Waterbury evening Democrat. [volume] (Waterbury [Connecticut]) 1903-1917, 1905-09-23
CLEVELAND'S TASK.
Ex-President Finds Equitable
Hard to Mutualize.
HYDE AND ASSOCIATES pROBED.
MIR. Hughes Read Letter From Great
Assurance Society Trustee-Thom-
as A. BuclSner Explains
"NyIicn System.


NEW YORK, Sept. 23.-Syndicate
operations of the Equitable Life Assur.
ance society were taken up by the In.
surance investigating committee and
consumed the entire session. Henry r.
Winthrop, assistant secretary and
| financial manager of that society, was
called to the stand and presented and
swore to a record of syndicate partici.
pations Of his company, also to rec
ord of sales and purchases of securi-
| ties for the past five years. He detail
| ed as far as he was able the transac.
tons of the syndicate of u. Fl. Hyde
and associates" and took memoranda
Of all information he was unable to
supply, which is to be presented at a
later date.
One of the operations was In Allan.
tic Coast line bonds, in which 81. H.
Hyde and associates" the Equitable
participating as member, paid ST.
376,096 on call and received $114,500
profits. Mr.. Winthrop said there was
nothing on the Equitable books to
show who the Associates" were nor
what was Mr.. Hyde's personal profit.
The Equitable participated also In a
Union Pacific syndicate in the name Of
]. H. Hyde, and when asked by what
authority the society assumed the re-
sponsibility of Mr.. Hyde's personal op-
erations Mr.. Winthrop produced the
minutes of the finance committee in
July, 1905, showing a written assign
ment to the company by Mr.. Hyde of
his interest in this syndicate The So
ciety paid into that syndicate 1,670,-
000 Much of the information desired
in regard to these syndicate operations
Mr.. Winthrop said he would have to
look up and supply later.
Just before Mr.. Winthrop was exam
lined Mr.. Hughes read long letter
from Grover Cleveland, who is trus-
tee for the policy holders in the Equi-
table society under the Thomas F.
Ryan agreement. The letter was Of
fered in evidence.
Mr.. Cleveland detailed the progress
of the trustees In mutualizing the COM
pand 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 haveT1so
much at stake, the trustees acting for
the policy holders Of the Equitable So
ciety will gladly welcome any aid in
their work which may result from the
labors Of your committee.
Thomas A Buckner, vice president
of the New York Life Insurance COM
pany, described the agency system Of
the company and the method of pay
ing bonuses. A "Nylic" system, inau-
gurated by this company, separating
the agents who create business into
grades according to the term Of serv-
ice, was explained, and these bonuses.
Mr.. Buckner testified, were charged to
renewal premiums. Moneys received
by agents from "Nylic," Mr.. Buckner
said. were in addition to the regular
agents commissions.
Witness said when asked how expen-
sive such a system might be that the
total payments to "Nylic" members
aggregated less than / per cent Of the
total premiums.
Mr.. Hughes asked for full state
ments of the business written in the
United States and Canada, also sepa-
rate statements relating to foreign
countries showing premiums and COM
missions paid, thst it might be aseer-
tanned how much If any the business OF
the New York Life Insurance company
was being extended in the foreign
field at the expense Of the American
policy holder.
The committee then adjourned until
next Wednesday.
A Paris dispatch says that Andrew
Hamilton, personal counsel to Presi-
dent John A. Mccall Of the New York
Life Insurance company. mas reached
Biarritz after completing an automo-
bile tour through the south Of France.
He was met at Biarritz by a telegraph
ic inquiry relative to the 100000
check made out to him by the New
York Life Insurance company, to
which he replied by wire as follows:
You can deny for me that the check
for $4,000 to me from the New York
Life in March. 1904. was, as asserted
In New York. for purposes Of influence
ing state legislation or that Il was 50
used" .-....