New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-15

IL
rectors Of the right sort II these directors were
prohibited from investing in syndicates and ga
curities in which the Mutual had interests Mr.
Beck asked
o..Do you think that. by reason Of the trustee
In the investment Of your private means? A
o..Do you think II such restrictions existed, it
Of competent trustees? Al do not
This questioning reused sIr. Hughes who said
sarcastically:
Then come back. Mr.. Jarvie: want 10 ask
you now: is It condition Of your remaining a
trustee OF the Mutual that you may be allowed to
the Mutual?
NO" answered Mr.. Jarvie
WAS ALSO N sYNDIcATEs.
Mr.. Hughes then called Charles R Henderson,
Of Henderson Brothers a member Of the Mutual
finance committee who testified that ne had par
ticipaed through his firm. in several syndicates
which the Mutual interested. but that there
had been relation between the proceedings OF
the concerns. He declared that the syndicate was
q necessity 10 large a concern as the
Mutual George +. Baker. president Of the First
National Bank, q trustee IN the Mutual Life. and
an officer IN number Of subsidiary Mutual eom-
panies. the witness. Mr.. Baker testi-
fed 10 the value Of the syndicate.
= Suppose the Mutual. the New-York Life and
ths Equitable united" Mr.. Hughes suggested.
Couldn't they then deal directly with the railroad
hS--H A-N~ 1900 -
cates?"
They might IN a small issue but not otherwise"
2Ir Baker said that his bank had been interested
in some syndicate deals to which the Mutual az
a party. although there had been no relation be-
tween the two concerns. and promised to furnish
statement
Frederick Cromwell was then recalled and re-
sumed his taIk about syndicates. He said
Two year. ago thought this syndicate business
c. SCh Illinois
-Four OF our trustees were in that railroad; pro
0 hat hq he ceu ae3%d ae3 H he
goodwill OF the bankers Then the attempt emp was was
directly TO the stockholders It failed lamentaeiy.
and then the company came ha1 III haho' u 'hs
bankers for help.
..rY,. Insurance company and tbs railroads
both at the small end. them commented Mr.
Hughes.
No"
But the brokers can get along without YOU ana
YOU can't get along without themf
1T suppos. So
Mr. cromwell was then asked to explain a deal
in Missouri Pacific, in which profit on transao-
ton OF $4,000 turned over to the Guaranty
Trust Company and the United States Mortgage anu
Trust Company After some hesitation Mr. Crom-
wei, explained that the Mutual was accustomed
10 deal in this class of securities and felt moral
obligations not TO participate in profits from It,
After running down list Of transactions with
trust companies Mr.. Hughes inquired if certain
them were TO permit the trust companies 10 go into
transactions for which they needed more money.
mo" was the answer. but if the Mutual pro-
vdes the sneus you nay be sure the transaction is
a safe We overlook everything IN trust
company"
81 guess you mean you look them over. don't
your inquired Mr.. Hughes amid general laughter
The purchase OF five thousand shares Of stock in
the Bank Of California was next discussed It
appeared that at first the proposition that the
MurIla fshn hay he az
directorate OF the bank asked that this be raised to
$50 TO satisfy stockholders and that ultimately the
block was purchased at $3.50 So Mr.. Cromwell test-
ned this was all done for the Mutual by W. 8.
Babcock. and that the Mutual wished TO open a
connection in California owing to their large in
terests there.
The final point on which Mr. Cromwell ex-
amined related once more 10 the subsidiary trust
Mr.. Hughes inquired about a reduction
in the holdings of the Mutual OF debentures Of the
United States Mortgage and Trust Company OF
total Of 10000, OF which the Mutual had held
pToba Div because they wished to reduce holdings
he again insisted that while the Mutual assisted
valuable return services IN permitting the Mutual
seldom sold bonds to the trust company
Can you explain why your company's expenses
0r 81 @ whe tsos Sh& Of spR Re 19[
were only s85l O0e and the Equitable s772coo?"
VINO has the responsibility for the legal ex-
The regular expenditure committee"
CONTROLS OF DAILY BALANCES.
Al the close OF his testimony Mr.. Cromwell de-
clared that he solely responsible for fixing the
daily balances with various trust companies OF
Mutual funds This was. OF course. subject to re-
vision later when the finance committee met, but
their dsapproval would only take the course Of an
order Withdrawing the deposits after they had been
made Nj Cromwell insisted that It was necessary
for to do this.
silas Is. butcher president of the Hamilton Trus:
(To-D md thar ~
Of the Metropolitan Life. the next witness
and his examination lasted fog three hours Mr..
butcher testified that the finance committee was
accustomed 10 hold four regular meetings year
He declared that there other special meetings
and that a member Of the committee had TO be
present whenever the vaults were opened. Joseph
p. Knapp and General Thomas l. James were the
other members OF the committee. Mr. Hughes took
up copy OF the minutes Of the finance committee
and selected an item noting the approval by the
COMMITTEES purchase OF stock by the president
He asked:
Q Is il far to assume that prior to this pur-
chase the finance committee had nothing do with
The matter-tha il was entirely in the hands of the
o.-Weli. What did they have to do with tr A
They n IN were ERE frequently consulted
Q.-Have purchases been mace that you didn't
n!ttee as completely Ayes
NJ. Dutche- explair.ss tina. the members Nigh:
give individual approval and then make a formal
approval at a regular meeting Mr. Hughes then
took the syndicate list and brought out the fact
above mentioned that the vast percentage OF tbs
dealings had been with Vermilys = Co. and ". a.
Read y Co. Mr.. DuIchec testified also that W. A.
Read had formerly been associated with Vermily
& Co. Ny Hughes pressed the point abou. the
reason for this, but got no mora specific answer
than il q custom tina. had been followed for
many years, and that the bankers had always done
he business satisfactorily
who does the purchasing for the metropolitan? '
inquired Mr. hughes.
The president. usually"
Mr.. Hughes took item the syndicate list
that OF SiO00opO partcips ton IN Atlantic Coast