Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-22
INSURANCE INQUIRY
Large Crowd Eager to Hear
Testimony.
BUCKNER ON STAND
THE FIRST VICE PRESIDENT
ANSWERS.
Henry Dempsey, Cashier Of Citizens
National Bank, Failed
to Appear.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. September 22.-When the
leg slative committee continued this morn
ing its Investigations into life Insurance
com panies doing business in the state, the
aldermanic chamber was again filled with a
large. crowd eager to be instructed in the
mysteries Of the agency department.
Thomas A. Buckner, fourth vice president
Of the New York Life Insurance Company.
and manager of the agents of that concern,
was the first witness. Prior to his taking
the stand the clerk called the name of
Henry Dempsey, cashier of the Citizens
National Bank. No one, however responded.
Mr. Hughes spent some tins getting an
explanation from Mr.. Buckner of the
agency system, known as the Nylic scheme.
Il was asking you yesterday certain ques-
tons in regard to the Nylic system for the
compensation of agents. 1 have here book
explaining 1t. dated 1885,
Think" Mr.. Buckner replied, that the
first book relating to the system was pub
lished in November, 1885"
Mr.. Hughes offered the book in evidence.
VIII you briefly state the Nylic's scheme
as 1t refers to producing agents?"
The Nylic Is body of men drawn from
those who get business for US to give per-
manency to the agents system
I'VE believe it helps US to keep good
men,"
Before telling us it's benefits let us
know what the system is"
1T Is system OF compensating agents
In lieu of the renewal system"
classes"
Yes, the Nylic freshmen. Nylics of the
first degree Of the second degree, of the
third degree and senior Nylics''
When this system was instituted who
were admitted as freshmen Nylics?
Every agent who had contract with us
and who giving his firoo 70 fb,
work Some arrangements were made
about qualifying men who were giving
part of their time"
First Instituted.
Let us look at the system as it was first
instituted In 1896. The period of service
for freshmen was five years. with the I'M
Outstanding that If they wrote less than
$4,000 worth Of business any year they
would have to begin all over again"
Yes, although some exceptions were
made in favor Of part time men,.
Did the freshmen Nylic get any COM
pensation?'
No: they were merely qualifying for a
"A Nylic Of the first degree" Mr.. Hughes
continued, was to receive 90 cents per
month a thousand for the business whiSh
he had written during his year Of smallest
production as a freshman?
Yes: he got Sc year a thousand on the
basis of smallest production
linen ne must produce Nyllc OF the
first degree. $4,000 worth of business Of the
first degree for five years more. If he
failed
He lost everything and had to begin
all over again, although there were some
exceptions as to sickness"
when he becomes a Nylic Of the second
degree he receives 81 month for every
$1,000 worth of business written during his
year of smallest production of his second
period of Nylicism, If may use the teEm?
Mr.. Burckner nodded his head affirma-
lively.
At the end of five years a man becomes
Nylic of the third degree. He Is entitled to
monthly payment Of $3.50 per thousand
for all new insurance business secured by
him while he was a Nylic of the second de-
gree. This period also lasts for Ave years.
An agent becomes senior Nylic after
twenty years service. during which he has
secured business of not less than SIS 600 in
any year. Having reached this degree he
is entitled to monthly payment Of IS
cents per $1,000 on an average of business
secured during the previous twenty years
The only condition Is that whatever busi-
ness. II any. the man may write after this
time shall be turned into the New York
Life.