Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-11-23
To Enable Agents to Sc
cure More Business
Is Condemned by Vice President
TarbeI Of the Equitable.
Tesiifies to Fairness Of Prick Report.
Other Interesting Testimony.

New York, Nov. 22.-After being on
the witness stand before the Armstrong
legislative committee on insurance in
VeStigation for the greater part Of three
days, Gage f. Tarbell, second vice
president of the Equitable Life Assur-
| ance Society, finished his testimony
| today, and just before adjournment
submitted list of suggestions for the
remedy of existing abuses in the man.
agement of insurance companies and
for legislation designed to give the
state proper control over the compa-
MES and to insure the confidence of the
policyholders. Prominent among these
suggestions was absolute publicity.
Mr. Tarbell was on the stand the en-
tire day and was questioned as to the
system of agencies and the commissions
and ether compensations allowed them
for getting business.
Just before the recess the fact was
brought out that Mr.. Tarbell had TAX
Ell out insurance on his own life and on
members of his family and had re-
ceived the agents commission on the
premiums as we'll as renewal commits
sions. He said that since he became an
officer he had taken out 100000 on his
own life in the Equitable. Besides his
policies in the Equitable he had taken
insurance in the New York Life, the
arrangement being made with George
w. Perkins, and on this, too, he re-
ceived the commission on the premi-
uns. He had also policy in the Aetna
and the Travellers, on all of which he
collected the commissions. He said he
carried 100000 on his own life and
100000 on members Of his family.
Mr.. Tarbell was strenuous in de-
nouncing the system of rebating by
agents and stated that any agent of the
Equitable who gave rebates to get
business was dismissed. When he told
of getting the commissions, Assembly,
man Cox asked if that was not rebat-
ing, and Mr.. Tarbell said it was not,
that he thought he was entitled 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. Witness said further
that the commissions were paid 20 get
the business and that when the bust
ness was done without soliciting there
was no expense and that, therefore. he
was entitled to these commissions. Mr..
Tarbell said this was the custom of in
surance companies and their officers,
adding that 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 HaZen Hyde when
on the stand relative TO the fairness of
the Prick report. The subject of ad-
vanceS to agents was under investiga-
ton and Mr.. Hughes read some figures
of the amount of advances to one agent
in this city. Mr.. Hughes asked where
the Frick committee got the figures and
Mr.. Tarbcll replied with marked asper-
ity that he did not know.
"They did not get it from my depart
ment or the auditors, they made their
report without even making an inves-
tigation of the department" he said.
When Mr.. Tarbell was excused he
was followed by Gerald Brown, who is
at the head of the bond and mortgage
department of the Equitable. He was
examined about the real estate of the
society and was on the stand when the
committee adjourned.