Perth Amboy evening news., 1906-03-08
Colby Men Put Legislature on
Record in the Matter at Yes
terday's Session.
CORPORATIONS FIGHT.
Declare There Is No Need for
Investigation and States Fin
anCiaI Institutions Suffer.

on Senator Colby's joint resolution
providing for an investigation of the
insurance companies of the state, the
charge having been made that the
Prudential is linked with the Fidelity
/ Trust Company, of New Jersey, in a
financial chain that needs probing by
the state. All efforts on the part of
the Colby men in the legislature to
get authority for this inquiry have so
far been futile because the powers of
the big corporations have been ar
rayed against it, just as they were in
New York prior to the upheaval
there. Senator Colby has not lost
hope, however, as was evidenced at
the hearing yesterday, for he expects
that if the investigation is permitted
he will be able to show some interest
ing and rather startling facts.
At the hearing the Prudential was
represented by r. n. Lindabury, its
general counsel, and the Fidelity by
former Governor John W. Griggs. 1t
opened about o'clock, when George
l.. Record, at the suggestion of Sena-
tor Colby, opened the case for the
friends of the resolution. Record
was followed by Sheriff Sommers, of
Essex county. Sommers is a lawyer
and was formerly professor of law
in Columbia college.
Record Urges Probe.
Mr. Record said that he had no
idea. that the revelations following
the investigation of the insurance
companies of New York would influ-
ence the legislative committee in New
Jersey, but he agreed that it was rea-
sonable to believe that if the insur-
ance companies in New York had
done things that they ought not to
insurance companies in New Jersey
might be doing the same kind of bus-
ness.
He pointed out the fact that Mr..
Lindabury had said at the last hear
ing that the investigation of the New
Jersey life insurance companies by
the New York Investigating commit
tee had shown that the New Jersey
companies were honestly and wisely
managed. This assertion will be at
tackled" said Mr.. Record To the
committee he said You represent
the public, and the public has the
right to know whether or not the life
insurance companies doing business
in New Jersey are as dishonesty man.
aged as it has been proven that those
in New York were. This information
cannot be gotten unless legislative
committees will report bills and reso-
lutions referred to them, so that the
sentiment of the public as expressed
through the votes of its representa-
tives may be known
Mr.. Record argued that if the New
Jersey life insurance companies were
conducting an honest and legitimate
business they could not reasonably
object to an investigation of their
methods.
Points to Dryden's Admission.
Sheriff Sommers pointed out the
fact that the management of the Pru
Dental Life Insurance Company, ac
cording to the testimony of John F.
Dryden, its president, at the New
York inquiry, had cost annually near
ly a quarter of million dollars, and
that Dryden had confessed that the
employees of the company had been al
lowed commissions on their own
lives. He called attention to the fact
that the finance committee of the
Prudential had authorized loans
amounting to $2,000,000 to the Pub
lie Service Corporation, and that
these members of the Board of Direc-
tors of the Public Service Corpora
ton. The loan was subsequently
paid.
Sheriff Sommers showed that the
interests of the Prudential the Pub
lie Service Corporation, the Fidelity
Trust Company, all of New Jersey,
and the Equitable Trust Company
and the Equitable Life Assurance So
ciety of New York. and the United
Gas improvement Company, of Phil
adelphia, were closely blended, and
that United States Senator Dryden
was a director or officer of each of
these organizations. He pointed out
that six members of the board of dl-
rectors of the Prudential were mem
bers of the board of directors of the
Union National Bank, of Newark
which was depositary for the funds
of the Prudential, and whose capital
was but few dollars more than the
amount of deposits carried by the
Prudential.
1t was shown that for ten years the
stockholders i'll the Prudential had
been paid ten per cent. dividends an
nually on their stock. Mr.. Sommers
took up the interests of the policy
holders. He referred to the question
asked Mr.. Dryden by Mr.. Hughes. the
/ New York inquisitor, as to waat tae
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