Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1905-03-15
PRUDENTIAL BOWS
TO COMMISSIONER
INSURANCE COMPANY COMES TO
Mr.. HOSTS TERMS.
LICENSE is DULY ISSUED
Controversy Between Wisconsin Off
Ger and the Company Settled Off,
cialIy But Litigation Remains in
the Courts--Summoned East in Con,
nection With Libel Suits.
Madison March 10

The Prudential Insurance company
has come TO the terms of Commissioner
Host.
A representative of the company
called at the department of insurance
yesterday and left with the commits
sioner report and all papers required
under the laws of this state to license
life insurance company. The state
ment of the Prudential filed shows
large reduction in the amount of funds
carried as deposits in banks and trust
companies. The representative of the
company also furnished a statement
| showing the financial condition of the
Fidelity Trdst company, over which
a controversy arose year ago.
When the license of the Prudentis.
expired, Commissioner Host refused to
renew it for the reason that the com
pany mad s9,20O,0 900 invested in the Fl,
deity Trust company, an amount equal
/ to more than one-seyenth of the com.
pany's assets at that timc, and about
$2,000,000 more than its surplus. Al
that time the commissioner requested OF
the company a statement showing the
condition Of the Fidelity Trust com
/ pany to enable him to properly pass
upon the statement of the former com
pany, as the laws of Wisconsin make
it the imperative duty of the commits
sioner that he shall be satisfied THAI
the funds Of a company are properly
and safely secured before he issues a
license. At this same time the com.
missioner of Massachusetts had con
tr0versy with the company on the same
proposition, which the company settled
by adopting resolutions agreeing that
at no time would the funds of the com.
pany deposited in banks and trust com.
panies amount to more than a certain
percentage of its surplus.
After carefully scrutinizing the state
ment of the company and the state
ment Of the Fidelity Trust company,
and being satisfied that the deposits of
the Prudential in the Fidelity Trust
{
sioner Host sent the following letter to
the officers Of the company:
"Gentlemen.-The Prudential Insur.
ance company has filed its annual
statement with the insurance depart.
/ ment of Wisconsin. which shows com.
pliance with the laws Of this state and
that its deposits with banks and trust
companies have been reduced The
representative Of the company has also
/ submitted a financial statement of the
the condition of the Fidelity Trust
company of Newark, New Jersey,
against which, no objection can be
raised by this department.
Whatever personal opinion the com.
missioner of insurance may hold as to
the ownership ana control of capital
stock of life insurance company, and
whatever personal differences and
controversies arr pending between the
offers of the Prudential and the COM
missioner, officially. there now exists
no grounds why a license shall not is,
sue To the Prudential Insurance com
pany Of Newark, Kew Jersey. The H.
cense, therefore, has been issued"
Suits Still Pending.
When asked what was to be done
with the suits of the company pending
in the United States circuit court and
the superior court of Milwaukee coun,
ty, Commissioner Host said: Il do
not knw what viii be the outcome OF
these suits; my answer il both cases
was flied several months ago. and am
prepared TO defend them as soon as the
attorneys for the company are ready
Commissioner Host received wori
from his attorney in New York, Gilbert
E. Roe, to com" to New York at once
as his libel suits against the New YORK
sun Journal OF commerce. and Insur-
ance-an insurance JouInal-are ready
to notice for trial. In each one of
these suits the commissioner asks $50.
600 damages
TIE main question involved in the
Prudential case was a charge ON the
part of the company of ''extortion" IN
excessive charges in violation Of the
laws of Wisconsin. Since this suit
was commenced Commissioner Host
has made two examinations of com.
panies upon the same basis as the Pru
Dental examination was conducted
These were the Northwestern Mutual
Life Of Milwaukee. which examination
cost $4,000 and the Penn Mutual Life
OF Philadelphia. which examination Is |
still in progress. The expenses and
compensation charged in these two ex-
amlnations We're the same as in the
Prudential examination, and there has
been no objection on the pat Of these
TWO companies. As a matter of fact. !
the Penn Mutual Life by resolution. /
extended an invitation TO Commission /
er Host to participate in Joint own /
nation Of said company with the insur
ance departments Of PENNSYLVANIA and
Massachusetts.
The report Of examination of the
Northwestern Mutual was made public
a few days ago, and it was found by .
Commissioner Host that the company
was in first class condition. Had theE
Prudential been found in first class
condition at the time it was examined /
there would not have been any contro
versy. and no suits would have result.
ed, it is believed.
ST. Paul Official Dies.
Dies MOines. Iowa. March l0.-F u