New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-31
MR.. TARBELL'S REBATES
Agent Tells of Instructions He
ReceiUed.

nesses end entering on the record & vast amoun'
of written evidence.
One Of the last duties of the committee was
to hear q report on the failure of Ex-Governor
Hirl TO appear as witness. Mr.. Hill had neen
asked some time ago TO come TO town ana e@-
plain what he did for the $1,000 retainer he re-
ceived for several years from the Equitable III
explained that Mr. Hill had INFORMED the
committee by telegraph that he was TOO Ill 10
attend its sessions and at the same time hao
protested against the adjournment or the IN
vestigatfon without giving him q chance to De
heard or at least, appointing Subcommittee
TO take his testimony. Senator Armstrong ac-
Quilted Mr. Hill OF any improper motive IN re-
manning at his home and said that his testl-
rnony would be got before the committee, IL II
possible.
Another sick man was Gage E. Tarbell. George
H siokIes, Of Buffalo. former Equitable agent
told about Mr. Tarbells alleged attitude to"aru
rebates and it was desired to give him chance
10 reply. Yesterdal afternoon. after a con-
ference with representatives Of the Equitable
Mr.. Hughes announced that he had been IN
formed that Mr. TarbelI was at Smithville ana
cou1d not be reached in time to reply to MT.
sickles. He suggested that Mr.. Tarbell be per-
mitted TO submit deposition under oath' IL ne
cared 70 do so. after the adjournment Chaf-
man Armstrong said this would be allowed
Mr. sickles described himself as a real estate
man living in Buffalo. and as having been gen
eraI manager of the Equitables Buffalo office
for six months. beginning in September 1888
After being assured that the statute OF limita-
lions would protect him from any evidence that
might incriminate himself, he told of rebating
lesson from Mr. Tarbell. Before taking the
Buffalo job. he said. he had had a talk with
Mr. Tarbeil in his Office in this city He hao
told Mr. Tarbell that he considered him, the
..nr4nce Of rebaters" and Mr.. Tarben had ac-
cepted the title. proceeding to explain now II
was done All an agent had to do was TO BUY
of policyholder letters of Introduction 10 frleos
who might want to be insured paying slVo
apiece. or any other sum, for the letters.
ONE REBATE METHOD.
In one case" said Mr. sickles, Il remember
he said to buy five letters of introduction from
the man at 500 apiece"
And YOU were to use them as you saw ft?'
asked Mr.. Hughes Tear them up. for in
>stance?"
letters" he added.
Did YOU give rebates?" asked Mr., Hughes
After being assured that he could not get him
self into trouble by answering. Mr.. Sickles said
that he did give rebates He declared that IN
Buffalo rebating was so common that an agent
cou1d not make any money, and so he left the
Euuitable's employ. He said that he explained
this TO MI Tarbell, but Mr.. Tarbell had no
comment to make.
Joel G. Van C1se actuary Of the Equitable,
was the first witness. He said that the only
time his work had ever been interfered with by
the management of the company was when
Henry B. Hyde wanted him to make the figures
larger than were earned on deferred divi-
dends That was about fifteen years ago. He
went to vice-President Alexander, he said, and
told him it would be bad thing. and Mr.. Alex
ander persuaded Mr.. Hyde to abandon his idea
He thought deferred dividends a great advan-
tage to an insurance company. They insured
a surplus and surplus test Of strength
TO q company.
You believe in a large fund besides the re-
serve" said Mr.. Hughes.
I do"
What percentage do you think ought to be.
reserved"
About 10 per cent
You believe that in mutual companies large
fund should be held IN excess of the reserve?"
Yes"
HAD ESTIMATED" EXPENSES.
Mr. Van else was asked If the Equitable had
ever kept a separate account with the idea of
finding out what was due to policies on divi-
Gends, He said that no such account had ever
been kept. The expenses for the various classes
Of policies had been estimated at about 15 per
cent on renewal premiums and 70 per cent
against the first years premiums
Mr.. Hughes went thoroughly into the methods
Of calculating deferred dividends Mr.. Van else
said that the calculations were based on the
hypothetical percentages Of Shepard Romans OF
1871 in the case of savings fund toQtine policies
and on Mr. Van Cises own hypothetical data in
the case of semi and free tontine policies Mr.
Hughes brought out that the actual percentages
varied he iDlafe soPS 70
He wanted to know why they did not make the
distributions according to facts instead of ap-
plying the Hypothetical data of 1871 and Mr.
Van else said that 1t would be impractical TO
do so. AS a matter Of theory, however, he said
it would be the proper method Of distribution
He admitted that the gain on interest loading
and lapseR. according to the present methods of
calculation, was a discrimination against certain
classes of policyholders.
Mr.. Van else admitted also that the animal
dividend policyholders had been depleted Of
their gains TO establish what he described as a
safety fund.-" but which Mr.. Hughes sought to
describe a reserve fund fund of this
kind. said Mr.. Van Cise. was necessary for safe
". Mr. Hughes wanted to know what interest
the annual dividend policyholders had in the
accumulated safety fund" now amounting to
100000 He replied that such policies as were
still in force would have a prospective interest
in future distribution. AS matter of fact Mr.
Van else admitted. many who had contributed
TO the accumulation would not share in the
distribution.
REBATES IN EQUITABLE
Mr. Huges read on the record the names of the
officers of the Equitable who were insured in the
company and who had received allowances "sub
stantially equivalent to the agents commits
sions." Tbs officers insured included Gage E.
Tarbell George T. Wilson, William Alexander