The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-09-23
Its Syndicate Participa-
tions Were Reviewed.
LETTER. FROM GROVER
Says Obstacles That Lie in The Patch
Of the Proposed naturalization are
So Inherent That Even With the
Greatest Study They Cannot
Easily be Overcome.
CBv the Associated Press.)

New York, Sept. 22.-Syndicate op-
erations of the Equitable Life As
surance Society were taken up by the
insurance investigation committee
today and consumed the entire after
noon session. Henry r. Winthrop,
assistant secretary and financial man.
ager of that society, was called to the
stand Immediately after the recess
and presented and swore to a record
of syndicate participations of his
company, also to a record of sales
and purchases of securities for the
past five years. He detailed as far
as he was able the transactions of the
syndicate of u. H. Hyde and asso-
ciates'' and took memoranda of all
information he was unable to supply,
which is to be presented at a later
date.
One of the operations was in the
Atlantic Coast Line bonds in which
j. II. Hyde and associates, the
Equitable participating as member,
pald $1,376,096 on call and received
$I14,5OO profits. Mr.. Winthrop said
there was nothing on the Equi.aoie LADY,
books to show who the associates
were nor what was Mr.. Hyde's per-
sonal profit.
The Equitable participated also IN
a Union Pacific syndicate in the name
of j. III. Hyde and when asked gpy
what authority the society assumed
the responsibility of Mr.. Hyde's per-
sonaI operations Mr.. winthrop pro-
duced the minutes of the hnance
committee in. July, 1905, showing a
written assignment to the company
nv Mr.. HYDE of his interest in this
The society had paid into that syn
dicate S1.670,000. Much of the infof-
nation desired in regard to these syn,
dicate operations Mr.. Winthrop said
he would have to look up, ana supply
later.
amined Mr.. Hughes read long letter
from Grover Cleveland who is trus-
tee for the policyholders in the Equll-
able Society, under the Ihomas
Rvan trust agreement. The letter
was offered in evidence Mr. CleVeidIio
detailed the progress OF the trustees
i'm mutualizing the company ana sdlu
"The obstacles that lie in the patcn
of the proposed mutualizauon are so
inherent that even with the grealest
study and care they cannot De seasiiS
overcome.
In conclusion Mr. Cleveland said;
"In common with all others who
desire the best conditions in TINS I'M
IL
nortant field of business where people
have so much at stake the trustees
acting for the policyholders OF the
Eo,1itable Society will gladly welcome
am aid i'm their work which may re-
sult from the labors of your commit
tee
Buckner. vice-presldeht OF the Nc"
work. Life Insurance Company, de-
scrihed the agency system of the com
nanv and the method OF paying
bonuses. -,
A "Nylic" system. inaugurated by
this company, separating the agents
who create business into grades dc'
cording to term of service was eA
nlained and these bonuses Mr. BUCK
ner testified were charged to reheWd
premiums. Moneys received Wy
agents from "Nyiic," MI. Buckiiei
said were in addition 10 lle
agents commissions.
Witness said. when asked how eA'
pensive such system might be, ina
the total payments to 'Nylic menper'
aggregated less than one per cent "
the total premiums.
Mr.. Buckner was unable TO Suppi!
considerable amount OF Information
desired but will do SO at later pc
riod.
Mr. Hughes asked for full state
ments of the business written Ill thS
United States and Canada, also sepa
rate statements relating to forelsi
countries showing premiums and COM
missions paid that it might be ascef-
tanned how much, if any, the business
OF the New York Life Insurance Com
pany was being extended in the for
eign field at the expense of the Amefi
can policyholders.
The committee adjourned unit
next Wednesday, Senator Armstrong
chairman of the committee, announc'
ing that the three @@,--' session this
week seemed so successful that i
would be tried next week and if mat
fer for the counsel came in as readily
as il has been doing, the sessions here
after will be held but three days I
week.