New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-14
PRUDENTIAL PROBE OFF.
Senate adopts Adrerse Report on
Insurance Measure.

Trenton. March 13-The Senate this afternoon
adopted. by vote Of II TO 5, it's Judiciary Com
nittee's adverse report on the Colby resolution
aimed 10 bring about investigation Of the
Prudential Life Insurance Company. Those who
voted in the negative were Senators Colby. Shin,
Horner. Price and Martens.
Mr. Horner explained his voting negatively by
saving that he disagreed with the committee in
its opinion that there is no demand for an in
vestigation. At q convention in his county, Bur-
lirgton. he said resolutions had been passed
calling for an investigation of insurance COM
panies. and that action widely printed in
the papers.
After the Senate adopted the committees re-
port, Mr. Colby moved to reconsider the vote.
His motion was tabled on the motion of Senator
Mckee
The following is the committees report in
part
There seems to be no demand for an investiga-
tion of the insurance companies the allied
financial institutions Of this state Although
there are hundreds of thousands of policyholders
and depositors not a single stakeholder or
policyholder has asked for investigation.
The committee has been furnished with COM
rlete CODY Of the testimony and exhibits
iating TO the Prudential Insurance Company,
taken by the Armstrong investigating commit
tee of New-York, and careful examination Of
the same convinces us that the Inquiry was
thorough and exhaustive upon all the points
respecting which examination is now pro
posed.
All the transactions between the Prudential
the Fidelity Trust Company and the Public Ser
vice Corpora ton, or between any two of them
since the attempted merger Of 1903, have been laid
before and we find nothing in them inconsist-
ent with the soundest business methods. They
seem 10 have been mutually advantageous 10
the company; not a single loan appears TO nave
been made by either company TO the other with
ont ample collateral or at less than per cent
interest and all these were paid up more than
a year ago -, -
n has been urged that the reputation OF GER
tain NeW-York companies prior 10 the inVesuga-
tYon of the Armstrong committee was as falr
as that of the Prudential now IL. and that we
80, reesona bly, expect TO find upon Investigation
thai the same abuses exist in the PrudentlaI
.hicb we're discovered in the NewYork COM
panies. ~ 80, -, NJ, a.
-. t,,trtI that because the mana gement OF three
NSar--Yorlx companies found to be derelict
q sbouId therefore be assumed that prima facla
All Insurance companies everywhere are nlls,
managed Besides the Prudential was examined
a. New-York after the examination or the new
Work companies and its examination was al
-ected To the very point upon whlch Irregular
49, y,ere found in the New-Hork companies
"a not a single one of these irregularities was
Sis.tasaS IA the case of the PRUDENTIAL
srne Insurance laws Of this state proVlde TOT
- .,ost annie supervision and examination OF
s-e,,rsnca companies. banks ana trust COM
No MES bv the Insurance Department, anu we Sc
W reason 10 doubt either the integrity OF thS
e7.i.T,.- or The Department, nor are we ADVISED
nv The department that any reason eaIs.S 10 It's
knovvIedge Tor a legislative investigation.