The Morris County chronicle., 1902-11-28
COURT OF ERRORS WILL SAFEGUARD.

A correspondent, whose letter we
print in another column out of respect to
the writer, makes our article in last
weeks Chronicle upon the Fidelity and
Prudential Meig the occasion for an
attack upon the legality and the NOR
ality of the transaction itself. We have
no objections to urge against this posi-
tion, but it is entirely outside of the only
view of tho subject we then saw fit to
discuss. There was 10 irony in our illus
tration OF the working of the scheme
based upon the assumption Of the pay
ment for the stock of the Prudential in
cash. We took hundred ehares of
stock as the unit. Any one handy with
a slate and pencil can work ont the re-
suits according to the actual facts and
very likely may figure it as our cores
pondent does. 1t was we'll known that
the stock was not paid for in cash. But
this is not the question, nor do we think
sny one but assurance" missed the
point about the tramps and their
jackets paraphrased by him as the boys
and their jackknives. AS assurance"
profeeses to quote US In his reference %
this quip it is evident he has read our
article very hurriedly and possibly care
lsssly.
That the proposed merger Is 8 gigan-
Hc stock operation we stated and ''As.
surance" reiterates it. Our present con-
tention is that this iB q matter between
tho stockholders and managers of the
two corporations which it is proposed
practically to consolidate. We hope
the transaction is an honest one for the
sake of all concerned. We have our
doubts about it, but hardly care to dis
cuss this view of the subject while 1t Is
before the courts where it properly be-
longs.
Lay opinions differ; professional ones
also. Former Commissioner Lambert Of
the Insurance Department of Pennsyl-
vapia feels convinced that "the move
ment by which the Prudential secures
the stalwart aid Of the Fidelity is
strictly In accordance with law and
sDund worldly sense. Our correspon-
dent says. IF the insurance fund of the
Prudential is their private property no
fault can be- found with the exchange"
The proposal being not to t1uch the IN
gurance fund but only the surplus,
which is their private property, the
right to do with it as they please seems
to be conceded. Vice Chancellor Steven
son, on the other hand, in continuing
the injunction, substantially holds that
the transaction is void as ultra wires and
ainst public policy. But all this does
4t touch tn question of the interests
Of the policy holders, which to us is the
vital point.
The Prudential is proprietary com
pany. All the policy holders can do is
to drop their policies, taking the chance
Of obtaining new insurance elsewhere at
higher rates by reason of increased age,
or none at all if their health has become
impaired, unless they can show that the
aoivency of the company is threatened.
And so we say TO the policy holders, do
not give up your policies, We have not
yet heard 1t alleged that the solyency of
the company is threatened
Its urplus may be iuggled with but
that belongs to the stoc kholders. "As.
aurance" objects to the pertinency of our
slmile Of swapping jackets, or as he
prefers jackknives. How does he like
thimble-ris3 But however unfavorably
In its moral aspects the scheme may
strike us, Jerseyman can safely trust
their own conrt of Errors and Appeals
to safeguard the rights of stockholders
and policy holders alike, and in this
opinion our correspondent apparently
shares. When polieyholder rises up to
say that his security Is lmperilled, we
may have something further to say