The daily morning journal and courier., 1905-09-23
SYNDICATE OPERATIONS
 OF THE EQUITABLE LIFE
AGAIN TAKEN UP BY THE IN- iSURANCE INVESTIGATING
 COMMITTEE.

Assistant Secretary and Financial Man
 ager of the Society Tells of Some of
 the Transactions of "J. H. Hyde and Associates" -O One Transaction in
 Which the Books Show Nothing as to
 Who the "Associates" Were-Letter
 from Grover Cleveland Regarding
 Naturalization of the Society.
 New York, Sept. 22.-syndicate oper- ations of the Equitable Life Assurance society were taken up by the insurance Investigating committee to-day and consumed the entire afternoon session. Henry R. Winthrop, assistant secretary and financial manager of that society, was called to the stand immediately after the recess and presented and swore to a record of syndicate partici- pations of his company, also to rec ord 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 U. H. Hyde and asso- ciates," and took memoranda of all in formation he was unable to supply, which is to be presented at a later date.
 One of the operations was in Atlantic Coast Line bonds, in which "J. H. Hyde and associates the Equitable participating as a, member, paid $1,s76,- 096 on call and received $114,500 profits. MT. Winthrop said there was nothing on the Equitable books to show who the associates" were, nor what was Mir Hyde's personal profit.
 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 Mir. Hyde's personal op- eraticns MT. Winthrop produced the minutes of the finance committee in July, 1905,; showing a written assign ment to the company by MT. Hyde of his interest in this syndicate. The so- ciety had paid into that syndicate $1,- 670O00, Much of the information desir-. ed in regard to these syndicate opera tions MT. Winthrop said he would have to look up and supply later
 Just before MT. winthrop was exam ined MT. Hughes read long letter from Grover Cleveland, who is trus- tee for the policyholders in the Equita- ble society under the Thomas F. Ryan trust agreement. The letter was offer ed in evidence. MT. Cleveland detailed the progress of the trustees in mutual izing the company and said 'tf1e obsta- cles 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" Tn con- clusion Mir. Cleveland said: "In com mon with all others who desire the best conditions in this important field of business, where people have so much at stake, the trustees, acting for the policyholders of the Equitable society, will gladly welcome any aid in their work which may result from the labors of your committee"
 At the morning session Thomas A. Buckner, viee-president of the New York Life Insurance company, describ- ed the agency system of the company and the method of paying bonuses. A "Nylic" system, inaugurated by this company, separating the agents who create business into grades according to term of service, was explained, and these bonuses, MT. Buckner testified, were charged to renewal premiums. Monies received by agents from ''Nyl- ic," MT. Buckner said, were in addition to the regular agents commissions.
 Witness said, when asked how expen- sive such system might be, that the total payments to "Nylic" members ag- gregated less than one per cent. of the total premiums 3..
 Mir. Hughes asked for full statements of the business written in the United States and Canada, also separate state- ments relating to foreign countries, showing premiums and commissions paid, that it might be ascertained how much, if any, the business of the New York Life Insurance company was be- ing extended in the foreign field at the expense of the American polieyholders.
 The committee adjourned until next Wednesday, Senator Armstrong, chair man of the committee, announcing that the three-days' session this week seem- ed so successful that it would be tried next weck