The Birmingham age-herald., 1905-09-29
More Sensations in the Insur-
 ancs Investigation
BOUGHT UP RIVAL AGENTS
Handsome Sums Were Paid to Equit- able Employees In Buffalo to Come Over to the New
 York Life.

New York, September B.-SeVeral sen sational incidents developed at the session of the investigating committee on life insurance today. The first was when George w. Perkins, vice president Of the New York Life Insurance company and a member of the firm of J. P. Morgan x Co.,. objected to producing the books or his firm showing certain transaction of that firm with the New York Life. MT. Perkins offered to present copy of the entry In question from the books, but Mr Hughes demanded the books after several refusals on the part of MT Perk- ins. The books will be produced later.
 In the course of his testimony MT. Perkins, when asked concerning the diff ference in the statement of the profits from securities" in the Massachusetts re- port of the company, and Of met prohts from securities" in the New York report said
 .When we get national supervision we wont have these conflicts between the diff ferent states"
 MT. Perkins testified to a number of transactions in which he represented Nor gan 9& Co., as sellers and the New York Life company as purchaser
 Another sensation was sprung later in the day when Vice President Thomas A. RucItner of the New York Life Insurance company detailed the advances made to agents and which were carried in the re- suit to the state superintendent of insur- ance as "commuting renewal premiums
 Were Really Loans.
 It was brought out a matter Of fact that these advances were loans, but were not carried as such. MT. Buckner testl- fled that advances were made to agents sometimes as Inducements to leave other companies, and enter the employ or the New Lork Life. oo, between the Equitable and the New YorK F Life was brought out and in order to get agents of the Equitable away rom thal company liberal advances and liberal con tracts were made by the New fork Llle. Mr Burkner testified that these advances to agents in the Buffalo branch Of the Now York Life in 1902 alone exceeded py s4S OOO the amount really earned by these agents Later MT. Buckner acknoWledged this was most extrayagant and salu III 1903 the amount was cut down by hall, and by half the remaining amount Tn lso4 A copy of contract and confidential letter 10 David H. Desbecker of Buffalo, one of the agents In question, showing the Inducements held out for him to en- fer the employ of the New York Life
 
 nlementary contract reads as follows:
 Formal Contract Made.
 ..Confidential. N. r., October H. 1901 "David H. Desbecker, Buffalo, N. Y.
 Dear Sir:-Referring to your agreement with this company of even date, herewith and subject to all its terms and condi- tions, 1t Is agreed that if the business closed and paid for by you between this date and December 31, 19O3 term insur- ance excepted, equal s4OO0OO, you will De entitled to a bonus of 5000 In cash; 1T YOU write and pay for s6OO,000 in that time you will be entitled to an additional bonus of 5000 in cash; if the amount equal SS0O- OOO you will be entitled to and De palu still further sum of 5000 in cash; and if the amount equal million dollars you will be entitled to an additional $l0OO, making total in that event of $4O0o
 .Now the New York Life Insurance company is so sanguine that you will write this latter amount, it agrees that your bonus shall not be less than $3oOO on the business written by you between this date and December 31, 1903, irrespec- tive of the amount and in addition to any other source of compensation under your contract; that $35o0 Is to be available as herein prescribed, 5000 in cash when you sign the contract, and the remaining $l5OO will be due you absolutely as bonus on December 31. 1903. But this $500 remaining bonus shall De dNdlldDle lO you III lne following manner: As a loan to be abso- Iutely liquidated and paid by you on December 31 1903, if you are still in the service of this company that S500 avail able when the first $l0,000 of the premium is paid for; $500 when the second S50,0OO of business is paid for. $500 when the third s50 GOO of business Is paid for.
 ..It shall also be a matter of contract between you and the company that should in any year your business equal or exceed s1O00Oo. all paid up business term in surance ascepted) you will be entitled to a commission of per cent on renewal premiums paid on thirty year insurance in accordance with the rates speclheo III Artile 20 of that agreement
 gro further facilitate your business with the New York Life Insurance com pany 1t Is mutually understood that you will have a working balance to your credit of sl5O0 for the first year of your contract Said s15O0 is available to you in cash not exceeding s9O a week rms $500 is simply and advance and Is to De charged to your account.
 ''It Is further understood and agreed that this $500 is to relate to only one year of your contract, an your bonlnS@s to extend up only to the time mentioned. And it is further agreed in the contract that these terms shall not affect the terms of your other branch office con- tract with the company. Yours truly
 "N. Y. LIFE INSURANCE CO, By THOMAS H. BUCKNER, Fourth Vice President
 Approved 18th day of November. 1901" {" This Is the contract under which Mr. Desbecker, with a number of other agents. entered the employ of the New York Life in Buffalo
 Clash With MT. Hughes.
 While Mir Perkins was on the stand during the afternoon there was somewhat of a claSh between the witness and Mr. Hughes. the first of anything of this na- ture that has occurred since the commit tee began it's sessions. It was when Mr. Perkins was festifying to the moneys in the Nylic fun3 of which he Is trustee
 MT. Perkins diU not want it to appear on the records that the agents paid part of their salaries inso the fund under con- tract unless the words ''and bonuses ap- peared He said to MT. Hughes that he (Mr Hughes) was trying to get away from something. and the counsel hotly