New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-11-15
ATTACKS THE LEGISLATURE.
SAYS IT Is CONTROLLED BY
THE COMPANIES.

In his closing remarks Richard V. Iindabury
took occasion yesterday in the hearing OF the
Prudential Fidelity merger suit I'm Jersey City to
oritcise the New-Jersey legislature. and say that
1t was controlled by the companies in question.
Argument In the suit heard in Chancery
Chambers by Vice-Chancellor Stevenson. The suit
brought for the purpose Of preventing the
( Prudential Insurance Company of America and
the Fidelity Trust Company OF Newark from COM
bining their capital stock and becoming, one cor
poratiOn with twofold capacity.
United States Senator John F. Dryden. of New
Jersey is president OF the insurance company. and
Uzal H. McCarter is president Of the trust COM
pany. EX-United States Attorney General John W.
Griggs IS representing the insurance company. At
torney General Thomas n. McCarter, of New-Jer-
sey, the Fidelity Trust Company, and associated
with them Charles n Corbin and Robert Fl.
McCarter. The two companies are co-defendants.
The complainants who seek TO prevent the con-
solidation John Ingworth and John Row
botham, of Newark. stockholders OF the insurance
company. They represented by Richard V
Lndabury and John r. Hardin.
The compliments contend that the proposed mer-
ger is against the laws of the New-Jersey:
that il is against public policy. that it is ex-
erclsing power by the Prudential not conferred by
IT'S charter The combination would give the two
companies capital of S3.0ao 900 and a surplus of
$l3o0oOGo making it the largest trust company in
the country.
Ex-Attorney General Griggs argued that the
Prudential had a right place its business in
trust. and in doing it was safeguarding perma-
nenty the interests of the stockholders of both
companies and the 100000 policyhOlders OF the
insurance company. The Equitable Life Assurance
Society, under the prospective merger, agrees to
take large share of the capital of the cOmbina-
ton and will figure prominently in its interests.
Under the proposed merger the Prudential would
1trOl the Fidelity. Since the plan has been made
known the price of the merged stock has advanced
from $500 to 81 a share.
Mr. Hardin of counsel for the complainants.
characterized the scheme concocted in the
dark ard one that was commended by Wall Street
interests Thomas N McCarter argued that each
company would continue its respective business
and that the proposed merger legal in every
respect
John w. Grggs spoke for nearly an hour, pro-
testing against the Issuance of restraining order
and declaring that the Prudential company was
not taking any undue advantage of It's policy
holders. 1t already held stock in the trust com
pany.
Richard V. Lndabury made the closing argu-
ment against the proposed merger. He said that
corporations I'm NeW-JerSey did need judicial
General Corporations act. MIR. L.indabury asserted
that the insurance laws forbade insurance com
pany doing trust business. and that the trust
laws forbade trust company from transacting an
insurance business In closing his argument Mr.
Linda bury turned to Senator DRYDEN of the in
surance company; President McCarter Of the trust
company; eX-United States Attorney General
Griggs, Attorney General McCarter and Mr.. COrbin
and said:
IF they want to be benevolent and while thew
in a benevolent mood, why don't you repeal
the law which took away from the policy holders
elect directors and restore m
widows and orphans the benefit which you have
taken away? They (the companies) still control
the legislature: | understand, and can do this If
they want to-.
This closed the argument which lasted all dav
afndavits submitted and announce his decision next
week