The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-04
THE INSURANCE COMMITTEE.

A STATEMENT BY THE ACKNOWLEDGEMENTS
HYDE, OF THE EQUITABLE COMPANY, GIVES
SOME PARTICULARS OF THE ToNTINE POLL
CHS.
ALBANY, April 8, 1871
The Insurance Committee resumed their investiga-
ton at half past three O'Clock this afternoon.
Mr.. Cowdiu presided, and said that the committee
had devoted great deal Of time TO the investigation
and had taken ull testimony regard to the subject
The members have received number OF anonymous
letters OF denunciatory character but very few offer
ing any valuable information suggestions as to egs
ative remedies He believed the country greatly
alarmed by the outc"mings OF the investigation, but
he was ANXIOUS that policy holders should not DO
wrongly informed that their money had been thrown
away as tho committee has still the highest confidence
in many or the larger companies He desired, there
TORE to have testimony hereafter taken refer solely
| to the facts Of life insurance management.
Mr. Skinner read letter 10 the effect that Q society
| calling itself the Order of United Workmen
gagged taking out insurance policies that were worth
less by OF the disturbance among policy holders
Mr. Weyant desired to say that he did not wish II
to be understood that he or The committee had done
anything the nrthcrance OF this Investigation which
THE PRESIDENT OF THE EQUITABLE.
Henry B. Hyde, President OF the Equitable, being
Called testified that he could not give the total amount
| OF Tontine policies in his company. They are loaded
from thirty 10 forty per cent the balance 10 reserve
upon the policy. This system was commenced seven
eight ago The Tontine reserves kept with
the reserves other policies; but We estimate what
should be ASIDE tor the Tontne policy and sep
arate actual kept. He declined TO 60 into
detailed statement at this time, saying u would be
too complicated The Tontne theory Is as the ordi-
nary life rate, reserving tho that is reserved
under other policies; but the surplus Is held and
/ divided among the policy holders at the end OF the
| Tontine period, when varies from ten 10 twenty
| years. II ono of the Tontnc policies is for
/ feted tho reserve goes 70 those which are not
forfeited. It would require an actuary to explain
lot t.a NhptCo anff hn
ment is to be published in few days as TO the amount
OF held upon tontinc policies and the witness
| very positively refused TO guess at IL
| O. Exclusive OF the loading upon the premiums OF
the ontne poces has the reserve ever been used for
Mr. Hyde-Pease state things correcty-you get
the matter all wrong l will say that the reserves
used for any incorrect purposes we have 10 use The
legal required by the State the tontine fund
bears the common expense OF per cent upon all the
premium receipts, say about twelve or thirteen per
cent; premium would consist OF the reserve and
the loading; know which is tontine reserve and
which the ordinary life, although We keep the
funds together; In accounts the two kept sepa
rate the surplus upon all the tontine policies is about
ST. $50, 600; the reserve in our company never
to pay anything; did not five per cent OF
been declared when there were no funds
in tho assets pay our Say y. dy o
means Of knowing how many tontinc policies
were forfeited how much was tho amount Of In
Them information to the amount OF reserve
upon lie policies which have been forfeited no por
i
other purposes in the reports the State supcrn.
tendent the witness thought the company stated
the tontine reserve separate rom tho lie re-
/ serve, but copy OF the last report
beng shown him he could not ind II In that paper,
and seated he does rccollect IN regard TO ~ tho
ascertaned for 1876 separate from the lie
reserve and also at various other times, but cannot
specifically; presumed there were entries Of
the amounts made in the panIes' books cannot
approximate the amount OF policies forfeited In 1876
the amount Of surplus; part Of the surplus
| upon the tontino policies has been used for
i
have been paid except from the right funds; our
surplus funds from all classes OF policies 50 500 ooo
Mercantile Trust Company have an Office In tho
Equitable Building, witness STOCKHOLDERS and drcc-
III its capital stock S.. 600 900; have been
tor about seven years; a small amount Of
stock standing in his name previous
sufficient TO qualify him director. The company
moved into the Equitable Building about seven years
ago. have had other office In the business OF the
company is lending money on farms n me " est and
/ Equitable has no loan IN the MERCANTILE u holds a
majority Of the stock in III would cast .he
vote OF the Equitable upon thor stock In that
company; the Equitable first purchased S35O,OO0 oil
the stock OF that company abou, years ago at par;
TINS has Increased and cash paid tor the increase
wnen the stock was increased took 100000 more
of again at par the Mercantile has paid seven per
cent dividend and now pays I'VE pr cent; cannot
received anything from tho company on ac-
count OF connection with the Equitable;
compensation from the Mercantile; no
member OF my family living old enough 10 oc-
cupy any position; no relative Of mine, directly or IN
directly, occupies any position IN The Mercantile there
rs safe deposit company IN the buildng have
$4,000 worth Of stock In that; the whole stock Is
$500 00O II was organized two years the Equitable
holds no stock 10 NJ paid Tor my STOCK ~ cash JUS
business Is to store valuable packages II pays So 600
year rent Tor about NTH sixth OF the basement
and sub. cellar of the Equitable Building am dircc-
tor, but receive compensaton the Equitable has
loaned money TO IL or TO the Mercantile Trust Com
PAW, has II purchased mortgages or Dor
| rowod money or securities from either.
q. Arc you stockholler In the Universal Lilo In.
| surancc Company a.. am. But 90 not hold a con
| trolling influence IN the stock
Adjourned until tomorrow morning.