The Montgomery advertiser., 1905-09-23

ciates,. the Equitable participating as a member. paid s1.376,os6 on call and received s114.5o profits. Mir. Winthrop, said there was nothing on the Equit-. able books to show who the associates were or what was MT. Hyde's personal profit.
 The Equitable participated also in Union Pacific syndicate, also in the name of J H. Hyde and associates, and when asked by what authority the Soci- ety assumed the responsibility of Mir. Hyde's personal operations, Mir. Win throp produced the minutes of the Fi- nance Committee of July. 1903, showing a written assignment of the company by Mir. Hyde of his interest In this sym dicate.
 The Society had paid into that sym dicate $l,67o,000. Much of the infor- nation desired in regard to these sym dicate operations MT. winthrop said he would have to look up and supply later. lust before Mir. winthrop was examined Mir. Hughes read a long letter from Grover Cleveland, who is trustee for the policyholders in the Equitable under the Thomas F. Ryan trust agreement The letter was placed in evidence. Buckner's Testimony. At the morning session Thomas A. Buckner, Vice-President of the New York Life Insurance Company, describ-
  and the methods of paying bonuses. "nyIic" system inaugurated by this company separating the agents who create business into grades according to term of service was explained ana these bonuses, MT. Buckner testined' were charged to renewal premiums: Moneys received by agents from "nylic, MT. Buckner said, were in addition to the regular agents commissions. Witness said when asked how expen- siye such a system might be, that the total payments to "nylic" members ag- gregated less than l per cent. of the total premiums.
 The committee adjourned until next Wednesday.
 Upon the assembling of the legisla- five committee which is investigating the life insurance business, Thomas A. Buckner, who has charge or the New York Life Insurance Gem pany's agencies and who was unable l to answer a number of. questions yes | terday, was called to the stand. The matter of the "nylic accounts was taken up. They included records of a | system of bcnusus paid to agents. |. Nylic. he said, was a body of men drawn from the ranks of agents wh create business for his company. It is divided into five classes:
 Freshmen first, second and third 1 | men have a written contract with the company and must produce business 1 having not less than $5,000 on prem iums and give their entire time Tor nVe years. They are paid no salary but qualify for higher degree. If there | was default of qualifications they were | dropped and had to recommence at the beginning. They received 50 cents a 1 thousand per month for all business | written by them.
 l The first degree nylic must produce business paying not less than $Z5,ooV lin premiums a year for five years tc become a second degree nylic. The second degree nylic received $l imonth per thousand. If an agent se' cures premiums of $25.0oo year ht becomes a third degree nyiic. This degree lasts five years. Its member. received $1.50 per months per thousant land must also maintain the $2b,oO0 to- ltal of premiums. At the expiration O. live years he becomes a senior and re lceives 75 cents per month per thousand lon new business over the average O insurance written during the previous twenty years. He need not give hi lentfre time, but must not write fo another company.
 When this system was devised 1t be came retroactive and all the agent went into these grades according t' their terms of service and amount O lbusiness written. None of these hal served sufficient time to become senio nyIics and at present the company ha Ebut three seniors. s.--.,-s- Sd
 Bonus for Agents. s---
 Mir. Buckner said that what none! agents got from the nylic was in addi ton to the regular agents commission Witness stated that the cost of nyli today is 1 per cent. of the renewa premius. MT. Buckner said this systen was invaluable in holding their agent in solidarity.
 Severance of connection with th' company ends all benefits except il case of death. when provision is md for pyments to the estate of nyh Iabove the grade of freshmen for thre to six months. Further postmorten benefits were paid under resolution ladopted in 1895 which provided that al agents estate may receive a sun equal to $l for every thousand of in surance written during the year pre- cediag his death. This, by vote of tn trustees was made an annual resolu tion. In the ten years this mortuar fund has been expended, witness testi fled that $23,0 900 had been paid out fo this purpose. *~....
 MT. Buckner could not state the bo nus l aid to agents above their regula
 
 but he thought 1t was not a very grea amount. He would supply this infor nation later. ...:...
 MT. Buckner testified that the tots
 payments to nylic members aggregate Hess than 1 per cent. of the total pre-
 miums. The company has 916 agent
 who are members of the New Tor
 nyIic and over 5000 who are not.
 will be possible MT. Buckner calcu
 lated, for a man who had worked twen lty years to retire altogether from ac tive labor.
 A second nylic was inaugurated Jai
 i, 1902, for agency directors, inspector
 and supervisors in the United Statei
 Canada, Mexico and the West Indies.
 A Board of Trustees was given con
 trol of fund made up by amounts con
 tributed in part by the members and i
 part by the life insurance company
 This fund was to be divided among tn
 members in 1912 according to tn
 amount of business written under tn
 direction of the members, The fun
 new amounts to $937.777.
 In 1904 it appeared that $432,601 wa
 given as bonuses under various writte agr9emnts wIth agents and there wa
 also $194,113 paid for general bonuse throughout the world. including thos .