The free lance. (Fredericksburg, Va.) 1885-1926, 1905-09-26
MORE SYNDICATE DEALS
Operations of Equitable Taken Up
by Insurance PrObsrs.
LETTER FROM CLEVELAND READ

Saws Great Obstacles Lie In the Pain
Of naturalization Of the Equitable
How the New York Life Paid
Bonuses.
New York. Sept. 23.-Syndicate OPP
erations of the Equitable Life Assur-
ance Society were taken up by the III
surance investigating commlltee'
Henry r. Winthrop, assistant secre'
tary and financial manager OF the so
ciety. was called TO the stand imme-
diatelv after the recess and presented
and swore to a record OF syndicate par
ticipations of his company. also TO a
record of sales and purchases OF Sc
curities for the past five years lie ue
failed as far as he was able the trans
actions of the syndicate of -. II. Hyde
and associates" and took memoranda
Of all information he was unable TO
supply. which is to be presented at a
later date.
One of the operations was In At
lantic Coast Line bonds, in which j.
u HYDE and associates. the Equitable
matchmaking as a member, paid 81
27c 600 on call and received $ll4bOO
prodts. Mr Winthrop said there was
nothing on the Equitable books TO
show who the associates" were. nor
what was Mr.. Hyde's personal profit.
The Equitable participated also IN a
Union Pacific syndicate in the name
Of ]. II. Hyde, and when asked by
what authority the society assumed
tbe responsibility OF Mr.. Hyde's per
sonal operations. MI Winthrop pro
duced the minutes of the finance com
mittee in July. 1905. showing written
assignment to the company by MT
HYDE of his interest in this syndi'
cate.
The society had paid into that syndi'
cate s1.67O.OOO Much Of the informa-
tion desired in regard to these syndi'
cate operations Mr. Winthrop said ne
would have to look up and supply
later
lust before Mr.. Winthrop was ex'
amined. Mr.. Hughes read a long letter
from Grover Cleveland. who Is trus-
tee for the policyholders in the Eqult'
able Society under the Thomas r.
RYAN trust agreement. The letter was
offered in evidence Mr.. Cleveland de-
tailed the progress Of the trustees IN
mutualizing the company. and said:
"The obstacles that lie in the path
Of the proposed naturalization are so
inherent that even with the greatest
study and care they cannot be easily
overcome" In conclusion, Mr.. Cleve'
land said: an common with all oth-
ers who desire the best conditions IN
this important field of business. where
neople have so much at stake, the
trustees acting for the policyholders
of the Equitable Society will gladly
welcome any aid in their work when
NAV result from the labors oil your
committee.
Thomas A. Buckner, vice president
Of the New York Life Insurance com
pany, described the agency system OF
the company and the method Of paying
bonuses.
A 'nylic" system, inaugurated by
this company. separating the agents
who create business into grade &C
cording to term of service. was ex-
planned, and these bonuses Mr.. Back
ner testified were charged to renewal
premiums. Monies received by agents
from "nylic." Mr.. Buckner said, were
in addition to the regular commission.
Witness said. when asked how ex-
pensive such a system might be, that
the total payments to 'nylic" members
aggregated less than l per cent. OF the
total premiums.
Mr.. Buckner was unable to supply
the amount of information desired, but
will do so later on.