New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-01
TARBELL AND REBATES
GIVES FIGURES.
Rumor That Union Pacific Is Carry
ing Loan from Equitable.


II Knowles. who until n was dismissed by
president Alexander last Thursday was super
visor OF agencies for the Equitable Life Assur-
Snce Society asserts that Gage r TarbeII Sec
ond vice-president, guilty OF rebating on i
wholesale scale The real phases OF the work IN
Chicago. for which Mr.. TarbeH received tie
office Of third vce-rresfdent OF the Equitable
were never brought out. says Mr.. Knowles
The Frick committee, beginning TO-DAY. v-iI
hold daily sessions. Senator Knox. council
to the committee. viii meet with il. and viii
take large part in the examination OF wit
nesses- Most of the auditing OF accounts and
checking up of expenditures has been finished
by the committees accountants. and practically
all the sessions will be devoted to the exam
ination Of witnesses
President Alexander and Gage Z Tarbeu
probably, will be called before the COMMITTEES
and asked to substantiate the charges they have
made against Mr. Hyde These charges have
been carefully tabuated for the committees
reference. Mr.. Hyde will be asked about tho
underwriting syndicates in which according to
the declarations Of his opponents he made il
legitimate profits
The report was put IN circulation yesterday
that the Frick committee was greatly exercised
over discovery that the Union Pacific at pres
ent was carrying large loan from the Eguita
bic, and that Mr.. Hartman. q dominant fnau-
ence IN the Frick committee was fearful Lest
blocks Of his securities which the Equitable
held, would be thrown suddenly on the rnarxAt
to protect the society. A man close to the Alex
ander side had heard nothing about the loan to
he Union Pacific. and was not inclined TO be-
lieve the report
Mr.. Tarbell became a member of Crane C1ir-
ran & Co, in Chicago, says Mr.. Knowles in his
statement. when Mr.. Crane had been manager
IN that field for fifteen years The year Mr.
Tarbel entered the firm there had been pro-
duced in that district about s13OOO.ooo OF busf-
ness. Mr. TarbeTs contract in 1889 was that
he was to write 100000 of insurance year,
while his rebates were not to be more than 27r,
per cent
He wrote 81. $4,000 of business, saws Mr.
Knowles, ''on an average rebate of 81 per cent"
Because Of this. Crane Curran objected to
his entering the firm. goes on the statement.
At least 60 per cent of the business Iapsed after
the first premium.
BY 1880 Mr. TarbeII had forced Curran out OF
the firm, Mr.. knowles says. In that year Tar
bell wrote $212TOOO of business, of which $685.
coo was not accepted. although the agency had
gone TO various expenses on it. On the 81 29I.-
COO which was paid for the premiums were
$29.96I Il, the rebates $24. .912 6S. The state
ment continues:
on thirty of these he gave rebates as 11 f6i
ss%s5 9%s o ssyen n D9Iicyhodsrs Eet : er rtae
sent s re2a5e four got % Per cent re5aJe thrs got
got q per cent rebate and one got IS per ce1t re-
ranging from &Sa a %S9 doWn TO %s 81 g sua5s Tss
T Ions; not & 5eing posted as TO Tarbes methods re
not 70 have been favored from the records. WifH
out representing sSoOO insurance This fI busines
en-, the second years premiums Iapsed 81 per cent
De!iS ABOUT tne same as the lapsed ratio of bJsi-
: IN December 1880 TarbelI wrote four men i,
memory is sui bad f9r s d Pc ese5 sIV1R ndr nm If his
rebate OF
The managers and agents OF the society have
Try. during the last twelve years heard Tarben
6oaSt ] oi MS is wonderful work OF one afternoon with
Company. He stated that he insured -four of Jhess
The facts about this wonderful transaction. as
brothers were insured for $4,000 e each and re-
ceved rebates Of 66 per cent; the other two who
The total premiums on these policies we're S15 Ses
and the amount paid in notes and cash was only
Pg0minsRt banker o. e Milwaukee bought Of tas
amounting to S1OOOC0-two for $4,000 each and one
for $1,000 the premiums on the three policies being
$3.50 FOR a.d52 giving an average rebate OF S. per
cent; on the two pohc4sS an averase reoate was
given OF 80 per cent and on the one for $4,000 the
MUM Of sS1lG was sold for 1900 rebate showing
Two policies of $4,000 each. premiums amounting
to 5000 on the two. were sold for $50. rebate OF
Two brothers. prominent bankers of Milwaukee.
we're sold policies. one for 10000 premium Sooo.
the other brother sold policy for $4,000 pre-
q ~ Is
better than his brother in the shape Of rebafes
HIS record and his work as rebater in Chicago
Of marked ability and integrity have found i up
hill work TO produce any business on a correct
in Chicago the same basis as TarbeIl. but was
punished for the same.
was sent to Michigan to dismiss Connors, Of
Detroit from the service Of the society for rebat-
ing, because the attention OF the Insurance CON-
missioner Of Michigan was called to Connors's re-
the company that something be done to stop the
Before Connors was working in Michigan he had
been connected with the Kentucky agency; and he
tcular from the methods used and the rebatng that
was being done in that State. with which fact
Tarben COnversant-
PENALTY FOR REBATES DISMISSAL.
sued by the Equitable Life, and taken from the
Equitabe's rate book and Is written the sig
nature Of Gage T. Taroei' as second viee-president
Every agent Of this society is forbidden to pay
premium in any manner whatsoever. directly or in
directly This rule shall apply 10 any person vh,
soIicits or writes an application for the sccietv
or employed 10 work for the so.Iety in arv ofIer
going rule shall be immediate dismissal from the
service Of the society. E. TARBELL-
Second Vice-president
Mr., Knowles. evidently ranking under the
double indignity OF being suspended and then
dismissed. asks why Mr.. Alexander. after sus-
pending him on April IA. found it necessary to
humiliate him still further by canceHiug his
contract on April % This says Mr.. Knowles.
was said 10 have been done because he had vSo-
lated the orders of the Frick committee not 10
discuss the affairs TO go before the investi-
eating committee
LAS 1 was suspended on April IA and I was
not an officer or agent or manager OF the so
cety." said Mr.. Knowles. Il did not receive any
notice of the resolution passed by the executive