The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-12-14

. end OF 1904 were SSSt1lltS35, ana Its Ia
bilit!cs. including reserve, S751S1,l0S. OF
the present "a plus of $lS.32+,S4s wit
ness said s. 000 coo was capital stock.
mainder is held To pay dividends 10
policy holders.
Still an Experiment.
Ar Gore said industrial Insurance in
this country is stin in the experimental
stage. and the company regarded II
ne -e-sdry TO hold large funds 10 meet
possible heavy demands.
MI Hughes brought out from the
witness figures which Ar. Hughes said
showed that the Prudential wrote in
the last five years twice as much IN
dustrial as ordinary insurance. hut
that the net Increase in each Of the
two departments was about equal.
Small Proportion Paid Back.
Mr.. Hughes also ELECTED tn fact
that iu the hast thirty years the Mutual
Benefit Insurance company of New JeT-
say has received from policy holders
Sl96. 100000 and paid them 100000 600;
that the Mutual Life Insurance COM
pany received $3.50 600 600 from policy
holders and paid out 10 them $500 00o,-
Uul. and that IN w. anne thirty years
premiums S2S7 ESQ coo and paid its pol
,cy holders of that department S92,-
900 600.
Air, Hughes asked why the proportion
paid back by the Prudential is - much
less than those OF the two others.
Mr.. Gore Id the rapid growth Of
the Prudential and the great number
of IlpSs explained il
Alr. Gore said that about 81 per cent
OF the Industrial insurance written by
his company IN 1904 iapsed in the same
year.
Dryden Recalled.
Senator John f. Dryden president
Of the Prudential, was recalled and
Mr. Hughes asked him about the ap-
parent waste of policy holders through
lapseSS
senator Dryden said that what his
policy holders saved by insurance they
would save i'm no other way. Senator
DRYDEN aeresd with Mr. hughes that
apparently about tWO-thirds of the in
sured get Uotaiug ba- * and the senator
added that this is rcerettabie ana uu-
fortunate. but. nevertheless, he as
serted that the system is the greatest
economic force i'm the country today.
Agents Held Responsible.
after recess. and Mr.. Hughes read
letter from an agent who complained
against the regulation of the Prudential
company which required an agent to
provide policy-holder without a COM
m Ssion when an old one lapseS The
senator said the company had been un-
able Ia fnd any Other plan that would
protect both pOliCy-hOlder and the
company and still be remuneTative 10
the agent. The senator said he could
not maintain the energy of the agents
by any otEer plan, and that otherwise
IN a short time the company would
have no business
IT agents were not held responsible
for lapses.' the senator said, the ad-
ditiOnal cost 10 the company would be
So great that il could not do business"
The senator said that Peter Egenolf.
a New York agent of the Prudential,
gets S54t a week. Out of that he has
to pay. clerk hire and some other eX-
penseS Eight or ten of the agents Of
the company. the senator stated, get
more than $4,000 year
Bond Underwriting.
Mr.. Hughes went over with the SEN
at0r who sfill remained on the stand
the sale OF 5000 con bonds of The Newark
Consolidated Gas company, in which
Mr.. hughes Drought OUT tNdi the EldeI-
ity Trust company was a member OF
the syndicate which underworld the
bonds ana got a quantity of stock of
that company as a bonus. Subsequent
ly. the senator said. the Prudential
company bough. both bonds and stock
from the Fidelity company at the mar
ket price Senator Dryden declared
that the Prudential does not 20 into
underWr ting syndicatcs, and that il
will no. deposit money with the Fidel-
ity Trust company for the purpose Of
enabling 10 10 ENGAGE iu syndicate UNI
derwiiting. The Fidelity Trust COM
Dany did not uuderwrire the stock of
the Public Service corporation.
Holds Double Position.
IN reply 10 questions. Senator Dry
den sad he is "a member Of the commit
tee OF the Fidelity Trust company which
sells securities TO the Prudential COM
papy, and also of the Prudentiars COM
mittee which buys them. Some o.he~
men, be said. are members of both
committees. Senator Dryden said that
when the Fidelity Trust company
bought stocks or bonds il did not know
whether the Prudential could take
them or not. The Prudential holds it
self 80 INDEPENDENT that IL is unbia sed
The senator added.
Continued on Page ?.