The Birmingham age-herald., 1905-12-14
TWO INCIDENTS AFFECT-
 ING THE INVESTIGATION
(Continued from First Psue)

kOOntlnuCO ITOfn FlTSt FdgCt
 --~-~~-~~@--~-~---~-----~ 90 per cent of the remainder is held to pay dividends to policyholders.
 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 to meet possible heavy demands.
 Mr. Hughes brought out from the wit ness figures which MT. Hughes said his statement showed that the Prudential wrote in the last five years twice as much industrial as ordinary insurance, but that the net increase in each of the two departments was about equal
 MT. Hughes also elicited the facts that in the last thirty years the Mutual Ben eft Insurance company of New Jersey has received from policyholders $l96. 00,00O. and paid them $106, ,000, GOO; that the Mutual Life Insurance company received sS60 00O,- 900 from policyholders, and paid out to them s560 000,O and that in the same thirty years the Prudential received in industrial premiums s2S7 100000 and paid out it's policyholders of that department S92, GOO GOO MT. Hughes asked why the proportion paid back by the Prudential Is so much less than those of the two others MT. Gore said the rapid growth of the Prudential and the great number of lapses explained it.
 There Is Great Waste.
 Considering the lapses, the witness as scented to MT Hughes statement that there Is a great waste by the policyhold- CTS who allow their policies to lapse. The number of polcyholders in the company at the end of 1904, Mir Gore said, was above 4,5OO0O0. Witness estimated that policyholders in the industrial department of the Prudential paid into the company &, 300, 900 in 1904 and allowed their policies to lapse in the same year.
 MT. Gore said that about 37 per cent of the industrial insurance written by his company In 1904 lapsed in the same year.
 Senator J. F. Dryden, president of the Prudential was recalled and MT. Hughes asked him about the apparent waste of polleyholders through lapses.
 What Is your opinion of the public policy of this?" asked Mir Hughes
 Senator Dryden said: This industrial insurance Is constantly uplifting the in- dustrial classes and teaching them the value of insurance. The child early learns the value of insurance and this teaches him self-respect as no other single force. l think there can be but one opinion that anything that uplifts them, encourages thrift and saves them from a pauper S grave is a great beneficial, economic and moral force'
 By thrift you mean saving money" said MT. Hughes, but there is no advantage in saving money and putting it where they cannot get It..
 Senator Dryden said that what his policyholders saved by insurance they would save in no other way Senator Dry den agreed with MT. Hughes that appar- ently about two-thirds of the insured get nothing back and the Senator added this is regretable and unfortunate, but never the less he Asserted that the system Is the greatest economic force In the coun. try today.
 MT. Hughes said stories have reached him that sometimes the funeral does no go on until the undertaken hears iron the company. The Senator said that un dertakers naturally find out if the dead i: insured and upon learning he Is mak, no further delay. His company, witness said pays undertakers on carefully in vestigated instances.
 Senator Dryden said his company paid tC undertakers in 1904 IF death claim! amounting to Sl5,5S7.
 Mir Hughes asked many questions abou the conduct of Its agency department Senator Dryden said agents have to re turn their commissions to the compan, when a policy lapses inside of five yeari from the date of issue. This Is done tt prevent lapses, the Senator said
 Agents Held Responsible. Senator Dryden again took the stand after recess and MT. Hughes read a letter from an agent who complained against the regulation of the Prudential company which required an agent tc provide another poicyholder without | commission when an old one lapses. The Senator said the company has been | unable to find any other plan than this that would protect both policyholders and company, and still be remunerative to the agent. The senator said he could maintain the energy of the agents by no other plan and that otherwise in a short time the company would have nc business
 "If agents were not held responsible for lapses, the Senator said, the ad- dtional cost of the company would be so great that they could not do business. ' The Senator said eight or ten of the agents of the company get more than sl0,000 a year.
 Assemblyman Cox again brought UT the point of lapses in industrial insurance and Senator Dryden pointed out the economical value of the system in touch ing thrift and giving insurance. But they get so little of it,' replied Mr. Cox.
 MT Hughes went over with the Sen ator the sale of S500.0O0 bonds of the Newark Consolidated Gas company, in which Mir Hughes brought out that the Fidelity Trust company was a member of the syndicate which underwrote the bonds and got quantity of stock of that company as bonus Subsequently said the Prudential company bought both bonds and stocks from the Fidelity com pany at the market price. Senator Dry den declared that tine Prudential does not go into underwriting syndicates, and that 1t will not deposit money at the
 Fidelity Trust company for the purpose | of enabling it to engage fin syndicate un- l derwrlting. The Fidelity Trust company l did not underwrite the stock of the Pub lie service corporation. In reply to ques-
 tions Senator Dryden said he was q member of the committee of the Fidelity Trust company which sells securities to , the Prudential company and also of the prudentials committee which buys them. Some other men he said, are members of both committees.
 Senator Dryden said that when the Fidelity Trust company bought stocks or bonds it did not know whether the Pru- dential could take them or not The Pru- dential holds itself so independent that it is unbiased. the Senator added. Mir. Hughes asked the Senator his views on the question of federal supervision of n- surance corporation.