The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-24
TARBELL ASKED TO EXPLAIN.
HENDRICKS INTERESTED IN A
, $4,000 ADVANCE TO AGENT
Made 70 One OF the Leaders In Calling
the Agents Conference which Asked
for Hyde's Retirement More Talk
? Of Peace and New Control Of Society.

Tor Hyde's Retirement--MOre Talk
Of Peace and New Control Of Society.
State Superintendent OF Insurance Francis
Hendricks resumed yesterday his examina-
ton OF the Equitable officers. For more
than five hours he had Second Vice-Presi-
dent Gage +. Tarbell on the rack, and then
will be put on the stand again to-day.
Mr. Hendricks examination Of Mr.. Tar
bell is one Of the most important features
of the States investigation. Mr.. Tarbell
has been accused Of having fomented the
present controversy in an effort to Gust
flames H Hyde and secure for himself
the presidency of the society. following
the retirement of James W. Alexander.
He has been accused also Of gross irregu-
larities in the management Of his depart
ment, the agency department, especially
In the matter of rebates 1t Ia matter
Of common report that the socety's SELF
investigating committee has about de-
cided that Mr.. Tarbell will have to go. no
matter what is recommended in regard to
Hyde and Alexander,
Appe arances indicated that the exami-
nation was not at all pleasant for Mr.. Tarbell.
Soon after he entered the board room in
the Equitable Building at II O'Clock in the
morning. with the Superintendent. the
lstter's attorney, Michael E. Driscoll, and
Deputy Superintendent Hunter. the sound
If angry voices was heard by those out
side. Tarbell left the room at 1890 for
llnt heon, but was back before and was
on the stand from that time until after 5.
Mr.. Hendricks had been loaded with any
number of questions to fire at Tarbell
l.
a charge that had not been made public
concerning TarbeIl, and it took the vice
president by surprise. II was in regard
to advances amounting to S45, 600 that
were made by him to an agent in this State
Immediately prior to the general conference
of the agents and managers at the Savoy
Hotel in this city. One advance was for
$40 900, and that ame so easily that the
agent, it is said touched Mr.. Tarbell for
$4,000 more. This agent. according to the
information which Supt Hendricks has.
was one of the prime movers in the con-
ference which asked Mr.. Hyde to step out.
Mr. Hendricks wanted to know of MIR.
Tarbell whether 1t was fact that theipolicy-
holders of the Equitable had been put to a
large and useless expense by the issuance
of ssl. O49. 3l4 worth Of business in the year
1904 upon which not a dollar OF premiums
was paid He asked him what was the cause
of the apsing of 81 1854 policies in that year.
He wanted to know II it was beca use he had
as charged. countenanced the practise of
Relating.
He asked for information too, in regard
to the statement that during the last five
wears of Tarbell's management of the gency
force there had been a lapsing of policies
amounting to $399, 81 ,063 and whether this
did not represent big loss to the COM
pany in doctors fees and other expenses.
He asked Mr.. Tarbell to account for the
fact that the agents debit balances as given
in the report Of 1904 were only 81 ,5l4 1884,
when the advances made to agents, 1t ID
charged, were largely IN excess OF that
amount.
Mr.. Hendricks wanted to know further
whether it was true that since Tarbell had
been in charge OF the agency force Of the
$1,000 Of business upon its books, while to
another of the leading four companies the
cost has been only $3.50 :.
In addition to these questions regarding
the amusement Of his r department. v Mr.;
regard to the sl35, 900 which he receive I
from the society, Just before the present
controversy began, for his interest in future
premiums. Mr.. Hendricks asked him to
explain how az a director OF the society. he
could rightfully make this deal.
ua EfsTTf f. f iGs sta shs
FORMER superintendent of agencies. said
1T has been figured out that by Tarbell' i
system Of rebates and giving credit for
nearly all the first years premium the
company spends about 50 for medical
examination and inspection on each OF
has to show for it at the end of the year
is the policyholder' 3 note for about So 10
The company is losing thousands Of dollars
In its effort to make a showing
An unsigned statement was made public
yesterday outlining with considerable
show Of authority what was said to be the
present situation in the Equitable Life
society and indicating the most probable
future developments. 1t was reported that
this Ih me
who are working with him in harmony
plan. ,
The statement said that body of directors
have bolted and have announced to Mr.
Hyde and Mr.. Alexander that they will
s,ise every influence to compel the two
contending parties TO stand aside abso-
lutely." 49,
a. a standard for the Equitable and for all
life insurance companies:
That the entire life insurance situat ion
shall be altered: that the Equitable shall
hereafter he, and that other. companies
ought to be. confined in their investments
bonds only"
These directors, it is said, do net hesitat e
TO assert that under other condit ions the
insurance powers will become, in the public
underst anding CT the term. cont rolling
trusts" The great principle which these
direeto rs are contending for, it is said, is
that there should be neither stock control
Ior any cont rol under the g,lise or theory
of a policyholders' control, but that, like
savings banks, the insurance companies
should he controlled by actual directors,
in name trustees that the vacancies in the
board Of trustees should be filed by the
trustees themselves, and that trusteeship
in an ilsurarc, company should carry with
it the same individual responsibility as in
the case Of savings bank.
The Connect cut men interested in he
Policyholders Mutual Protect i've .Associa-
ton, which was organized few days ago
at a meeting of policyholders. in various
companies. met again yesterday at the
Office of Mark D. Wilbur, at 200 Broadway,
and announced the incorporation of the
association in Bridgeport, Conn. The fol-
lowing officers were elected:
President, Daniel NJ. Morgan, ex-Secre-
tary Of he Treasury; vice-president. John
j. Cone of New Jersey: secretary. John J.
Phelan, ey-Secretary Of State in Connecti-