Arizona republican., 1905-09-15
New York Investigators
 Reach the Metropolitan
SALARIES OF OFFICERS
A Prominent Official of the Company Had FOrSOtten-Mr. Cromwell of the Mutual Life Speaks Further and FaVOrably of SyndiCateS.

New York, Sept. 14.-When the Spe- cia! legislative committee probing the life insurance companies methods ad- jouIned today Chief Counsel Hughes had finished for the present the ex- animation into the Mutual Life Insur- ance company and the Metropolitan Insurance company was started on, when Silas B. Butcher, a director and a member of the finance committee was called to the stand. MT. Butcher was questioned regarding the securities held by the Metropolitan and as to the syndicate operations of his company. He was asked the salaries of the com pany's officers but could not remem- Der them. He will present a list of of ficers' salaries to the committee to- morrow. MT. Butcher was still ques- tioned when the committee adjourned
 Earlier in the day Treasurer Crom- well had taken the stand to continue his explanation of the Mutual Life's syndicate operations. Tn explaining the relations of the Mutual with the trust companies MT. Cromwell stated the in teresting fact that on the purchase of s1,120,0 coo worth of shares of the Guar anty Title and Trust company the Mu- tuaI mad received in dividends S1220.- 900 making these shares cost nothing and realizing a profit. MT. Cromwell stated that these shares were now sell ing at over 500.
 On the advantage of dealing through syndicates in preference to buying railroad bonds direct, MT. Cromwell said he had actually tried to buy bonds directly from a railroad company. He went to his friend, Stuyvesant Fish. president of the Illinois Central and MT. Fish told him that he could not afford to sell the bonds to the Mutual.
 In his testimony after the recess, el- plaining a matter of a purchase of Bank of California stock, MT. Crom- well said the issue price of the new stock was $50. MT. CrOmwca hoped to get the shares at this figure but in the end the shareholders. to whom under the California law the rights to the new issue belonged held out and the Mutual obtained its 500 shares at an average price of $50 S-10. The sale was entirely by individuals and there was no syndicate. The transaction was left entirely to Wm. Babcock with ab- solute confidence that he was dealing fairly with the Mutual.
 MT. Hughes asked how the increases or decreases of bank balances was con- trolIed.
 "I control them" said MT. Cromwell.
 But finally he added that the finance committee must approve all his ac- tiOns for all the bank balances were scrutinized by the committee every week. His own power of regulation, therefore. was temporary. and any thing he might do could be revoked within 2 week.
 MT. Cromwell was asked whether he increased or decreased his holdings in the debentures of the U. <. Mortgage and Trust company to assist the trus, company He replied: Not entirely; it is partly to help our western clien- tele to know that through one of our companies they can get money on bonds and mortgages The advertis- ing. printing, stationery and postage accounts of the Mutual is S1,134,S34, of the New York Life it is SS51,2S5; for the Equitable $772,654-5O."
 How are advances made to agents by the Mutual?"
 ''It is done through the general agents of the departments. but I un- derstand that the amounts are not large"
 You have an account with the American Exchange Bank"
 'We have had it for nearly genera tion"
 You do not receive any interest?"
 Not any whatever. Its president is one of our presidents and he tells us frankly that if we want interest we must go elsewhere"
 It was al this point that MT. Butcher was called. The list of stocks and se- curities held by the Metropolitan on Jan. l. 1905, was marked for identifi- cation also the lists of purchases and sales of securities and syndicate par tieip Itions in the last ten years were produced and put in as evidence.
 Of S75,0O0,000 of the securities held by the Metropolitan about 5000, 900 was purchased from Vermilye and company. MT. Butcher said the pres- ident usually did the purchasing of se- curities for the Metropolitan.
 It appeared from the questioning that the president of the Metropolitan had sole discretion in which banks and trust companies deposits should be