Arizona republican., 1905-09-23
THE AGENTS GRAEr

New York. Sept. 22.-UpOn the Teas- sembHng today of the legislative com mittee which is Investigating the life insurance business Thomas A. Buck ner. vice president of the New York Life Insurance company who has charge of that company's agencies. and who was unable to answer a number of questions yesterday without looking up the records was called to the stand. The matter of the "Nylic" accounts were taken up. They include records of a system of bonuses paid to agents. The "Nylic" he said, was a body drawn from the ranks of agents who create business for his company. It is divided into five classes.
 Mir. Buckner said that what moneys the agents got from "Nylic" was in ad- dition to the regular agents commis- sion. Witness stated that the cost of "Nylic" today is one per cent of the renewal premiums. MT. Buckner said this sytem was invaluable in holding their agents in solidarity.
 Severance of connection with the company ends all benefits in "NyIic" except in case of death when provision is made for payments to the estate of a 'Nylic" member above the grade of freshman for three to six months. Further pOstmortem benefits were paid a which provides that an agents estate may receive a sum equal to S1 for ev- cry thousand dollars of insurance written during the year preceding his death. This by vote of the trustees was made an annual resolution. In the ten years this mortuary fund has been expended. witness testified that $23,- 900 had been paid out for this purpose
 Mir. Buckner could not state the bonus paid to agents above their re- gular commissions under the ''Nylic" system but he thought it was not very great amount He would supply this information later.
 MT. Bucltner testified that the total payments to "Nylic" members aggre- gated less than one per cent of the to- tai premiums. The company has 916 agents who are members of ''Nylic" and over 5000 who are not. It would be possible, MT. Buckner calculated. for a man who had worked twenty years to retire altogether from active labor. A second 'NyIic' was inaugurated Jan. l, 1902. for agency directors. in spectors and supervisors in the United States, Canada and the West Indies. A board of trustees was given control of a fund made up by amounts con- tributed in part by the members and in
 
 This fund was to be divided among the members in 1902 according to the amount of business written under direction of the members. The fund now amounts to $937,777. In 1904 it appeared that $432 601 were given as bonuses under various written agree ments with agents and there were also $194,115 paid for general bonuses throughout the world, including those for special months
 NOW" said MT. Hughes I find S6,- 662 AS put down for one year for com mission on $14,O4S,535 first year premi- ums on new insurance and total com mission as $7,262,5 593. These are inde- pendent of all payments on "Nylic"
 "Yes"
 What is the rate of commission on Germany" asked MT. Hughes.
 ''We are not allowed to pay more than fifty per cent of the first years premium on any policy and the aver age price is 40 per cent"
 MT. Hughes asked for full state ments from MT. Buckner of the busf- ness written in the United States and Canada and in the other parts of the world, both showing the premiums and commissions paid, and all other par ticulars which would show to what ex- tent if any. the business of the New York Life was being extended through out the world at the expense of the American policy holders.
 CLEVELAND WRITES A LETTER.
 Mir. Hughes offered in evidence a