Omaha daily bee., 1905-09-23
TER READ FROM GROVER CLEVELAND
TIE INTEREST IN NATURALIZATION
Less Than Five Per Cent Of Policy Holders
Make Wishes Known to Trustees
NEW YORK LlFEs "NYLlC" SCHEME

Fioh ior raging HonuseH to Agents
for Securing Business Explained
by vice President
Buckner.
NEW YORK, Sept. 22.-Syndioate opera
tions Of the Equitable Life Assurance So
ciety were taken up by the insurance in
Nestigating Cummitte today and consumed
the entire afternoon session. Henry r.
Winthrop, assistant secretary and financial
manager OF that society, was called to tho
stand Immediately after recess and pre-
sented and swore to a record OF syndicate
participations OF his company, also to a
record OF sales and purchases OF securities
for the past five years. He detailed as far
as he was able the transactions OF tho
syndicate OF y. II. Hyde and associates"
and took memoranda OF all information he
was unable to supply. which is TO be pre-
sented at later date
One OF the operations was in Atlantic
Coast line bonds, in which -. H. Hyde and
associates, the Equitable participating as "A
member" paid Sl,376,O96 on call and received
Sl450O profits. Mr. winthrop said there
was nothing on the Equitable books to show
who the associates" were. nor what were
Mr.. Hydes personal profits
The Equitable participated also IN
! Union Pacific syndicate in the name Of J.
II. Hyde and when asked by what authority
the society assumed the responsibility OF
Mr.. Hydes personal operations Mr.. Win
throp produced the minutes OF the finance
committee In July. 1905, showing a written
assignment to the company by Mr. Hyde OF
his interest in this syndicate
J The society had paid into that syndicate
H,6700Oo Much OF the information desired
: in regard to these syndicate operations NJ.
/ Winthrop said he would have to look up
/ and supply later.
Letter from Mr.. Cleveland
! Just before Mr.. Winthrop was examined
Mr.. Hughes read long letter from Grover
Cleveland, who is a trustee for the policy
! holders in the Equitah BILE under the Thomas
/ +. Ryan trust agreement. The letter was
/ offered in evidence. Mr.. Cleveland detailed
/ the progress Of the trustees in mutualizing
/ the company. 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:
In common 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 policy
3 holders Of the Equlta BILE society viii gladly
welcome any aid in their work which may
NyIic system Explained.
Al the morning session Thomas A. Buck
ner. vice president of the New York Life
Insurance company. described the agency
system Of the company and the method Of
paying bonuses.
"Nylio" system inauEurated by this
company. separating the agents who create
business into grades according 10 term Of
service, was explained and three bonuses
made, BuCkner testified. were charged TO
renewal premiums. Monies received by
agents from "Nylic," Mr. Buckner said
were in addition 10 the regular agents
commissions.
Witness said when asked how expensive
such a system might he. that the total pay
ments 10 "Nylic" members aggregated less
than per cent Of the total premiums
Mr. Buckner was unable to supply a con-
siderable amount of information desired,
but will do so at a later period.
Mr. Hughes asked for full statements Of
the insurance written in the United States
and Canada, also separate statements re-
latng to foreign countries, showing pre-
miums and commissions paid. that Il might
he ascertained how much II any. the busi-
ness n the New York Life Insurance COM
pany was being extended in the foreign
field ~ the expense Of the American policy
holder.
The committee adjourned until next
Wednesday Senator Armstrong, chairman
, Of the committee, announcing that three
days session this week seemed TO be so
: successful that II would he tried next week
] and II the matter for the council came in
as readily it has been doing the sessions
I hereafter will be held but three days a
week.
E Mr. Buckner's Testimony,
Upon the assembling today OF the legis-
lative committee which is investigating the
life insurance business, Thomas A. Buck
ner. vice president Of the New York Life
! Insurance company. who has charge OF
that company's agencies and who was un,
able to answer a number OF questions yes
terday without looking up records. wa'
r called to the stand. The matter OF the
| ''Nyllc" accounts was taken up. They In
cluded records OF a system OF bonuses PAID
10 agents. "Eylic," he said. was a body o
men drawn from the ranks Of agents whC
i create business for his company. II is di
5 vided into five classes.
- Mr.. Buckner said that what money agent
= got from "Nylic" was in addition TO tht
Il regular agents. commission. Witness sta tec
e that the cost Of "Nyic" today is l pc
J. cent Of the renewal premiums. Mr.. Buck
ner said this system was invaluable Il
holding their agents in solidarity.
Severance OF connection with the com
pany ends all benefits in "Nylic," SVoep
d in case Of death, when provision Is mad
for payments 20 the estate OF a "Nyllc'
above the grade Of freshman for three t,
six months. Further post mortem benefit
were paid under resolution adopted II
i 1895, which provides that an agents estat
It may receive a sum equal 70 81 for ever
d s. 90 OF insurance written during the yea
Is preceding his death This, by vote OF IN
r trustees, was made an annual resolution
Is In the ten years this mortuary fund ha
p been expended witness testified that t23.
600 had been paid out for this purpose.
MI Buckner could not state the bOnu
& paid TO agents above their regular com
m missions under the "Nylic" system. but h
m thought Il was not a very great amount
He would supply this information later.
" Mr Buckner testified that the total pay
m ments 70 New York Life Insurance CON
pany members aggregated less than pc
cent Of the total premiums. The con
" pany has sls agents who are members q
& 40 nh, -