The free lance. (Fredericksburg, Va.) 1885-1926, 1905-10-03

Perkins Refused z quest of Insur-
ance ProJers AID men Relented.
NEW YORK LIES PAID BONUSES
In order to Get Agents Away From


Equitable. Liberal Advances and
Contracts Were Nade-Psrkins and
Lawyer Hughes Clash.
New York. sept. % Several sensa-
t.onal incidents developed at the SEES
zion of the legislative committee on
life insurance investigation. The srst
was when George W Perkins. vice
president OF the New York Life lnsur-
ance company and a member OF the
firm OF ]. p Morgan a. Co. objected TO
producing the books OF his firm show
ing A certain transaction OF that firm
with the New York Life. Mr. Perkins
offered 10 present a copy OF the entry
in question from the books. but Mr..
hughes demanded the books after sew
erel refusals on the part of Mr.. Per-
klns. The books will be produced.
In the course Of his testimony Mr..
Perkins asked concerning the differ
ence in the statement Of profits from
securities" in the Massachusetts, report
Of the company and OF net profits
from securities in the New York re-
port said. When we get national SUI
pervislon we won't have these con-
flicts between the different states
Mr.. Perkins testified TO a number OF
transactions in which he represented
Morsan & Co. as seller and the New
York Life as purchaser.
Another sensation was sprung later
when Vice President Thomas A. Buck
ner. OF the New York Life. detailed the
advances made 10 agents and which
were carried in the report 10 the state
superintendent of insurance as com
muting renewal premiums"
1t was brought out as matter oil
fact that these advances were loans.
but we're not carried as such. Mr..
Buckner testified that advances were
made to agents sometimes as induce
ments 70 leave other companies and
enter the employ of the New York Life.
A situation of conflict in Buffalo In
1901 between the Equitable and the
New York Life was brought out. and
in order 10 get agents OF the Equitable
away from that company liberal ad-
yances and liberal contracts were
made hv the New York Life Mr.
Buckner testified that these advances
10 AGENTS in the Buffalo branch of the
New York Life in 1902 alone exceeded
bv $4,000 the amount really earned
bv these AGENTS. Later Mr.. Buckner
acknowledged this was most extrava-
CANT and said in 1903 the amount was
cut down by half and by half the re-
naming amount in 1904.
A copy OF a contract and conhden-
tial letter 10 David H. Desbecker. Of
Buffalo. one Of the agents in question,
showing the inducements held out for
him TO enter the employ Of the New
York Life was read. The confidential
letter showed that the New York Life
agreed to pay Mr.. Desbecker a bonus
OF $4,000 and 70 make certain advances
to him. Any return for these advances
Mr.. Buckner said were carried as an
asset until the end of the year and
then they were charged off to profit
and loss
While Mr.. Perkins was on the stand
there was somewhat of a clash be-
tween the witness and Mr.. Hughes. It
was when Mr.. Perkins was testifying
10 the moneys in the "nylic" fund, OF
which he is trustee Mr.. Perkins did
not want IT to appear on the records
that the agents paid part Of their sal
aries into the fund under contract, I'M
less the words land bonuses appear
ed. He said to Mr.. Hughes that he
(Mr. Hughes was trying 10 get away
from something and the counsel holly
retorted that he was not and that II
Mr.. Perkins would answer his ques-
ton much better progress would be
made with the investigation.
Earlier in the day Henry r. Win
throp. of the Equitable. while on the
stand presented a statement Of the
transfers OF the stock Of the Equitable
at the time of its change OF manage
ment and the directorate. Most Of the
transfers Mr.. Winthrop was able TO
explain. but some he was not. At the
time Of these transfers Mr.. Winthrop
was the holder Of % shares He
thought the actual owner was James
H. HYDE. as he turned the checks for
dividends over to Mr. Hyde.