The Jersey City news., 1906-03-14
Colby's Resolution Calling
fol Investigation Of the
Big Newark Company
Succumbs to a Vote Of
IL to 5
NO DEMAND SAYS COMMITTEE
POLICY HOLDERS QUITE Salts
FLED THEIR MONEY IS SAFE
DECLARES THE LEGISLATIVE
MAJoRITY-ANNUAL REPORTS
CAUSE CONFIDENCE
Especial to .The Jersey city News. .

Especial to sThe Jersey city Newa.''o
TRENTON, Mar. IA, 1906. BY a
vote of II to 5 the Senate yesterday sus
tainef the Judiciary Committee in re-
porting adversely Senator Colby's resolu-
ton to investigate the Prudential Insur-
aDce Company's affaiTs, on the ground
that there was no strong public demand
for such a legislative Investigation.
The following is the committees re
port. in part
There seems to be no demand for an
investigation of the insurance companies
or the allied financial institutions of this
State. Although there are hundreds Of
thousands of policyholders and depositors
not single stockholder or policyholder
has asked for an investigation.
The committee has been furnished
with complete copy of the testimony
and exhibits relating to the Prudential
Insurance Company, taken by the Arm
strong investigating committee of New
York, and a careful examination of the
same convinces us that the inquiry was
thorough and exhaustive upon all the
points respecting which an examination
is now proposed.
The annual reports made by the Pru-
dental to the Commission of Banking
and Insurance of This State set forth in
detail all the company's investments,
with the cost and market value of each,
together with all the collateral loans and
the collateral held therefor.
All the transactions between the Pru-
Dental, the Fidelity Trust Company and
the Public Service Corporation, or be-
tween any two of them since the attempt
ed merger of 1903. have been laid before
US and we find nothing in them incon-
sistent with the soundest business meth
DDS. They seem to have been mutually
adyanta geous to the company; not a sin
gle loan appears to have been made by
either company to the other without ani-
pie collateral, or at less than per cent.
interest. and all these were paid up more
than year ago.
It has been urged that the reputation
of certain New York companies prior to-
the investigation of the Armstrong conn
mittee was as fair as that of the Pru-
dential now is. and that we may reason
ably expect to find upon Investigation
that the same, abuses exist in the Pru-
Dental which were discovered IN the New
York companies.
We are not able to accept this view.
We do not think that because the man
agement of three New York companies
was found to be deredict it should there
fore be assumed that prima faeia all in
surance companses everywhere are mis-
managed Besides, the Prudential was
examined in New York, after the exams
ination Of the New York companies. and
its examination was directed to the very
point upon which irregularities We're
found in the New York companies, and
not a single one of these irregularities
was disclosed in the case of the Pruden-
tial.
After the presentation of the report by
Chairman Hille1y a debate ensued be-
tween Mr.. Hillery and Mr. Colby.
"Why is it no one can get a statement
of collateral Of the Fidelity Trust?' was
one Of the questions Mr.. Colby first ask
ed.
'Ex-G Governor Griggs told you why at
the hearing" replied Mr.. Hillery. "He
says that the collateral held for loans
by the people who borrowed from the
bank is matter with which the State
Commissioners of Banking and Insurance
should deal, and l think, he is right"
Mr.. Colby declared that at one time
the Prudential had more than $1.000,00O
above it's surplus invested with the Fi-
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