New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-06-24
Stock Deals
Cost Mutual
$lO,OO0,O0O
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at being lawyer, but wasn't rs good
q buffer as you are. Mr.. untermycr."
To which Mr.. Untermycr replied,
1--WE won't classify ourselves. won't
classify you and you better not try to
classify me-"
Denies He is Director
Mr.. Peabody testified he was not a
director of the New York, New Haven
& Hartford Railroad, although his COM
pany held g large block of the railIoad
stock.
"Thank God" he remarked, there is
one sin that cannot be put to me-"
1t was shown that the Mutual also
had about 10000 shares of Pennsyl-
vania stock, $4,000 shares of Brooklyn
City Railroad, $4,000 shares Of the
Consolidated Gas Company, D., l.. 4
w. and many other securities. Accord
ing to the testim ony, the Mutual bought
$4,000, 900 worth of government bonds
for $15,121 $3.50. decline of $879,o0o.
The company in 1920 also purchased
foreign government bonds at cost
of $509,18S and railroad securities to
the amount of $4,179,792. the total
bond purchases in 1920 amounted to
S20,390,319.
A list of the banks and other finan-
cial institutions in which the Mutual
carried deposits and in which Mr.. Pea
body and other directors of the COM
pany were interested was also put in
evidence. In this connection it was
shown that the MutuaPs average in
come returns from stocks in the Period
between 1906 and 1919 was 4.73 per
cent and from mortgages Ats per cent.
Time of Disposal Extended.
When Mr.. Untermeyer pointed out
that the Legislature in 1906 had laid
down the policy requiring life insur-
ance companies to dispose of their
stocks and asked Mr.. Peabody if he
did not think that wise policy. he re-
Piled: con many accounts | think 1t
was"
1t developed that the five-year limit
within which the companies were given
to comply with this law has been ex-
tended from time to time. so that the
matter is now in the hands Of the Su
perintendent of Insurance. Mr.. Pea
body admitted having gone to Albany
at one time in favor of removing all
limits on the time within which the
companies were to sell their stocks.
"Do you. know how much the Mutual
Life would have saved for its policy
holders if you had sold these stocks
within the five-year period?" asked
Mr.. Untermyer.
"No," replied Mr.. Peabody
"Why have you not made an effort
to get rid of these stocks that have
been deteriorating until the losses to
the policyholders is enormous?"
eve have made Efforts" answered
Mr.. Peabody, and went on to explain
that the market for stocks like New
Haven and others was inactive" and
that financial directors of the Mutual
decided to hold these securities until
they could be "sold to advantage and
at the proper price in justice to the
company"
Action of Company Probed
Mr. Peabody finally became nettled at
this line of questioning and remarked
sharply, "Are you testifying or am I"'
"You will find out before long," came
back Mr.. Untermyer.
Mr.. Untermyer remarked it was
strange that in period of fifteen years
the Mutual could not find an opportun-
ity to dispose of stocks like D., L. & W.,
Pennsylvania Railroad and such others.
When Mr.. Untermyer pointed out that
if the New Haven stock had been sold
between 1906 and 1911 more than dou-
BILE than the present selling price would