New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-27
JOLT FOR WATKINS.
COLBY ASKS MORE LIGHT.
Hits Commissioner for Keeping
Back Prudential Statements.
rsy Telegraph . The rTiban..I

by Telegraph . The TEib1nel
Trenton, Feb. Ex-senator Colby tonight IN
support OF his resolution fer a COMMITTEES to IN
~estigate the Prudential Insurance Company
made long speech He said the people Of New
Jersey shared the general distrust in insurance
companies This distrust could only be set at
rest by thorough and searching legislative in
vestigation-
Statements as 10 the results Of other inVesti-
cations would not do he said. and insisted that
undisputed facts should be brought TO light
To accomplish this result he asked the Senators
10 review with him the history OF insurance
transactions IN this State during the last re"
years
F4e told about the protest OF the insurance
commissioners Of various States against the
proposed merger in 1902 Of the PRUDENTIAL IN
surance Company and the Fidelity Trust Com
psny 4 dozen States protested. he said, but the
New-Jersey Commissioner was silent
The courts prevented the merger. me pFesi-
dent Of the company, M Colby said. issued a
statement 70 the field staT that tie courts had
interfere6, although the fairness. justice and
wisdom Of the proposition seemed obvious
In 1903 the Massachusetts Commissioner said
:. becomes the duty Of some one 10 throw back
the curtain ana give al least passing view
Of what Is possible by the control Of a lie IN
surance company by a trust company
Mr.. Colby spoke Of the high price at which
Fidelity stock had sold. and remarked that il
was the potentially Of the relation OF the trust
company with the insurance company that
caused the price. Il was the insurance company
ana the use OF its funds that caused the sue
cess OF the trust company, he said
This had practically been admitted by the
trust conpany's president. he declared Inc
danger OF depositing so much OF the policyhoId-
ers' money in a single trust company was re-
1erred 10. and illustrations Of what might nap
zen were given He said that when the Gov
ernor stated in his message that the question
~ the security Of the funds Of life insurance
companies was one that the legislature should
take under consideration. HIS utterances were
peculiarly timed He charged that the Pru-
Dental for all practical purposes. was controlled
by the Fidelity Trust Company.
Mr.. Colby read e letter that the Commissioner
~ Insurance in Massachusetts wrote TO the Com
missioner of New-Jersey on January q. lSo4
IN which he asked what the value Of Fidelity
stock was and what sort Of collaJerals were put
m seasns1 loans No reply was sent by the
Sep--Jersey COMMISSIONS. on February } the
Massachusetts Commissioner telegra phed Com
missioner Watkins saying be had received no
reply 10 his letter. ana asking whether Il was
received. on February Ny. Cutting, the Mas
sachusetts Commissioner. received letter from
ar. Watkins IN which ne gave the statement Of
the company as rendered on December 81, lSDj
but declined 70 20 INTO la.St-Llol-s. Is II NOuIu
establish prececef OF W1lcn ne clsapptoNed
he also said he thought AIT. cutting was IN
70 his statement OF the price OF Fidelity
stock
on February y Nj Cutting renewed his re-
quest 10 Nj Watkins for a list OF the Fidelity
collateral loans, as ne could see no proper bust
ness secrets were disclosed IN such q statement
There WIS no reply 70 this on Mr.. Watkins'S
part, 60 on February "A, 1904, MI Cutting asked
by mail what Mr.. Watkinss final decision in
the matter was.
No reply. said Senator Colby had ever been
received 70 this letter by the Massachusetts,
COMMISSIONS. AS 2 consequence Mr.. Cutting
took steps 10 have the authority OF the Pruden-
tial to do business in Massachusetts revoked. 10
take effect on May 10. This resulted in a cove
nant by the Prudential signed by its president
and secretary, agreeing that il Massachusetts
would not revoke the company's authority the
Prudential would not deposit, so long as il did
bus ness IN Massachusetts, IN any trust com
pany bank other financial institution sum
10 exceed - per cent OF its net surplus de-
termined by said Insurance Commissioner. This
covenant was signed about May /, 1904.
Mr. Colby then told how the State OF Wiscon-
sin had tried TO get information 10 the rela-
lions between the insurance company and the
trust company, but could not. The story Of the
transaction has already been made public
In closing, Mr. Colby charged that the trust
company holds for itself and in trust enough
stock TO control the Prudential. If there was
anything lacking, Mr.. Dryden held enough Pru-
Dental stock 10 make "A majority with the Fide-
Sly holdings. The Public Service, Fidelity Trust
and Prudential could use the funds Of the pol
icyholders as partners for their financial ven
lures
Does the public" said Senator Colby. now
know what their relations are, and whether the
poicyhoders, interests are secure, when even
less than half OF the surplus Of the insurance
company is dependent upon the Fidelity and in
turn dependent upon the Public Service Corpo-
ration? An investigation would show"