Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-31
Legislative Committee Com
pleted Insurance Probing
NEW YORK YESTERDAY
FORMER EQUITABLE AGENTTOLD
OF REBATE SYSTEM.
Declared It Impossible to Make Money
Ex-senator Hills Hurry to
Testify at Close.

| Cise, actuary of the Equitable Life Assur-
| ance Society, was the first witness before
| the Armstrong legislative insurance COM
lnittee today. He has been with the So
| Giety for thirty Eight years, and answering
Mr.. Hughes, said that he was responsible
| for the actuarial methods of the society.
He was asked if any of the management
nterfered with him, and replied:
Henry B. Hyde attempted to make me
make figures on dividends declared on de-
ferred dividends policies higher than I
thought advisable. That was about fifteen
years ago. l reported 1t to Vice President
James w. Alexander and explained the
| dangers of this plan, and he persuaded Mr.
Hyde to give way"
Van Cise's examination was given over
to the description of the various policies
issued by the Equitable the manner of
computing the dividends the participat-
ing business and the method of arriving al
the estimates Of the loadings on the pre-
niums.
When Mr.. Van Cise was excused Mr..
Hughes produced a number of statements
that had been requested by the committee
from several of the companies. They were
so numerous that the time was too short
to read them all for record, so they were
presented and marked for identification.
Some letters TO the committee from wit
nesses who desired to correct their testi-
mony were also read by Mr. Hughes for the
record.
sickles Tells Of Rebate System.
George H. Sickles, a real estate agent of
Buffalo, formerly of the Equitable Life
Assurance Society, called and told of
the manner in which Gage L. Tarbell, vice
president of the Equitable, prompted his
agents.
Did you and Mr.. Tarbell talk about re-
bating?" asked Mr. Hughes.
"Yes, we did l understood it wasn't
legal, and asked him how 1t could be done"
said Sicl.les.
And he told you how?'
"Mr. Tarbell said to collect the whole
premium, and, for instance, in one case l
remember, he said then buy five letters of
introduction from the man at 500 apiece"
"And you were TO do as you saw ft-tear
them up for instance?"
YES"
did you give rebates, Mr. Sickles?''
why, 1 don't think that a fair question,
Mr.. Hughes
Yes, L think it is
Chairman Armstrong was appealed to, and
he said: This happened In 1893, so any
offense is outlawed, and you're not incrm-
replied promptly:
"Yes, I gave rebates"
did you buy the letters?"
mo
Mr.. Sickles asserted that he Couldn't
make a dollar-the practice of rebating was
general" and was then excused
Mr. Hughes announced that Gage e. Tar
bell was out of town, and as he could not
be reached his testimony regarding the
statements of Mr.. Sickles as to rebating
could not be taken. Mr.. Hughes suggested
that Mr.. Tarhell be permitted to submit a
deposition under oath If he cared to do so
after adjournment, and Chairman Arm
strong said that this would be allowed.
Hill Anxious to Testify Now.
Mr.. Hughes, continuing, said that the
counsel for the committee had communi-
Gated with David B. Hill with a view to
having him appear witness and tes-
tfy in relation to his s. 5,OoO, 600 retainer for
the Equitable Life. Mr. Hill replied that
he was too Ill to do SO. Later. Mr. Hughes
said, the committee telegraphed to Mr..
Hill and he replied, saying that he
was confined to his house and was unable
to attend.
Mr.. Hill recorded a protest against the
adjournment of the committee before he
had chance to testify or at least without
appointing subcommittee to take his tes-
timony Mr.. Hill declared that he had
been ready at any time since the appoint
ment of the committee to testify and was
desirous OF doing so.
Chairman Armstrong said that 1t
would be impossible to have Mr.. Hills
testimony before the committee, as was
desired He said that he understood Mr.
Hill was i'll at his home and that no Inn
proper motive could be attached to his abb
sence. If was In any way practicable to
get Mr.. Hills testimony before the COM
nittee 1T would be done.
Statements From Companies.
Rufus Weeks, aetuary of the New York
Life. was then called to supply further
information on the methods of his CONT
pany in arriving at dividends.
Almost the entire afternoon was taken
up by Mr.. McKeen, associate counsel of
the committee. in reading from the record
the statements of companies incorporated
In other states, but doing business in this
stats. the officers OF which had been asked