The Washington times., 1905-09-22
|" NYL|C' MYSTERY
NOW ELUC|OATED
BY Mr.. BUCKNER
System of Rewarding
Special Competence
of Agents.
NEW YORK LIFE AWARDS
Vice President Tells That
Initials of Corporations
Name Form Word.
NEW YORK LIFE AWARDS

NEW YORK. Sept. 2-Thomas A
Buc,xner. vice president OF the New York
Life and in charge OF the agencies. was
witness this morning before the legls-
lative insurance investigating commit
tee. Mr.. Buekner Was asked about the
nature OF "Nylies"
The word ..Nylic'' Is made up from
the first letters of words in New York
Life Insurance Company Mr.. Bucknsr
said that the -Nylics-- were created TO
establish a system of compensating
agents and to establish permanency in
ne agencies OF the company
Five Classes.
There are five classes of Nylics. and
every agent becomes a member oe the
first class of Nylics. known as the
freshman Nylics. II an agent showed
ability and did $1,000 n year fer FIVE
years. he was advanced 10 the second
class. and so on to the class OF senior
Nylic. each class giving its reward and
emoluments for so much business un-
dervritten-
Mr.. Buckner said that at present
there were only three senior Nylics
| This system has been In operation since
1896. and its conditions were made re-
! trodctive so that agents received the
| rewards of the Nylics even before il
was created Mr.. Buckner said that
| the cost OF Nylics 10 the company was
less than 1 per cent OF the renewal
| commission
| The witness said that the Nylic
! method was cheaper for the company
than the renewal system and Mr..
Hughes said he would be permitted 10
explain the benefits OF the Nylics later
The senior NyIic gets his commission
every year whether he works or nor
and such commissions continue six
of the senior member OF the Nylics.
After the interesting disclosures OF
the last two DAYS the interrninable tes-
and effects created q general feeling OF
lassitude and Indifference.
Bank Clerk Testifes.
Mr. Buckner was excused for few
minutes 10 permit Harry Dempsey.
cashier of the Citizens Central National
Bank, TO be sworn He submitted a
transcript Of Judge Andrew Hamilton'e
account at the bank
Judge Hamilton received s2s5. GOO from
President Mccall. OF the New York
Life. for real estate purposes. accord
ing TO Mccall, and he was requested 10
give no vouchers or make an accounting
Tor this sum. Inquisitcr Hughes Is still
looking for the SIS. 900.
Judge Hamilton is at present summer
1
home early next month.
Morgan to Testify.
J. P Morgan will be the star witness
before the Armstrong Insurance investi-
eating committee. This was declared to-
day to be the general understanding be-
tween the committee members and those
who are Intimately connected with the
investigation
| t. -
decided that Mr. Morgan's testimony
Will be vital % the success OF the in
vestigation. especially n view OF what
. ! was divulged on the stand by George w.
Perkins vice president OF the New York
Life and a partner in the banking firm
. of J. P. Morgan & Co.. regarding his
transactions with the Morgan firm on
behalf of the New York Life
When Mr. Morgan goes 10 the stand
he Will be asked TO tell in detail.
The exact nature and scope of the
deals Sith his firm and the New Ys1k
! II it is true that. IN the four years
since Mr. Perkins became a member of
ing 70 par value SSy. .z56.0I5 were made
by the New York Lie from ]. P -Ior-
gan & Co.
Small Commission.
If it is true that Mr. Perkins. as he
swears. realized commission of only
sl0.4eo-6! on these transactions, which
he covered over into Ine treasury Of the
New York Life
How II is that this apparently meager
commission was allowed Mr. Perkins
when much larger profits from stock
deals We're netted by other operator
notably the firm OF W. S. Fanshaw s
Co.
What was the precise nature OF thu
| dealings in which large investments OF
I | New York Life funds were made in IN,
q navigation corporation stocks and othel
? Morgan matters
II is not believed that Mr. Morgan
Z | Will seek 10 eVade a summons from
i the committee or refuse 10 answe,
!. | what questions Mr. Hughes may put
). To Recall Buckner.
y Mr. Hughes plan for the days ses
: sions includes the recalling Of Vice Pres
d ident Thomas L. Buckner. CT the New
York Life. who has charge of tn,
: Ierrogate him further. with especia
! reference to the declaration made OF
e the stand by Mr.. Buckner 10 the efrec
{ c--at no secret agreement for the pay
> ment or the eXorbitant com missions ex
= lists between the company or its agents
y and that the average commission Of IN
( agents is about / per cent
= Mr.. Hughes also wants TO know NOR
about ISe system under which agent.
/ who wrCte 100000 or 500. 600 worth o
e business were allowed a bonus OF $50
ssyZT;,Ioxry n--oCcino,s, - Nz