New-York tribune., 1905-06-04

IN hsc
statement he said:
society is felt by all and Uh,s which eonfronts the
concede that the COMMITTEES has approscSad SO ,9
seriousness of the situation is much ncrea b me me
saTi.;aS &c SohGuslone ,s and the general reflections
IN the committees report upon the methods Of the
unjust and TO spring from Imperfect understand
lns OF te & ngIulorn @ and intricate business OF the
society ana upon incomplete data and information
ADVANCES TO AGENTS.
Some reference has been made to the r,a,boa =,
vogue in the Equitable OF making advances TO its m
sts president. Mr. Hen 'pHanaEura6ed H~aEa by the
ago. Tor the purpose Of economy In business II
Certain amount Of money necesssr to
agency ana charging IT 10 expenses and lending
OF his renewal commissions which in normal cases
& are seeieI E TO pay out with interest. the latter
a. as Ie susceptible of proof that many millions
process
might be transacted with better results in way
business on small scale have attained successful
ea oganSas ms Is Al non se9uitur The Equitable has
scale ana Il Is susceptible of demonstration that
saving money. entail far greater expense This may
be shown by illustration:
BE the @ P9sbnr as Eqqfa s
age agency tTansacted a act of new business IN l o IN
Of Outstanding business, with premium income
the head Of that agency, is altogether by commits
sion An the expenses OF his agency are at his
salaries of employees, travelling expenses. guaran
xmas and in order even in ' SUCCESSION M sgeDcy
ike that. to obtain net income and above
expenses. it is necessary that large amount of
business should be transacted. The moment the
volume Of that new business is materially reduced
and it is easy to see that If carried extreme
Applying the same principle to the whole business
of the society, which is organized with large
Il reduced by the most drastic measures to mini
BUSINESS WOULD necessarily involve an increase OF
ratio of expenses. and it is the ratio that tells
proyements in contemplation. the ratio of expense
on entire business would gradually diminish.
but a policy of management which removed the
stimulus from agents TO prod ace large business
Volume would work out essential injury in the
way of ratio of expenses and consequent diminuton
Our method of deferring the distribution of divi-
dends for periods of ten fifteen ana twenty years
sometimes been compared with the practice of
! claim with absolute confidence that it can be
demonstrated that the plan by us Is the ne mos most
Ii enables those who by reason Of long life are
1sgsa a 0 S MAKE sage payments nc o We
dying early leave their beneiciaries ample sums
COMPARED with the amount paid therefor The tenn
porary strength given to the company also by the
possession of the accommodating surplus IS enor-
During these last FIVE years the management +f1 has
agents. which regard as one OF the most tnft1 ERR
consisted eSTsGss f'S IN reducing the commission
years premiums and increasing II somewhat - on
ing large amounts of money on policies that only on
3 apees is and saving money for prots policy
holders. ~s-.'-sse-
DEFENCE on PERSONAL CHARGES,
1 am accused of conoeang from the board the aN
Irregularities of which c2mpLalt @es @ fo exist
am also accused of knowingly pargipaans n spe 9
rtbereed with having encouraged the practices
which now. according to the report OF i ete
taily accused having attacked such praeuee5 az az
means the achievement OF the ''0-'
These Charges unqualiedy false e,rpfee ana nG s
bound by no form of procedure IN .Iedsentai Ie
Of its investigation there are certain cert indgment
offences from which. in fairness! aaettS IT, ner
9 F6 aeensed should have notice Of the 2 ds
against him. an opP9Ltunity igF and ample hearing
assert to this board that until the coming e. IN a OF
cusaf0rV matter engaging the eommttees stten ten
ton and relating to me; ~ ine1irY to me- which is
Get forth ir, the committees report az PasS 49, - @
which reIa{ep t statements contained in my commu-
nication to the committee OF NAY MAJ and suffering
,be board in ignorance of matters witnim IN my my
knowledge to reeSt s Soard s 1hg held on February IS
Sep "a cali the boards attention to the s2
vsd e ae ferh in full in committees report
effect that THE 9Aeers fled With the board
protest oi ,ne Of February based. came TO
MING my of tse board during which time was
nvsssstng them r.. pTeesHae9Ff meeting of Febrnary
tIes @ Of twelve was appointed TO CONSIDER tne peI
ton and protest signed by tne s taken Intii
Februarv Is In the interval me ad = len etbr
1foet to the committee on the s9n1ect ol me-
fuaiizaon containing upon Which the protest
Of the socIetys officers was easeG IN this stateen,
me sReSibi pen in the investigation committee re-
lie herewith copy on on R February TO- At the con-
eommltpess s on NV statement adiournment va va
taken supposed Of copTse Would be at once Under
., aes bS the cormittee. Three neIioeIs % W eGf az
committee Of siys snd two Of the three members
were in attendance at the eeiE i.ion ~ the SECOND
Inittee Of twelve; cb read the statement referrs{
70. one Of committee mo now his tist In nay face
of bad faith and threatened to dTg
mo out Of the EQUITABLE Al bs,s the one hour befort
o. he hes Td convened on February l6 In r..
tee Of two was appoinffeoS9 o9 the committee twsy,
~ the board of directors. TITS bib Wa had Sc
report silent on the e6a Sn oemmuncation TO th
ooumittee II recommended my e aeS ~ yice-pres
tse PEes0enGg nGgediateiy foIowng discussGn a tS
the report motion for the II amendment I,
eflceIs oI ne report was almost unanimous
e4sr.sS. .,,,,n, tas. these facts clearly De
that thsTs e G1ooRRssssEaon see Commit
stated @ 9f IN to s Sew TFis 81 p@op
tee we're instituted with ta hse meeting Of February
shs a.ssa being say sansy.s.an Of any n the .sSty
ss oe.r ss:9s ssr into Tee Sss soaId
pste to the ooeen ,nxs.exatls a the sub,eo
pp35 e iGl ns0ns ane SAID son sS m
ported back t board wi,out ,anoTed the charge
.s.rsp Sonsaed & X occurred Prior O. aI