New-York tribune., 1906-07-20
MIR. DRYDEN ON STAND.
DENIES STOCK DEALS.
Says PolicyhoIders' Money Vas Not
Contributed to Campaign.


or the Prudential Insurance Company, was on the
stand all day yesterday in the insurance investi-
cation by the Senate committee of the New Jersey
Legislature The session was held in the Chancery
Chamber. in Newark While he looked rather
.atigued at the close. Senator Dryden made an ex-
celIent witness. It was early in the day that he
gave history OF his company and handed in a
Tong typewriter statement OF his company's
worK and his individual views the various
phases OF life insurance. He told how ne got
special charter from the New York Legislature
early IN the '7Os which Governor Hoffman vetoed
on the ground that the general law was sufficient
20 cover his needs.
Then Mr. Dryden came to New Jersey. and
through John Whitehead. introduced TO Sam
nel Mann, then a member Of the legislature, who
became interested in the industrial insurance idea.
and in 1873 the first bill on the subject passed.
The career Of the promoters OF the company from
then TO this time is already familiar. The Senator
then his elaborate statement Of the history OF
his enterprise. which given in detail at the
time Of his appearance before the Armstrong COM
mitiee in New York. He added that the sharehold-
srs received 10 per cent dividend a year and that
be was opposed 10 increasing It, He thought the
efforts now should be to benefit the polcyholders.
Senator" said Mr. COrbin at this point, con
sidering the vast geometrical ratio at which the
surplus and assets Of the company growing
Cfgom s40,OO0.OOo slO7.OoOOOO In years., and
that you consider your company practically pub
so institution, and your moral and ethical views on
the subject don't you think your stockholders
provision for the and future benefit OF the
policyholders?"
Senator Dryden said ethics and morality did not
ordinarily enter into business matters, and that
where set Of men had built up enterprise like
the Prudential they were entitled 20 the returns
There the subject was dropped by Mr. Corbin
but away along in the afternoon. when it was re-
vealed that the Prudential had already voluntarily
paid its indentured shareholders over sScoOOco in
dividends, Mr. Corbn resumed the subject, and in
CURED in an earnest way whether some legal
ooe2oISs1s o9es might might not be made by which its
dividends. The Senator replied:
WILL CONSIDER THE PLAN
Il shan certainly take the subject under serious
consideration"
Il turned out that the question put 20 the Senator
o6 no &c gsTs t sy for @ on sort of nsgSa
2 ssr1es OF questions given him by the committee
matter after adjournment he remarked:
ouid It not be odd Il the 6nd Sd
enc. Is far as The Prudential is concerned, by an
"a favor oI law acceptable 10 the company
",hereoy the Prudential should enter into a new
pan providing Tor more liberal terms TO the policy
1SGloers. ana when would bind future boards Of
He added that while it was perhaps unusual
. JOE ,lnvesSugators 20 compromise with those in
BesQgafeo, this WAS unusual age.
While great deal Of the testimony to-day con-
sisted OF Uehash OF the Armstrong evidenesA and
ne Senaoore views IN reply to questions put both
by counsel and committee, there were some inter-
conhFmed President Mccarter in regard to te Ta
sauons ~ pelWeen the Fidelity Trust Company and
asa Mf In thS Sy nsgTaRss oomDaay had pare
10 by law or the custom Of the oonpsnV II II 5a @
Pne occasion at least agreed to purchase a large
"nAeh was one of the underwriters The aerea-
fiToe before % Te maze b WIN IN a6e trust company some
lsr 2I; DTyGen made Il apparent that nearly all the
Jersey corporations had been bought in the cpen
market before the Incorporation OF the Public SER
49, NE IoIp0Iauoh ana therefore had not invested in
bf Ds SeIies; @ les Ol course many Of the underlying
PrudentaI's assets. The Senator emphatfcsIiv Se
MED that the Prudential as a company or aHv OF
rs officers, had ever made cent out of any Dur-
one one or the largest purchases Of bonds the Pru-
of $4,000 OF Ihe bonds of the South Jersey Gas
ana traction Company, OF which Anthony r.
this bond sale ma ro curing @ the daX and when
par was mentioned he asked to be sworn.
Mr. KUsER GIVES TESTIMONY.
He said that there had been SO much talk about
tne money that had been made through a stock
pan he wanted to tell the tTansacon rama 16G cH i@g
paes forming the consolidation were maid IN Go3 csn
sr stlo ssecuflleS The stock Of the South Jersey
vent TO the promoters. who lived in other parts Of
about ali there Vas were cSanda Named as getfing
Adrain Riker. Thomas A Neviue sr and Thomas
GloucegterC and David Young. YrIl2SOH ''ne Duke OF
CIT. s5T; C8rPln 9 % then read from speech made by
Ssro,e the legislature, in which he remarked thai
md
certain bonds and stocks had passed before faIinS
e-ena6or had to say. N 'iie
'1Is Mr.. Record" replied Mr.. Dryden. had really
read my testimony before the Armstrong commit.
zee, he would know that the Prudential never en-
gagged IN any syndicate agreement and therefore
EaS not entitled to and did not receive any svno
elcafe benefit Record may have thought we should
FAYE taken bonus, because most everybody does
When the Senator was asked about campaign con-
A1onuons, he said they had made them for national
ELECTIONS. Senator Ninturn said:
am a policyholder in your company and in
Do you think you had right to use any money
belonging to me 10 help defeat the man favored
10r PTesldent?'
II Vasn't your ey-not one cent OF a pocv-
9olders, money vas used II ali belonged to the
StOckholderS' said Mr. Dryden.
what do you think of the law passed by the re-
cent Legislature forbiddng campaign contributions
by corporations
II say. Amen" " said Senator Dryden.
Il say, Bless you added Senator Minturn
Mr: Dryden closed his testimony by stating that
he did not favor Mr.. Packers suggestions made to
the csmmittee Monday, especially the suggestion
that the business or an insurance company should
De limited
The investigation win continue to-day