The Montgomery advertiser., 1905-09-29
SENSATIONS BROUGHT OUT
 ---s---- Breezy Times in Insurance | Investigation. GEO. ". PERKINS BALKS l Will Produce Morgan Books
 Under Protest. New York Life Makes Loans to Desir- able Agents whom It Wishes to Take From Competing Companies.

| ---9---- | Nskv York, Sept. 2s.--Several sensa- tionai incidents developed at the ses- l sion of the Legislative Committee on i life Insurance Investigation today I The first was when George w. Fer 1 kins, Vice President of the New fork 1 Life Insurance Company and mem ] Der of the firm of J. r. Morgan ano Company, objected to producing the hnnl1r off his firm showing a certain l transaction of that firm with the New York Life Mir. Perkins offered to present copy of the entry in ques- fion from the books. but Mir. Hughes demanded the books after several re- kusals on the part of Mir. Perkins. The books will be produced later. In ,the course of his testimony MT. Perklns, when asked concerning the difference fin the statement of 'pronts | frora xacuritiesp' fin the Massachusetts report of the company and of met proflts from securities" in the New York report, said:
 "When we get national supervision we won't have these conflicts between the different States"
 Mir. Perkins testified to a number or transactions In which he represented Morgan & Co. as sellers and the New York Life as purchaser.
  In the day when Vice-President Thom- as A. Buckner of the New York Life Insurance Company detailed the ad- yances made to agents and which were carried in the report to the State Su- perintendent of Insurance as "con1mut- ing renewal premiums" It was brought out as a matter of fact that these ad- vances were loans, but were not car rted as such. Mir. Buckner testified xayar Naadn fn agents sometimes as inducements to leave other companies and enter the employ of the New York Life.
 A situation of conflict in Buffalo in 1901 between the Equitable and the New York Life was brought out and in order to get agents of the Equitable away from that company. liberal ad- vances and liberal contracts were made by the New York LAfe.
 Acknowledges Extrnyawnnce.
 Afr. Buckner testified that these ad- yances tA agents In the Buffalo branch of the New York Life in 1909 alone exceeded by S4s,000 the amount really earned by these agents. Later Mfr. Buckner acknowledged this was most extravagant and said in 1908 the amount was cut down by half and by half tho remaining amount in 1904.
 A copy of a contract and a conhden- tial letter to David H. Desbeker of Buffalo. one of the agents in question. showing the Inducements held out for him to enter the employ of the New York Life. was read. The confidential letter or supplementary contract reads as follows:
 "confdential. New York, Oct. il. 1901. David H Desbecker, Buffalo, N. Y. Dear Sir: Referring to your agree ment with this company of even date. herewith, and subject to all its terms and conditions. it Is agreed that if the business closed and paid for by you between this date and December 31, 1903, term insurance excepted, equal $400.000 you will be entitled to q bonus of S1.000 In cash; If you write and pay for $600,000 in that time you will be entitled to an additional bonus of S1,- 900 in cash; if the amount equals $s00.- 900 you will be entitled to and be paid a still further sum of $1.000 in cash i; and if the amount equals a million dol- lars you will be entitled to an addi- tiona1 $1,00o. making s total in that event of 5000.
 Now the New York Life Insurance Company is so sanguine that you will write this latter amount 1t agrees that your bonus shall not be less than $S,bO0 on the business written by you between this date and December 31, 1903, irre- spective of the amount and in addition to any other source of compensatI atIon under your contract, that 33,500 is to be available as herein prescribed $2,000 in cash when you sign the con tract and the remaining $1,500 will be due you absolutely as a bonus on De- cember s1, 1903. But this 91,5o0 re- maining bonus shall be available to you in the following manner: As a loan to be absolutely liquidated and paid by you on December 31, 1903, if you are still in the service of the com pany. $500 available when the first S50,0 900 of business Is paid for: $500 when the second $50,000 of business is paid for: $500 when the third $50,00 of business is paid for.
 Renewal Commissions.
 Tt shall also be a matter of contract between you and the company that should in any year your business equal or exceed S100.000. all paid up business (term insurance excepted). you will be entitled to a commission of per cent renewal premiums on the third and fourth years insurance in addition to the rates specified in Section 20 of that agreement.
 ITO further facilitate your business with the company 1t is mutually under stood that you will have a working bal ance to your credit of $1.50O for the first year of your contract; said $1.500 IS aValldDIt NO yOA Cdbtl ttOb tACteu- ing S3O a week. This S1.500 is simply an advance and is to be charged to your account.
 Tt is further understood that this s1.5oO Is to relate to only enc year of your contract and your bonuses to ex- tend up only to the time mentioned. And it is further agreed in the con tract that these terms shall not affect the terms of your other branch oflce tract with the cOmDany
 Yours truly.
 New York Life Insurance Co."
 By Thomas H. Buckner,
 Fourth Vice President"
 "Annroved 18th day of Nov, 1901 g
 This is the contract under which Mr. Desbecker with a number of other agents entered the employ of the New York Life in Bunalo.
 while Mir. Perkins was on the stand durIn1 tbe afternoon there was some wbst of A clash between the witness and MT Hughes. the first of anything oI tbIs nature that has occurred since tha committee began it's session. It .ras u,ben Mir, Perkins was testifying ~. to ths moneys in the Nyllc fund. of which he is trustee.
 HuRbes' Hot RetOFt.
 ur perkins did not want 1t to appear or, th. records that the agents paid part of their salaries into the fund under