The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-11-23
SAYS PREMIUMS
WERE : LOlDED"
ViCe-President Tarbell Ad.
mitS ExhOrbitdnt Cost
Of insurance
CLAIMS INSURED
GOT EXCESS BACK
OF $So,ooo,ooo Surplus of Equi-
table in 1894 Only S7o,ooo,ooo
Was Set Aside for De-
ferred Dividends,
Which is With
(By Associated press.)

4 a.. = i
NEW YORK, November s2.-After be-
Ing on the witness stand before the Arm
strong Legislative Committee on In
surarcc Investigation for the greater part
OF three days. Gage E. Tarbcll, second
vice c-prcsident Of the Equitable Life AS
surance Society. finished his testimony
to-day and just before adjournment sub
nlitted u list Of suggestions for the
remedy Of existing abuses in the man
agement OF insurance companies and Tor
legislation designed to give the State
proper control over the companies and to
insure the confidence Of the policy
holders. Prominent among these sugses-
tions was absolute publicity. While adj
hitting that worng had been done BY
Glife insurance officials. Mr.. Tarbel said
he had no apologies to make for any OF
them, and that he hoped they would BIZ
punished.
Mr.. Tarbell was on the stand the entire
day and was questioned as to the system,
Of agencies and the commissions and
other compensations allowed them for
getting business. Just before the recess
the fact was brought out that Mr.. Tar
bell had taken out insurance on his own
life and on members Of his family, and
had received the agents commission on
the premiums as we'll as renewal COM
missions. He said that since he became
an officer he had taken out 5000 600 on his
own life in the Equitable. Besides his
policies in the Equitable he had tal,en In
suance in the New Yok Life the ar
rangement being nTade with George ",
Perkins. and on this, too, he received the
commission on the premiums He had
also a policy In the Aetna and the
.Trave' ers. on all Of which he collected
the commissions. He said ne carried
100000 on his own life. and 100000 or
members Of his family.
Loading Premiums.
Mr. Tarbell said the system of load
ing" premiums was originally to insure
the ability OF compa MES to meet any con-
tingency Of claim or expense. He said
that premiums are placed higher than is
necessary for safety, and the excess
"loading'' is returned to policy-holders
In dividends.
OF the ssO,OO0.0OO surplus Of the Equta-
BILE Society at the end Of 1894, Mr.. Tarbell
said about s7o,01o,00o was set aside for de-
ferrcd dividends, but the company does
not recognize any right Of the policy
|
has matured or reached the point at
which 1t has earned its divluend. This
SO, 0Oo, 900 could be used to defray any
contingency that m ght arise.
Mr.. Tarbell said that an extra commits
sion OF 10 per cent. was allowed general
agents on business written betweon July
Is and Dec. 81 1905 This was dole. wit.
ress said, TO enable the agents to make
& compensation upon which they could
live, because of the difficulty of getting
people to insure.
Denounced Rebating.
Mr.. Tarbell was emphatic in denouncina
the system of rebating by agents, and
stated that any agent OF the Equitable
who gave rebates to get business was
dismissed. When he told OF getting the
commissions, Asseu1blyman Cox asked Il
that was not rebating. and Mr. Tarbel
said it was not. that he thought he was
entitled to 1t. This morning. later when
Mr.. Hughes took up this same subject
with the witness, the latter Justified the
taking Of the commissions as being sim.
liar to the case Of a merchant who pur-
chased goods of fellow merchant In the
same line. perhaps to fill an order, and
got those goods at cost, or OF a profes-
sional man treating another and charging
less than the regular fees. Witness said