New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-05-26

A. n.
amount OF all premiums received by said society thereon
Also tina book or books containing and showing all
insured by them have apsed, and the Of
the premium received by the SAID society thereon, and
purchase surrender value therefor during said period
rom the date OF the issue OF the first Tontne" policy TO
December 81, 1884.
Also, the book or books showing sill the Tortine ."
policies, matred or not that have been settled by the
anu Tle sum Of money credited To OF paid ont on each as
a Iontne dividend or as surplus, and the name OF
each person to whom the same was paid.
policies OF the said society the number of the policy tho
ecares the date of the issue OF the roey aud OF the
maturity thereof the amount OF the policy and the ire
" TOntine" surplls held account OF said policies
and the reserve so held.
Iontine surplus and credited 10 the general expense
fund.- or to any special fund.- for any other purpose by
Also copy OF the several books OF instruction or OF
advice to agents and Of the forms OF application for
circulated or issued by said society and the books Of
minutes OF meetings Of the directors OF said society when
the society after the adoption OF the TCntine plan Land
such other documents IN your custody may be re-
CURED IN the investigation Of the said subject.
j. t. WILLIAMS, Chairman.
In obedience to such subpoena Mr. Alexander appeared
before your committee and was sworn and examined.
The first hearing before the committee was had on
Thursday, the second OF APRIL at the Fifth Avenue
Hoe. Mr. Alexander did not up0n that hearing
Troduce any OF the books accounts or papers Ired TO
committee should hold its subsequent meetings in the
Equitable Building matter OF venence to hm.and
by the subpoena expressing himself and by his counsel,
willing and DESTROYS TO furnish tho committee with
the committee in Its work.
The committee complied with the request. and the sub
sequebt hearings OF Friday and Saturday were had at the
Equitable Building.
Your committee were unable to obtain from Mr..
Alexander or his company any OF the books mentioned
and described in the subpoena. save some books Of
instruction to agents and small book containing the
WHOSE tOntne period had expired ana the last named
book not until the close ut the examination on saturday
Your committee were persistent In calling for the
books but excuses were ready at each call- was Good
Friday and the clerks Saturday the clerks
too busy bringing up the work OF Friday, but would
furnish them at a subsequent period.
Alexander fun and complete list of the names Of the
officers and employees the home office, the amount or
sum of money paid to each ana on what account 10 the
end that it mgt be known how the item OF Zi5Gj0 set
down in the last annual report OF said company as sal
and other compensation OF officers ami other oihce
employees" was disbursed such list very important
and II Is believed would, II furnished, have thrown
food OF light what since transpred ia this house.
relation the continuance OF this investigation. But
your committee unable ~ obtain such list although
But your committee did ascertain the testimony
OF Mr. Alexander that the president Of the company,
Mr. Hyde, received an annual salary or $4,000; that
Mr. Alexander the vice president, receives $4,000; and
that the second ycepresident Mr. BorrOws, receives
$4,000 These figures require no comment by the
committee.
The neglect failure. and posponement Of the officers
Of this company to furnish the books, records accounts
and statements required when taken IN connection with
short the invest cation
ordered by TINS HOusepernlts OF no doubtful lhteIpet-
ton.
and behalf OF The ocers OF the company Ot Wiling
to AID and facilitate the Investigation were empty
and meaningless II not intended Tor still more question
ablo purposes But Notwithstanding these hin frances,
your committee ELECTED matter OF such import ana sg-
who voted 10 order the investigation; ana satisfy e
public that further investigation and corrective egsla
tlou are demanded for the public good.
The investigation WAS confined 10 the Equitable Life
Insurance Association. and the testimony taken esab-
II shes the following facts:
First mat the company have book OF minutes
and record OF any kind Of the proceedings had by the
directors or officers Of the company when the plan OF
Issuing tontiue policies adopted By the company.
Secofd That for some years 1.-THE exact numer Mr.
Alexander was unable to sael the accounts OF the reg
lie Insurance and the Outne insurance business OF
the company were not kept separate bat together; and
that their annual reports were made to the department
OF insurance upon the same plan.
Third. rhat ahough the prospectuses. circulars, aud
pamphlets issued by tue company inviting business on
tic tOntine plan clearly represented that yearly classes
were aud the account, OF each kept separate and
distinct while also the policies issued the tontine plan
i;v,ton Tor Insurance were contracts with the insured
to keep separate yearly classes that the accounts Of
the company not 81 kept but that all the tenyear
assured punched and their accounts kept common
and together without any the OF entry
thar true Of the fifteen and twenty-yeaT
policies That there I'm fact no yearly classes and
that the idea OF yearly classes IN the LANGUAGE of MI
Alexander. " popular mistake or deiasiGn ,ho
company in keeping the accounts OF tenyear policies
well nfeen-year and twenty-year policies each in
class insieadof IN yearly classes makes wholly impos
sibe person other than skilled actuary TO deter
any Of the tontne classes while IL is by
that the most skilful actuary could make perfectly
That tho assured at the end of his tonne period when
settled with must rely wholly upon me coed faith and
honesty aetuary aud officers of the company 10
whether he has or has not received the sum he Is
oquitaby entitled 20 have Mr. Alexander swears that
under this system II is something OF puzzle 10 know
how the adjustment "a reached" But thought II the
committee would ask the question OF Mr. Yhnsse their
actuary, he would make IL very plain" That it Is
easily ascertanable at tue emu Of every ten years exactly
what those persons share should be who live 10 that
fftua IN The win Z
perirnce OF that class, but the whoo class"
ence and who wa.strOugy endorsed by the counsel APP
pearng for companies on this Investigation as com
petent skilled reliable aud unbiased referring to the
E1uitabe plan OF adjusting the tontiDe dividends, test
ned don't how Il Is possible TO determine the
when il n ali mixed up together refer TO the
dineay Of securing his equity under the contract aud
knowing whether he has got IT.; ana some dincuIty IN
finding whether he has been treated honestly"
And that Is extremely difficult thing TO do" Being
of these accounts OF the tontine savings fund pol
icies were kept such manner that tables Of this
character treisrrng the tables IN Exhibit 90 pros
forned would It be possible TO furnish each beneficiary
at the end OF the Ontins period with this statement
which he any man OF ordinary comprehension could
understand rs how the results IN his CASE had been ar
rived afr lie answered;
Alt would"
II instead OF following this plan OF operation, the
persons insurng upon this plan are allowed 10 come into
the nteenyear class at tbs various years say from 1872
TO 1876 would then be possible 10 form table OF this
Alt would not"
To tho question;
"QThe tontne plan being carried on IN that manner
Inv nowng people year by year, after the first
formation Of the fifteen class would there In your
any by which account could be kept
and furnished as n result OF class any poeyhOder
an the end of the period which he ordinary
man and not asan aetuary could underestimate lie |
answered:
Al think not"
To the question:
"O-The fund being kept In the manner last described
understand TO be your Judgment that the result
offered to policy at the end OF the tODtlne
ueriod must be accepted by them on the faith aud |
OF the officers who gave themi" He |
answered.
"A.-lcs."
I'm due that II should be stated here that the proof
shows that Life Insurance Company keeps
lis accounts differently That lt keeps yearly classes aud
more nearly the contract with the assured.
Ann IL appears from the Statements furnished the
nv OF the Equitable Company, of