Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1905-09-30
CLEVELAND'S TASK
Ex-President Finds Equitable
Hard TO Mutualize.
MIR. Hughes Read letter From Great
Assurance society TruStee--Thona-
rs A. .Bnckner Explains
"Nylicr SsStcrN.

Us A. -BnchneF Explains
.sNylic~ SsSscra.
NEW YORK. Sept, ~. syndicate
operations Of the Equitable Life Assur
ance society were taken up by the in
surance investigating committee aA
consumed the entire session. Henry II
Winthrop, assistant secretary and
financial manager of that society, wa4
called to the stand and presented and
swore to record of syndicate paruci
pations of his company, also to rec.
ord of sales and purchases OF securi
ties for the past FIVE years He detail.
ed as far as he was able the transae.
tons of the syndicate of y H. Hyde
and associates 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 Allan,
tic Coast line bonds, In which ~ ii.
Hyde and associates, the Equitable
participating as member, paid 81.
3T6,oQ6 on call and received S114,5 800
profits Mr.. Winthrop said there was
nothing on the Equitable books to
show who the associates" were nor
what was Mr. Iydes personal profit
The Equitable participated also in q
Union Pacific syndicate in the name OF
j. Ii. Hyde. and when asked by what
authority the society assumed the re-
sponsibility of Mr. Hydes personal OPP
erations Mr. Winthrop produced the
minutes of the finance committee in
July. 1905. showing written assign
ment to the company by Mr. Hyde of
his interest in this syndicate. The so
ciety paid into that syndicate $1,670,-
GOO. Much of the information desired
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 long letter
from Grover Cleveland, who is a trus-
tee for the policy holders in the Equi-
table society under the Thomas Il.
Ryan agreement. The letter was of
fered in evidence.
Mr.. Cleveland detailed the progress
of the trustees in mutualizing the com
pand and said .'the obstacles that lie in
the path of the proposed naturalization
are so inherent that even with the
greatest study and care they cannot be
easily overcome
In conclusion Mr.. Cleveland said, I'm
common with all others who desire the
of business, where people have so
much at stake, the trustees acting for.
the policy holders of the Equitable SO
| ciety will gladly welcome any aid in
theiI. work which may result from the
labors of your committee
Thomas A. Buckner, vice president
of the New York Life Insurance com
pany, described the agency system of
the company and the method Of pay
ing bonuses. A "Nylic" system, inau-
gurated by this company. separating
the agents who create business into
grades according to the term Of serv7
ice, was explained, and these bonuses,
Mr.. Buckner testified, were charged to
renewal premiums. Moneys received
by agents from "Nylic," Mr. Buckner
said, were in addition to the regular
agents commissions.
Witness said when asked how expen-
sive such a system might be that the
total payments to "Nylic" members
aggregated less than per cent Of the
total premiums.
Mr.. Hughes asked for full state
ments Of the business written in the
United States and Canada, also sepa-
rate statements relating to foreign
countries showing premiums and com.
missions paid, that it might be ascet
tanned how much if any the business OF
the New York Life Insurance company
was being extended in the foreign
| field at the expense Of the American
policy holder.
The committee then adjourned until
next Wednesday
A Paris dispatch says that Andrew
Hamilton, personal counsel to Presl-
dent John A. Mccall of the New York
Life Insurance company, has reached
Biarritz after completing an automo-
bile tour through the south of France.
He was met at Biarritz by telegraph
ic inquiry relative 10 the 100000
check made out to him by the New
York Life Insurance company, to
which he replied by wire as follows:
"You can deny for me that the check
for 100000 TO me from the New York
Life in March, 1904, was, as, asserted
In New York, for purposes of influence
ing state legislation or that 1t was so
used
Commissioners Blame Kelly.