The Providence news. (Providence [R.I.]) 1891-1906, 1905-12-13
PRUDENTIAL
AFFAIRS
PROBED

New York Dec. 13-John X. Gore, ac-
tuary OF the Prudential Insurance com
pany OF America was first called TO the
witness stand In the life insurance In
vestigation today. He submitted a state
ment OF dividends paid on Industrial In
surance by his company. II showed the
payment In 1904 OF $4,000 OF additional
benefits" payable in case Of death OF the
insured five years after the issue OF the
policy.
Tho total Industrial death claims paid In
1894 were s. G37, 600 and the cash dividends
credited TO policy holders I'm the industrial
department I'm 1904 amounted 20 $4,000.
statement Mr. Hughes read showed
that I'm the last five years the record of
the cOmpany's Industrial department was
received IN premiums SllO, ,449 373: paid out
10 policyholders $39. .2iO 94S $34 $4,000 Of
this was for death claims, S2,0i67S IN
cash surrender values and s.. .595 571 i'm div
idends
The amount paid into the Prudential
company I'm premiums since It's organiza-
ton. witness said, was about %-o7 900 900.
In the same time its earnings apart from
premiums We're $40 100000.
The witness said n difference In the
valuation OF Industrial policies compelled
his company TO hold greater reserve on
them in Massachusetts. as a result OF
which the company has to have a special
reserve Of S2,712 600.
Mr. Gore said Industrial insurance IN
this country is still In the experimental
stage and that the company regarded It
necessary to hold large funds 10 meet
possible heavy demands.
Mr.. Hughes brought out that the wit
ness figures which Mr.. Hughes said
Sh h. ffaI In ha
last five years twice IA much industrial
as ordinary Insurance but that the net
Increase In each OF the two departments
was about equal
Mr.. Hughes asked why the proportions
paid back by the Prudential IL 50 much
less than those OF other companies cited.
Mr.. Gore said the rapid growth OF the
Prudential and the great number OF
lapses explained It. Witness estimated
that policyholders I'm the Industrial de-
partment Of the Prudential paid in 10 the
company $4,000. 900 in 1904 and allowed
their policies to lapse in the same year.
Mr.. Gore said that about 81 per cent. OF
the industrials written by his company
I'm 1904 lapsed I'm the same year.
Senator Dryden said:
"I think there can be but one opinion
that anything that uplifts people en-
courages thrift and saves them from
lhupti grave II IL sftdl bSheilAt 'Nbhoh9
and moral force"
by thrift you mean saving money!"
said Mr.. Hughes, but there is no ad-
vantage I'm saving money and putting IL
where they cannot get It,"
Senator Dryden said what his policy
holders saved by insurance they would
have i'm no other way.
He agreed with Mr.. Hughes that ap-
parently acout two-thirds OF the insured
get nothing back. and the senator added
that this was regrettable, but, never
theless, he asserted the system is the
greatest economic force in the country
today.
Mr.. Hughes said stories have reached
him that sometimes the funeral does not
go on until the undertaken hears from
the company. The senator said that
undertakers naturally find out II the dead
is insured and that upon learning he Is,
makes no further delay.
His company, witness said. pays under
takers only i'm carefully investigated in
stances.
Senator Dryden said his company paid
10 undertakers i'm 1904 1T death claims,
amounting TO Sl5,5H.