The free lance. (Fredericksburg, Va.) 1885-1926, 1905-12-09
9HG INSURANCE PROBE
Depew Resigns From Equitable Life
As a Director.
MCCALL MAY LEAVE N. y LIFE

MCCALL MAY LEAVE N. Y. LIZ (
Charles M. Turner, President Of the
Security Mutual Life Insurance Com
pany Of Binghamton, N. Y, Tells
Of the Operations Of That Company.
New York. Dec. THE resignation
OF United States Senator Chauncey NJ
Depew as n director OF the Equitable
Life Assurance Society was one OF the
most interesting developments in the
situation growing out of the life insur-
ance Investigation. The senator's resig-
nation was rendered to President Paul
Morton. OF the Equitable Society. in a
brief note, in which no reason for II
was stated. and was as follows.
"Washiuaton. Dec. (. 1903.
paul Morton. President Of the Equit-
fAle Life Assurance Society.
Dear Sir i hereby tender my resig-
nation as director Of me Equitable Life
Assurance Society. Yours yefy truly
"CHAUNcEI VI. DEEPEN.
The rcpor, was published that Presi-
dent John A. Mccall. OF the New York
life Insurance Company viii resign
from that company before the next
annual meeting of the tru tc's in
April end that if he does not tender
his RESIGNATION nj a meeting OF the
trustees next Wednesday he viii re.
frain ONLY 90 the request oi the trus-
tees. who. the report seid 90 not wish
tn have 60 elect a temporary pr'sl'
dent. The published report also stat
cd that thc presidency OF the New
lork Lille Insurance Company has
been offered to John Claim. "a trustee
of that company and president Of the
I II. %. ClaGln Company and that Mr..
/ Clafin has refused TO accept the Office.
Tie attention of the lcei latiFe in
vesulatn- committee was devoted
chiefly 10 The affairs of the Security
Mutual Life Insurance Company OF
Binghamton y y whose president
/ Charles VI. Turner. was on the witness
stand most OF the day. His testimony
and The reading OF many contract sery-
cd 10 describe I'm detail the organiza-
/ ton o. the Agency and Investment
Company. of Bineaamtcn I'm 1898 This
company paid the salary of the prcsi-
dent Of the Security Mutual Life In
surance Company az first; advanced
/ d money amounting TO $4,000. agreed
10 furnish IL with insurance business
al the rate OF S5.000.000 a year. and
received i'm return a per cent com
mission on all new premiums on the
| insurance written by the company
The stock of this agency company,
which amounted 10 sl25.000 President
/ Turner said. was issued TO himself and
his associates i'm the Security Mutual
Life in payment for the money they
advanced to the insurance company.
/ II covered also. he said. a 10000 COM
pensatlon 10 himself. and what Charles
Z. Hughes counsel for the committee.
called "$2S.000 OF velvet
President Turner testified that the
agency company collected its commits
sions. but dill not furnish the insurance
/ It promised. After two years the stock
Of the agency company was increased
tosi75. O00. and OF the $4,000 increase.
10000 was advanced directly to the
insurance company. and 10000, Mr..
! Turner said. was advanced TO Morton
D. Moss. a general agent Of the com
pany. 4 new contract was then made
| between the two companies. by which
| the insurance company agreed 10 pay
to the agency company enough money
annually to pay the salary Of Presi-
dent Turner. the expenses OF the
agency company and also - per cent.
dividends on the whole OF the agency
company's stock President Turner
said that contract still Is I'm force He
testified that he now holds 100000 Of
the agency company's stock. and that
most Of the officers and directors G.
/ the Security Mutual Life Insurance
own stool, iu the agency company
Mr. Hughes asked President Turner
# he had adopted the agency pan in
preference 10 making the insurance
company into a stock company Mr..
Turner replied that he could not have
made the Insurance company into n
stool, company and that the company
needed tho advances which were made
b. the agency company.