Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1905-12-09
DEPEW OUT OF
THE EQUITABLE
Sends His Resignation As Director
to President Paul Morton.
MUTUAL sECURITY:UNDER FIRE

New York, Dec THE resignation
Of United States Senator Chauncey NJ.
Depew as director of the Equitable
Life Assurance Society was one or the
most interesting developments In the
situation growing out Of the life insur-
ance investigation. The senator's resig-
nation was rendered to President Paul
Morton. of the Equitable Society. In
brief note. In which no reason for It
was stated. and was as follows:
Washington. Dec. 4. 1905.
Paul Morton. President Of the Equit-
able Life Assurance Society.
Dear Sir hereby tender my resig-
nation US director of the Equitable Life
"CHAUNCEY NJ. DEPEW."
The report was published that Presi-
dent John A. Mccall. of the New York
life Insurance Company. will resign
from that company before the next
annual meeting Of the trustees In
April and that II he does not tender
his resignation at a meeting OF the
trustees next Wednesday, he will re-
frain only at the request of the trus.
tees. who. the report said. do not wish
to have to elect temporary presi.
dent. The published report also stat
ed that the presidency OF the New
York Life Insurance Company has
been offered to John Clafin. a trustee
OF that company. and president Of the
u. b. Clafin Company. and that Mr.
Claflin has refused to accept the ONCE.
The attention Of the legislative in.
vestigating committee was devoted
chiefly To the affairs of the Security
Mutual Life Insurance Company OF
Binghamton. n. Y, whose president.
Charles NJ Turner. was on the witness
stand most OF the day. His testimony
and the reading OF many contract serv.
ed to describe In detail the organiza.
ton OF the Agency and Investment
Company. of Binghamton, In 1893. This
company paid the salary of the presi.
dent OF the Security Mutual Life In.
surance Company at first: advanced
II money amounting to $4,000. agreed
to furnish Il with insurance business
at the rate OF $4,000. 900 a year. and
received In return a per cent. com.
mission on all new premiums on the
insurance written by the company.
The stock of this agency company.
which amounted to $l25.000. President
Turner said. was issued to himself and
his associates in the Security Mutual
Life in payment for the money they
advanced to the insurance company.
II covered also. he said. $4,000 com.
pensation to himself. and what Charles
r. Hughes. counsel for the committee,
called "s2S.000 of velvet"
President Turner testified that the
agency company collected its commits.
sions. but did not furnish the insurance
II promised After two years the stock
OF the agency company was Increased
to $4,000. and OF the $50. 900 increase.
s40.00O was advanced directly TO the
insurance company. and $4,000. Mr..
Turner said. was advanced to Morton
ID. Moss. general agent OF the com.
pany. 4 new contract was then made
between the two companies. by which
the insurance company agreed 70 pay
to the agency company enough money
annually to pay the salary OF Presi.
dent Turner the expenses Of the
agency company. and also II per cent.
dividends on the whole of the agency
companys stock President Turner
said that contract still Is In force. He
testified that he now holds 100000 OF
the agency company's stock. and that
most of the officers and directors OF
the Security Mutual Life Insurance
own stock In the agency company.