The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1902-11-21
PRUDENTIAL'S
NEW PLAN.
COntemplates Merger With the
Fidelity Trust Co. Of Newark.
Question of Future Administration
a Grave One-Aim of New Project
to Continue Present Management,
Retain Old Employees and Safe
guard Policy Holders.

Retain Old Employees and Safe
guard Policy Holders.
The Insurance Press of New York,
under the caption, "The Greatest
Question in Life Insurance is Pro-
vision for Future Administration
publishes two page article on the
Prudential Insurance Company and
Fidelity Trust Company merger, in
it's issue of the 18th instant, from
which we quote:
"No occurrence in the life insurance
business. for many years, has at
tracted so much attention as the pro-
posed community of interests"
between the Prudential Insurance
Company of America and the Fidel-
ity Trust Company of Newark, the
object of the proposed relations
between these corporations being
the perpetuation "of the present
management Iof the Prudential, both
in it's home Office and in the field"
In the closer alliance between the
two corporations, the officers of the
Prudential are convinced that they
have solved problem which every
well-managed life insurance COM
pany must attempt to solve, in the
interest of its policy holders, namely,
the safeguarding Of the company
against possible incidents or hostile
combinations whereby, sometime in
the future the administration of its
affairs might fail into unworthy
hands, to the detriment of the policy
holders and their benefciaries. 1t is
believed by some persons that life
insurance companies controlled by
capital stock are peculiarly exposed
to danger in this direction.
PRUDENTIAL STOCK NOT FOR SALE Ex-
cEPT FOR ONE PURPOSE.
1.-THE figure at which the present
owners of Prudential stock are to turn
their shares into the Trust Company
is probably lower than q controlling
interest conld be purhased for at this
time or at any other time, under differ
ent conditions. In fact the sale of a
controlling interest at any price,
under other conditions, is unthink-
able. The announced purpose of the
present plan is not speculative, but
to conserve the interest of policy.
holders and working staff in the long
years to come, the latter advancing
in the company's service under es-
tablished rules of promotion. The
officers own announcement is as
follows:
"The officers of the Prudential have
for d long time felt, in view of the
extraordinary growth of that COM
pany, and of it's future anticipated
growth, that the time has come when
in justice to it's four and half mil
lions of policyholders its control
and future management should be
safeguarded for all time in such a
manner that neither the death of its
officers nor any other agency that
human ingenuity can forsee can en-
danger the rights of it's polioyhol-
ders. When the company was
smaller, and the stock was closely
not so apparent Unless something
of this nature were done the stock of
the company in the years to come
would necessarily become more
scattered, and the control of the COM
pany more precarious. The
officers of the Prudential are united
in their belief that this move is of
the greatest possible benefit to its
stockholders, as we'll as to all of it's
policyholders and it's great army of
employees. The consummation of
this arrangement insures the con-
tinuance of the present management
of the Prudential, both in it's home
Office and in the field
Before the Dryden plan is to be
either approved or condemned 1t
should be fully understood by the
insurance world and the larger
public. The object of the Insurance
Press is to help toward a popular
understanding of several things:
~ That there is no greater life in
surance question today than how
the great companies are to be man
aged in the future; (2) that this
question is being studied, as of
right it ought to be studied, by every
life insurance executive in the land
(3)that the Prudential is the first life
insurance company to announce
definite plan to this end; (4) that
the Prudential asserts that it desires
full. free and fair discussion,
since it believes in publicity, and
would have its policyholders and
the rest of the public perceive and
understand the single object it has
in view; (5) that the amount of Pru-
Dental stock that each stockholder
will be permitted to dispose of to
the trust company can be determined
only after the total amount offered
is ascertained. AS only one half of
the total capital stock will be pur-
chased by the trust company the
pro rata amount to be purchased
from each stockholder remains to be
calculated, hence exclusive privileges
are offered to no one.
President Dryden is to be credited
with sincere desire to solve an inn
portant problem, by an ingenious,
original and effective method
Exhibition of Acetylene Gas.
No little interest has been centred in
the exhibition of acetylene gas lighting
which has been in progress at Smiths
drug store during the week, and many
will be glad to know that the exhibit
will be continued every evening Of next
week. A Colt Acetylene Generator and