Los Angeles herald., 1905-11-23
HOPES OFFICIALS
MAY Be PUNISHED
TARBELL TELLS OF REBATE
RECEIVED
Second Vice President Of Equitable
Denounces Acts In Agents Which
He Admits Higher Authori-
ties Freely Commit
BY Associated Press.

BY Associated Press,
NEW YORK, Nov. 22.--After being
on the witness stand before the Arm
strong legislative committee on insur-
ance investigation for the greater part
of three days, Gage u. Tarbell, second
vice-president of the Equitable Life
Assurance society, finished his testi-
mony today and just before adjourn
ment submitted a list of suggestions
for the remedy of existing abuses in the
management of insurance companies
and for legislation designed to give
the state proper control over the COM
panieS and to insure the confidence or
the policyholders.
Prominent among these suggestions
was absolute publicity. While admit
ting that wrong had been done by life
insuf ance officials Mr.. Tarbell said
he had no apologies to make for any
of them and that he hoped they would
be punished.
Mr.. Tarbell was on the stand the en-
tire day and was questioned as to the
system of agencies and the commits
sions and other compensations allowed
them for getting business.
Just before the recess the fact was
brought out that Mr.. Tarbell had taken
out insurance on his own life and on
members of his family and had re-
ceived the agents commission on the
premiums as well as renewal commits
sions. He said that since he became
an officer he had taken out 100000 on
his own life in the Equitable.
Denounces Agents Rebates
Besides his policies in the Equitable
he had taken out insurance in the
New York Life, the arrangement being
made with George w. Perkins and on
this too, he received the commission on
the premiums. He also had a policy in
the Aetna and the Travellers on all of
which he received the commissions He
said he carried 100000 on his own life
and 100000 on members of his family.
Mr.. Tarbell was emphatic in denounc-
ing the system of rebating by agents
and stated that any agent of the Equit-
able who gave rebates to get business
was dismissed.
When he told of getting the commits
sions Assemblyman Cox asked if that
was not rebating, and Mr.. Tarbell said
1t was not; that he thought he was en-
titled to it.
Later when Mr. Hughes took up this
same subject with the witness the lat
ter justified the taking of the commits
sions as being similar to the case Of a
merchant who purchased goods of a
fellow-merchant in the same line, per-
haps to fill an order, and got those
goods at cost, or Of a professional man
treating another and charging less
than the regular fees.
Travels Free of Charge
Mr.. Tarbell further said if he had
done wrong he was sorry, but that he
had acted in good faith.
Mr.. Tarbell bore out in a measure
the statement of James H. Hyde when
on the stand relative to the fairness
of the Frick report.
The subject of advances to agents
was under investigation and Mr.
Hughes read some figures of ths
amount of advances to one agent in
this city. Mr.. Hughes asked where the
Frick committee got the figures and
Mr.. Tarbell replied with marked asper-
ity that he did not know.
"They did not get them from my de-
rartment or the auditors. They made
their report without ever making an
investigation of the department." he
said.
AS to the expense incurred by the Of
ficers of the Equitable. Mr.. Tarbeil
said he personally never had any eX
penses except those that he turned in
In an itemized account His travelling
expenses last year amounted to
$4675. On one of those trips he had
private car. His car generally has free
transportation. so that there is a saw
ing in expenses The free transporta-
ton is also extended to the occupants
of the car. The Equitable Society owns
private car. The witness thought
that the railroads extended these priv
ilegeS to life insurance companies be-
cause the latter have been large
patrons in buying railroad securities.