The Birmingham age-herald., 1905-09-23
NYL|C EXPLAINED BY MR. BUCKNER Agents .ProRIs Less Than 1 Per Gent of Premium CLEVELAND WRITES LETTER Says Regulation By Policy Holders Is Much More Pleasant to the Ear
 Than Practical In
 Operation.

operations of the Equitable Life Assur- ance society were taken up by the insur- ance investigating committee today and consumed the entire afternoon session. Henry R. Winthrop assistant secretary and financial manager of that society. was called to the stand immediately after the recess and swore to a record of sym dicate participation of his company, also to record of sales and purchases of securities for the past five years He de- tailed as far as he was able the transac- tions of the syndicate of U. H. Hyde and Associates'' and took memoranda of all in- formation he was unable to supply. which is to be presented at a later date.
 One of the investments was in Atlantic Coast Line bonds in which "J. H. Hyde and Associates the Equitable participant ing as a member paid N,S76,O96 on call, and received $l14500 profit. MT. Winthrop said there was nothing on the Equitable books to show who the associates were OF what was MT. Hyde's personal profit
 The Equitable participated also in a Union Pacific syndicate also In the name of "J. H. Hyde and Associates'' and when asked by what authority the society as- sumed the responsibility of MT. Hyde's personal operations, MT. Winthrop pro- duced the minutes of the finance com mittee of July, 1868, showing a written as- signment to the company by MT. Hyde of his interest in this syndicate.
 Reads Letter From Cleveland.
 The society had paid into the treasury $1. 670,000. Much of the information Ne- sired in regard to the syndicate opera uons MT Winthrop said, he would have to look up and supply later. Just before MT Winthrop was examined MT. Hughes a l.e..s. land, who is a trustee for the policy holders in the Equitable under the Thomas F. Ryan trust agreement The letter was placed in el i3once.
 At the morning session Thomas A. Buckner, vice president of the New York Life Insurance ompany, described the agency system of the company and the method of paying bonuses. A "Nylics system inaugurated by this company sep arating the agents who create business into grades according to term of service, was explained, and these bonuses, MT. Bunckner testified, were renewed prom ises. Money received by agents from Nylic. MT. Buckner said, were the regu- lar agents commissions. He said when asked how expensive such a system might be, that the total payments to "Nylic" members aggregated less than 1 per cent of the total premiums.
 The committee adjourned until next Wednesday, Senator Armstrong, chairman of the committee, announcing that three days session this week. seemed to be so successful, that it would be tried next week if the matter for the council came in as readily as 1t had been doing, the sessions hereafter being held but three days a week.
 The Days Proceedings.
 Upon the assembling of the committee, Thomas A. Buckner who has charge of that company's agencies and who was unable to answer number of questions yesterday without looking up records. was called to the stand. The matter of the "nylic accounts" was taken up. They included records of a system of bonuses paid to agents. Nylic, he said, was a body of men drawn from the ranks of agents who create business for his company. It is divided into five classes
 Divided Into Glasses.
 Freshmen, first, second and third de- gree and senior nylcs. The freshmen have a written contract with the company and must produce business paving not less than $5000 on premiums and give their entire time for five years. They are paid no salary but qualify for a higher degree. If there was default of dualifica- tions they were dropped and had to re- commence at the beginning. I ney receiv- ed 30 cents per thousand per month for all business written by them
 The first degree nylc must produce bus mess paying not less than $25, 1000 in prem iums year for five years to become A second degree nylic. The second deoree nylic received $1 per month per thousand If an agent secured premiums of s25 GOO year he becomes third degree nv lic This degree lasts five years It's mem bers received H.50 per month per thous- and and must also maintain the s250oo total of premiums. At the expiration of five years he becomes a senior and re- ceives 75 cents per month per thousand on new business over the average of insurance written during the previous twenty years. He need not give his entire time, but must not write for another company.
 When this system was devised If be- came retroactive and all the agents went into these grades according to their terms of service and amount of business written. None of these had served suffi- cient time to become senior nylics and at present the company has but three se niors.
 MT. Buckner said that what money agents got from the nylic was in addition to the regular agents commission. Wit ness stated that the cost of nvlic today Is one per cent of the renewal premiums NIT. iouckner Sdld tnlS system was in- valuable in holding their agents in solid arity.
 Aggregates Less Than One Per cnnt.
 MT. Buckner testified that the total payments to nylic members aggregated less than 1 per cent of the total prem iums. The company has 916 agents, who are members of the New York nylic and over 5000 who are not. It will be possible, MT. Buckner calculated for a man who had worked twenty years to retire ato- gether from active labor.
 A second nylic WIS lnaugurated Janu- ary l. 1902, for az ency directors, inspec- tors and supervisors in the United States, Canada, Mexico ant the West Indies.
 board of truste es was given control of fund made up by amounts contrib uted In part by the members and in part by the life insurance company. This fund was to be divided among the members in 1912 according to the amount of business written under the direction of the mem bers. The fund now amounts to s937,777.
 Severance Ends Benefits.
 Severance of connection with the com ordo oII tx ito in