The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-06-29
SEEKS TO. HALT
PRUDENTIAL S BIG
INDUSTRIAL GIFT
Leon F. Blanchard Asks for In
junction Against Proposed
100000 Distribution.
WANTS MONEY KEPT
FROM POLICY-HOLDERS
r. v. Lindabury, for Company,
Says II Is Too Late to Re-
cali Directors Orders.

call Directors Orders.
John r. Hardin, of Pitney, Hardin &
Skinner, representing Leon F. Blanch-
ard, Of this city, asked Vices Chancellor
Howell in Chancery here today to issue
temporary Injunction restraining the
Prudential Insurance Company from
distributing $4,000, 900 of it's surplus to
Its industrial policy holders on July l..
Vice. Chancellor Howell said that he
thought that the notice given on the
application for the preliminary injunc-
tfon was too short, because it opened
UP. so many important points. Mr.
Hardin said he was willing to give
Richard v. Lindabury, counsel for the
Prudential, more time
Mr.. Lindabury said that he did not
want any more time, for the reason
that there would be no good in issuing
an injunction. The distribution Of the
funds to the policy-holders was not
contemplated. he said, but. as matter
of fact. had already been done He
said that the directors had voted on
June IA to make the distribution. They
had notified 1850 agents in the United
States and canada, affecting S,00oo9O
policy-holders. Tie notices could not
~ .,-txt,5raxu, ta eaid
He claimed six months pursuance
of the action voted on by the directors
would not be harmful to the company.
whereas sf an injunction were issued 1t
would cause great confusion and mis-
understanding among the policy -holders
and mean great loss to the company.
AS denotipg the enormous business
done by the Prudential, Mr.. Lindabury
said that the company issued 1924 in
dustrial policies every week.
Diyision Of Surplus.
The division of the surplus, the dis
puted matter. was necessary in order
to repay the policy holders for the
amount of extra rates. or premiums.
which they had paid in. and which was
too much, said Mr. Lindabury.
How will this company be able to
carry on its business If agents of other.
companies can in competition for new
business claim that their rates are
lower?" asked Mr., Lindabury. This
matter that they want to restrain in
wolves only a few thousand dollars
for the short time it would run, whereas
If we don't do it, our business would
receive a staggering blow from which
I know not how we would recover"
Mr., Hardin here attempted to renew
his opening, but was interrupted by
the yice-chancellor with the question
as to whether any other stockholders
had come in on the move to protest
against the distribution.
mo others are named. but there are
fully 20 per cent. who are with us" re-
piled Mr.. Hardin.
Name them" demanded Mr.. Linda
bury.
n win at the proper time replied
=. Hardin.
Perhaps they are ashamed to allow
their names to appear" suggested Mr..
Lindabury.
Because some rival has cheapened
their rates. continued Mr.. Hardin, 'is
reason why they should be allowed
make this move. which would de-
I've the stockholders of their just
yhts on the money they. have in
vestedy
NfcCnrter Takes Hand.
After a dispute between counsel as
10 whether Mr.. Hardin was speaking
on his opening or in reply to the
answer by Mr.. Lindabury, Robert. H
Mccarter, who is associated as counsel
with Mr.. Hardin on behalf of the stock
holders, was allowed to address the
court. and said that--a the matters
were SO confusing he would draw al
mental picture of the company as 1t
had been, before the reform legislation
of 1907, which he said had been too
soon forgotten, and since.
ssAt that time" he said. "the COM
pany was asked to make declaration|
as to its future manner of doing busi-
ness, and it declared it would go on
record as a non-participating company,
the policy-holders to secure only that
which belonged to them under their
policy, and the surplus to remain where
it was, no disposition having been made
of III"
At this time an interruption by Mr..
II fx,t
mate that certain high officials in theI
fContinued second Page.)