Valentine Democrat. (Valentine, Neb.) 1900-1930, 1905-10-05
Record-Herald.
AGENTS GROW RICH.
Secrets as to How New York Company
Enriches EmplOres.

That nearly all of the first year pre-
NUNS on new business brought to the
New York Life Insurance Company goes
back to the pockets Of the agents was
shown during the session of the Arm
| strong investigating committee in New
York Friday. In one year, according to
the testimony, the total direct and indi
| rect cost of the new insurance was lit
tie less than $13,O00,OOO, and the first
year premiums on the same new insur-
ance amounted to little over $13,OOO,-
900. Theoretically an insurance COM
pany must not pay over 80 per cent OF
the first premiums.
This and many other secrets of the or
ders Of life insurance were laid bare
when InQuisitor Hughes turned his in
vestigation to the "Nylic," the organiza
| ton of the companys agents and agency
directors, which, it was revealed, was
| designed to give away money to New
York Life employees.
| For a time Mr.. Hughes switched to the
Equitable and its affairs, reading letter
which he had just received from Grover
! Cleveland, who told what had been done
| by the Ryan trustees toward mutualiZing
| the society. Mr.. Cleveland declared he
and his associates were well satisfied
with the progress of their work, although
| realizing the great difficulties that We're
before them.
Regarding the Nylic, Mr.. Hughes first
discovered that it is divided into two
branches and that its sole purpose is to
furnish bonuses for employees. The Nylic
for agents provides them with money in
excess of their earnings as solicitors and
writer's of insurance. The Nylic for
agency directors does practically the
same service for salaried agents. This
interesting institution is peculiar to the
New York Life and takes its name from
the initial letters in the words making
up the charter name.
The Nylic has various degrees, like
other orders. The degrees run from
freshman Nylic, through first, second and
third degree Nylics to senior Nylics.
There are only three senior Nylics in
the service of the New York Life. There
are 400 freshman Nyics and 504 Nylics
of the first, second and third degrees.
making a total of 91G Nylics Of the main
body.
In addition to the Nylics there are
about 5000 ordinary agents working on
commissions and getting no profit out
of the Nylic. Only the active commits
sion agent who writes as much as $50
600 year can be Nylic. Up to a short
time ago it required only $4,000 insur-
ance work to make 4 man a Nylic.
The association is mighty thing for
certain agents. \ senior Nylic is a man
who does not have to work at ALL All
he has to do is to draw enormous com
missions every month on the insurance
he has written in the past. Vice Prcsi-
dent Buckner said man would hay
an independent income after being a
Nylic for twenty years.
A senior Nylic gets a commission of
81 a month for every 81 900 of insurance
he has written that is still in force Up
to a short time ago he got $50 a month
per $1,000 Then, if he had $1,000. 900
insurance in force, he was paid S1.JG0
month without working. The other de-
grees of the Nylic do not give such great
advantages. A freshman Nylic gets only
% cents per month per $1,000 until he
has worked five years, then he goes up
by degrees every five years. 4 senior
Nylic with 100000 insurance in force
would draw under the old plan $4,000
month and continue to draw this amount
until his death.