Los Angeles herald., 1905-09-23
AGAIN PROBING
THE EQUITABLE
ITS SYNDICATE OPERATIONS
INVESTIGATED
Henry B. Winthrop Describes Trans
actions Of Hyde and Associates.
Long Letter From Mr..
Cleveland Read
By Associated Press.

BY Associated Press.
NEW YORK, Sept. 22.-Syndicate op-
erations of the Equitable Life Assur-
ance society were taken up by the in
surance investigating committee today
and consumed the entire afternoon ses-
sion. Henry B. Winthrop, assistant sec
retary and financial manager of that
society, was called to the stand imme-
diately after recess and presented a
sworn record of syndicate participa-
tions of his company; also 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 ~. H. Hyde and associ-
ates" and took memoranda of all in
formation he was unable to supply,
which is to be presented at later
date.
One of the operations was in Atlantic
Coast Line bonds in which ]. H. Hyde
and associates-the Equitable partici-
pating as a member-paid $1,S76,O96 on
call and received $114,5OO profits Mr..
Winthrop said there was nothing on the
Equitable books to show who the as
sociates' were nor what were Mr..
Hyde's personal profits.
The Equitable participated also in a
Union Pacific syndicate in the name of
j. H. Hyde and when asked by what
authority the society assumed the re-
sponsibility of Mr.. Hyde's personal OPP
erations Mr.. Winthrop produced the
July, 1905 showing a written assign
ment to the company by Mr.. Hyde OF
his interest in this syndicate.
The society had paid into that syndi-
cate $1,67O,OOO. Much of the information
in regard to these syndicate operations
Mr.. Winthrop said he would have to
look up and supply later.
Just before Mr.. Winthrop was exam
ined Mr.. Hughes read a long letter
from Grover Cleveland, who is a trus-
tee for the, policy holders in the Equit-
able under the Thomas F. Ryan trust
agreement. The letter was offered in
evidence. Mr.. Cleveland detailed the
progress of the trustees in mutualizing
the company and said:
Cleveland on naturalization
1.-The obstacles that lie in the path of
the proposed naturalization are so in
herent that even with the greatest
study and care they cannot be easily
overcome"
In conclusion Mr.. Cleveland said:
"In common with all others who de-
sire the best conditions in this impor-
tant field of business, where the people
have so much at stake, the trustees for
the policy holders of the Equitable So
ciety will gladly welcome any aid in
their work which may result from the
labors of your committee"
At the morning session Thomas A
Buckner, vice president of the New
York Life Insurance company, de-
scribed the agency system of the COM
pany and the method of paying bonus
A "Nylic" system inaugurated by this
company separating the agents who
are credited with business in grades ac-
cording to terms of servitude was eX-
planned and these bonsues, Mr. Buck
ner testified, were charged to renewa
premiums. Moneys received by agents
from "Nylic," Mr.. Buckner said, Were
in addition to the regular agents com
mission. Witness said, when asked how
expensive such a system might be
that the total payments to 'Nylic'
members aggregated less than pei
cent of the total premiums. He wa:
unable to supply a considerable amount
of information desired, but will do so al
a later period.
Mr.. Hughes asked for full statement:
of the insurance written in the United
States and Canada, also separate state
ments relating to foreign countries
showing premiums and commission:
paid, that it might be ascertained how
much, If any, the business of the New
York Life Insurance was being extend
ed in the foreign field at the expense
of the American policy holders.
The committee adjourned until mex
Wednesday, Senator Armstrong, chair
man of the committee, announcing tina
three days session this week seemed
] to be so successful that it would bt
tried next week and if the matter fo1
the counsel same in as readily as i
has been doing, the sessions hereafte
will be held but three days week.
-N~$-b