The Minneapolis journal., 1905-11-22
THRIFTY, TARBELL
REAPS ON REBATE
Insurance Man Says They ALI Do
Got Commissions on Own
Policies.
EQUITABLE MAN ON
INVESTIGATORS GRILL
Company Has Had to Give Extra
Inducements to Agents,
Of Late.

New York, Nov. 22.-Gage f.. Tar
bell. second vice president OF the
Equitable Life Assurance society, be-
mittee @ T today, resumed his testimony re-
garding the agency system OF the
Equitable. He submitted specimen
of contracts made with agents which
was offered in evidence, as also were let
ters which accompany contracts explain
Nj. Tarbell said that an extra, com,
mission of 10 pei. cent was allowed
tWeen seeeIa. Jniy s IS and m Dec. 81, 1905. This
was done, witness said, to enable tne
agents to make q compensatory On
which they could live, because s or Inc
Loading Premiums.
Mr.. Tarbell said the system OF .load-
ingU premiums was originated to insure
the ability of companies to meet any
contingency of claim or expense: ne
said that premiums ga are RltaSea tS and M the
excess tsIoading'' is returned to policy
holders in dividends. Of the $50 ,00O,-
900 surplus of the Equitable society az
the end of 1894, Mr.. Tarbell SAID, apouS
$70,Oo0,0O0 is set aside for deferreat aa 20
dividends. but the company does not
recognize any right Of the poliesyholder
in the 7O,O0O,O0O until the policy has
matured or reached the point at Wh1ch
it has earned it's dividend. This $1O,e.
| 900 900 could be used to take care OF
any contingency that may arse.
Tarben Is Thrifty.
Mr.. Tarbell said he and his family
were insured for about $500, 900 in the
Equitable society. He said ne re-
ceived the agent s. commissions on this
insurance and also received the renewal
commissions, altho the insurance was
written thru general agency. VI this
insurance 5000, 900 was taken out by MT.
Tarbell himself, after he became an Of
fcer Of the EQUITABLE society and on
This. too. he received the regular maxi
mum commission and is receiving the
renewal commissions He paid the
premium to the Equitable and received
the commission thru the general agency.
I He also has insurance of $4,000 IN
the New York Life, $4,000 In the Trav7
ellers', and $4,000 in the Aetna Life.
In all these cases he received. the
agents commissions and the policies
4 years ago. All except that with the
! New York Life were taken out in Chi
i cago and the latter was taken out since
he came to- New York. Witness said
he also receives the renewal commits
sions on these policies. ~
He arranged his policy. ana c0mmls
sions in the New York Life with George
W. Perkins. He did not know that
l Perkins had any insurance with the
: Equitable.
:. Regular Little Game.
), Witness said he thought this. has al
:, ways been the general practice for OF
S ficers of the insurance companies tt
e draw commissions on their own policies
t either in their own company or in 9th
e ers. He declared it was not rebating
S He thought he was entitled to the com
: mission. Any man who devoted him
e self entirely to a business, he considere,
;, was entitled to legitimate commission
t in connection with the business.
Ii Reverting again to the agency Gus
n tom, Mr.. Hughes questioned MI. Tai
y bell as to the comparative advantage
q Of the general agency system and tn
=. salary system. Mr.. TarbeI told of a
Is enormous increase in the business don
t. at Pittsburg, general agency office i
/ charge of E. A. Woods, who, Mr.. Tai
IS bell said, had more than any othe
N agent of the company. Mr.. Woods
y profits in 1904, Mr.. TarbeH said, wer
III III $50 500. ~ -.--H -