The Birmingham age-herald., 1905-12-07


 New York, December 6.-The resisna- tion of Senator Chauncey M Dcpew as a director of the Equitable Life Assurance society was one of the most interesting developments today In the situation grow ing out of the life insurance investiga- tion.
 The senator's resignation was rendered to President Paul Morton of the Eauit- able society in a brief note in which no reason for 1t was stated.
 The report as published tonight Is to the effect that President John A. Mccall of the New York Life Insurance company will resign from that company before the next annual meeting of the trustees in April and that if he does not tender his resignation at a meeting of the trustees next Wednesday he will refrain only at the request of the trustees, who, the re- port said did not wish to have to elect a temporary president.
 The published reports also stated that the presidency of the New York Life ln- surance company has been offered to John Clafiin, a trustee of that company, and president of the H. B. Clafiin com pany, and that MT. Clafin has refused to accept the offer.
 The attention of the legislative investi- chiefly to the affairs of the Security Mu- tual Insurance company of Binghampton. N. Y, whose president, Chatham M Turn CT, was upon the witness stand most of the day. His testimony and the reading of many contracts served to describe in detail the organization of the agency and investment company of Binghampton in 1903.
 The company paid the salary of the president of the Security Mutual lsife h. surance company at first advanced money amounting to $S7,O00 agreed to furnish 1t with insurance business at the rate of s5,000,0O0 a year, and in return received a five per cent. on all new premiums of the insurance written by the company. The stock of this agency company, which amounted to $125,OO0. President Turner said. was issued to himself and his asso- ciates in the Security Mutual Life in payment for the money they advanced to the insurance company. It covered also he said S10,00O compensation to himself, and what Charles E. Hughes, counsel for the company, called "$2s0o0 of velvet. .' President Turner testified that the agency company collected its commissions, but did not furnish the insurance it promised.
 After two years the stock of the agency company was increased to $175.000, and of the $50000 increase $40,OO0 was advanced directly to the insurance company and s10,00O Mir Turner said, was advanced to Morton D. Moss, general agent of the company. A new contract was then made between the two companies by which the insurance company agreed to pay the agency company enough money annually to pay the salary of President Turner, the expense of the agency company. and also 12 per cent dividend on the whole of the company's stock.
 President Turner said that contract is still in force He testified that he now holds $30000 of the agency company s stock, and that most of the officers and directors of the Security Mutual Life h. surance company owns stock in the agency company.
 MT. Hughes asked President Turner if he adopted the agency plan in preference to making the insurance company into a stock company. MT. Turner replied that he could not have made the insurance company into stock company, and that the company needed the advances that were made by the agency company. The committee adjourned until tomorrow