Perth Amboy evening news., 1907-02-05

than to separate me from them. The
management of the Prudential Insur-
ance Company is relationship of
trust for millions of persons in all the
varying walks of life.
ut is charged that L. and those
associated with me, have unfairly
profited by depriving the policy hold
ers in the Prudential of the right to
vote for directors.
when the company was incorpor-
ated the policy holders had the right
to vote, but such right gave them no
interest in the company's surplus.
when the original charter gave
the policy holders voting powers it
was not believed they would become
so numerous nor SO widely distrib-
uted as 'afterward proved to be the
fact. Besides, in the development of
of the business new features were
grated on its system, which at the
outset were not anticipated. BY 1880
the future magnitude of the business
began to be more clearly foreseen.
The policy holders resided in differ
ent states, and thus ceased to have
the knowledge enabling them to vote
intelligently on directors.
All Were Equal.
THE charter provision conferred
equal voting power upon all without
respect to age or amount of insur-
ance held; upon those who might pay
single premium of five cents as well
as on those who might pay large
premiums for many years; on the
policy holder who had paid but a
single premium and the stockholder
who had invested in what was, at the
formation of the company, thought
by many to be hazardous enterprise.
For these reasons alone the law
was amended so that policy holders
should not have the right to vote,
But it is said that the company
has made large profits from which
the policy holder has received no
benefit. I appreciate fully the fact
that the large business done by the
company is due to the earnest sup
port of it's policy holders, and I have
felt that the so-called non-participat-
ing policy holders, who, by the terms
of their contracts, are not entitled to
to any share of the net profits have,
nevertheless, some equitable claim
which the stockholders should recog-
nize. / have therefore recommended
to the Board of Directors that these
policies should receive dividends in
the way of return to them of por-
tion of the net earnings, and the
board has annually paid to this class
of policy holders large sums of mon
ey, amounting in the aggregate to
about seven million dollars.
81 may be PERMITTED to say in pass
af 60
ulation of insurance until confronted
by the constitutional objection,
should conclusively prove my desire
that the business be conducted with
all possible safeguards.
my interest in the Public Service
Corporation is source of criticism.
| was interested in its formation, and
was for a short time a director At
the time of it's formation some of the
companies had been un-
successful and were threatened with
insolvency In that event their Sc
curities, widely distributed among in
vestors, would have become worth
less. To prevent disaster to investors
and hardship to the communities
served aided in the formation of the
Public Service and consented to serve
on it's board, devoting my energies
solely to its proper financing. I in
vested and induced others to invest
In the stock. From this investment
we have as yet received no return.
The holders of the underlying secur-
tiles have been protected and the
companies have served their respec-
tive communities.
Public Duty First,
'In the active administration of
the Public Service / have had>no part.
In conscientious endeavor to dis
charge my duties as senator |, have
never found that my obligation to
any corporation affected any public
obligation, save possibly in federal
regulation of insurance. In that case
my most captious critics would
scarcely say l placed private obliga-
tion above public duty. | need
scarcely point out that the federal
government has no power to legislate
in respect to public service or trust
companies doing business in New Jer-
sey, and that my connection with
them cannot in any way interfere
with the discharge of my duties as
senator If, however, in the future
these relationships, or any others, in
terfere with the dise,snrge of my dut-
les as a scia.or. | will either termin-
ate those relationships or resign my
seat
"If l felt at liberty to consult sole
ly my personal inclinations, | should
end here But in extreme license my
enemies have seen fit to insinuate a