsequently permitting
$4,000 be sold, and taking their profits on these
While the second and third syndicate purchases
were al an advance over the original So the fact
was finally shown that the Mutual received its
share in the prots and thus actually paid only 50
In discussing this Cuban deal Mr. Hughes brought
out two ponts-7rst. that James Speyer, of Speyer
& Co.. from whom the bonds taken
ager of the syndicate, a trustee in the Mutual
company. and, secondly, that Mr.. Cromwell had
also been personal participator in this syndicate
IN the Jangle over this call was made James
Timpson, assistant treasurer Of The Mutual who
from time to time had aided in clearing up the
matter.
How much did you make personally in this syn
dicate?' Mr.. Hughes asked the witness.
y resent this inquiry into my personal affairs
said Mr.. Cromwell
But you invited Us to ask you for anything
returned Mr.. Hughes
I will prepare q statement Of all such transac-
tons then. said Mr.. Cromwell
Mr.. CROMWELLs PROFITS
On the resumption of the hearing in the after
noon, Mr.. Cromwell submitted full list of all the
syndicate operations. in which the Mutual Life had
participated and in which he had personally been
interested The list stretched over FIVE years and
showed net profit of 1881 s.. The list. which is
the key OF the afternoon discussion. follows: