The Barre daily times. (Barre, Vt.) 1897-1959, 1905-12-14
DRYDEN DE-
FENDS SYSTEM
He Points Out the Benefits
of Insurance.
CLAIMS OF UNDERWRITERS
Two-Thirds Of the Policies Are Lost by
Lapses-c Charles A. Peabody Is
Elected President Of the
EF Mutual.
CLAIMS OF UNDERTAKES

| New York, Dec. 14.--John X. Gore,
actuary Of the Prudential Insurance
company Of Ansesioa. was Grst called to
the witness stand in The life insurance
investigation yesterday. He submitted
a statement Of dividends paid on indus
trial insurance by his company. 1t
showed the payment in 1904 of 1913 900
of additional benefits" payable IN case
OF death of the insured five years after
the issue Of the policy. The total m
dustrial death claims paid in 1904 were
IS 1897 900 and the cash dividends credit
ed to policyholders IN the industrial de-
partment in 1904 amounted TO 1851 ,0c0.
A statement Mr.. Hughes read showed
that in the last five years on the record
of the company's industrial department
was received ia premiums Sal0,4as. 1913;
paid out TO pelicyholders, S39,240;94S;
$34 ,59s,000 Of this was for death claims,
So, 046, 139 in cash surrender values and
81, 595,5gl in dividends.
The amount paid into the Prudential
Company in premiums since It's organiza-
ton, witness said, was about S2s7 Co.,,
600. In the same tima its earnings apart
from premiums were sic 500 geo. The
witness said difference in the valua-
tion of industrial policies compelled his
company to hold greater reserve on
them in Massachusetts, as a result Of
which the company has TO have spec
ial reserve of $2,7ii9o0
Mn. Gore said industrial insurance in
this country is still in the experimental
stage, aud the company regarded it nee
esary to hold large funds to meet pos
sible heavy demands. Mr.. Hughes brought
out that che witness figures showed that
the Prudential wrote in the last five
years twice as much Industrial as ordin-
airy insurance, but that the net increase
in each OF the two departments was
Iabout equal Mr.. Hughes asked why the
proportion paid back BY tie Prudential
IL 10 much less than those Of other COM
panies cited, MIR. Gore said the rapid
growth of the Prudential and the great
number of lapsss explained il. Witness
estimated that polieyholders in The in-
dustrial department of the Prudential
paid in to the company s2,300,o00 in
1904, and allowed their policies to lapse
in the same year. Mr.. Gore said that
about thirty seven per cent of the indus
trial insurance writes BY this company
in 1904 lapssd in the same year
United States Senator John F. Dryden,
president Of the Prudential, was then re-
called, and MIR. Hughes asked him about
Ithe APPARENT wazte Of policy holders
through lapse.
Sepator Dryden said: II think there
can be but one opinion that anything
that uplifts people, encourages thrift
and saves them from q pauper's graveis a
great beneficial, economic and moral
force
BY thrift Won mean saving money!"
said Mr. Hughes, 4bnt there is no, adj
vantage in saving money and putting
lit whore they cannot get it.
Senator Dryden said that what his
policy holders saved By insurance they
would save in no other way. Senator
Dryden agreed with Mr.. Hughes that
apparently about two-t hirds of the IN
supd get nothing back and the senator
added that this was rsgrettable, but
nevertheless he asserted the system is
the greatest economic force in the coun-
tly today.
Mr.. Hughes said stories haev reached
him that sometimes the funeral does not
80 on until the undertaken heaYs from
the company. The senator said that UNI
dertakers naturally find out If the dead