The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-08-12

Inc aull1lt ina most OF
the directors of the Prudential Com
pany now in office ave served many
years on the board and that John F.
Dryden has been president of the COM
pany since May, 1881. and that before
that time he was secretary thereof.
They deny, however. that for more
than twenty years last past the said
John F. Dryden as president of said
company has absolutely dominated and
controlled its management and policy.
Teh ysay that during all of that period
regular stated meetings of the board of
directors have been held at which full
reports of the business of the company
have been made and the lines of policy
to be pursued by it lave been deter
mined, and that no instance has ever
occurred, either during the said period
or before, where the president has en-
deavored to improperly influence or
control the action of such board or to
override it's Judgment and determina-
ton.
Defendants also deny that during re-
cent years or in any year the manag
ment and control of the company have
been in the interest and to the advan-
tage of the policy-holders in contra
distinction to the interest and advan-
tage of the stockholders. They further
ndey that any rights of the ~stockhold-
ers AVE been denied to them by the
directors or that there has been any
recent change in the attitude of the
campany toward it's stockholders and
policy-holders. Defendants say that
the present policy of the company was
adopted as early as 1897 and was wide
ly advertised at the time, and has been
consistently pursued ever since, with
the full knowledge and the entire ac-
quiescence of the stockholders. so far
as defendants are informed and as
they believe.
Defendants also deny that the rresi-
dent has, in recent years, denied the
rights of the stockholders of the Pru-
dental Company in its surplus accumu-
lations and has demanded and re-
ceived the support of his fellow direc-
tors in promoting policies and measures
a~ntagonistic to the interests of the
stockholders. They say that, on the
contrary, the president advocated the
apportionment to the stockholders in
the years 1908 and 1909 of 10 per cent.
of the assignable earnings of thu par
ticipating policies, in addition to the
portions of the cash dividends air ady
raid to the stockholders out of such
earnings, and that in this he received
the unanimous support of his fellow
directors, and that, while it has b.eu
the presidents view for many years
past that the greater part of the earn
tngs on non-participating industrial
policies should be ultimately returned
to the policy-holders, he has not at any
time insisted or advised tina less thal
10 Der cent. of such earnings shall be
reserved for the stockholders.
lie charge made by Blanchard tha
the price of Prudential stock, owing to
the Ignoring of stockholders interes s,
has declined until it Is now practically
unstable, IS denied. The assertion is
made that the last sale, at $3.50, in 1902,
represents the value today. 1t is also
declared that Blanchard never pro-
tested. as a stakeholder. to the volun-
tary declaration of additional dividends
10 p~oiiey-hoiders, although they were
widely advertised and known to him.
on the question of e~xtravagant
'@aaries and office decorations, the an
swer declares:
EXtrayagant Salaries. !
1t is not true that the Prudential
company has for many years, or in any
year. paid very high and ~extravagant
salaries to its president and other ex-
ecutiVe officers. They say that on the
contrary the salaries paid have been
hxed each year by the board of direc-
tors, and have never been, and are not
row in excess of fair and reasonable
compensation for the services per-
formed. They also say thai it is not
true as stated in said paragraph, that
large mounts or any amounts have
been extravagantly expended in I'M
necessary decoration, and i'm the fur
nishing Of Offices and -meeting-rooms
for the directors and executive officers
Of the company or in buildings erected
IN the city OF Newark and occupied bv
the company.
They also deny that large expendi-
lures have been made in the purchase
If real estate not needed for the pre,-
ent or reasonably near future %reuuire-
Haents of the company, at exorbitant
prices. or that 1t is proposed to erect
on the property so purchased large and
expensive buildings which are neither
authorized by law nor of a character TO
yield a profitable return on the funds
invested.
fhey say that it is true that the com
pahy mas purchased real estate in the
city of Newark for the extension of It's
home office buildings and that some
tirne in the near future it will be neces-
sary for h company to extend is
home Office buildings over the property
SO purchased. Said property was NOT
purchased at exhorbitant prices. and
would sell at the present time for a sum
in excess of the cost thereof. and all of
said property will be needed in the near
future for the erection of buildings to
accommodate the growing necessities OF
the COMPANY.
IL Is not true, as stated in said bill.
that the company has pursued a policy
of paying large salaries to its officers
or of purchasing real estate and erect
ing expensive and unnecessary build
ings for the purpose of keeping down the
accumulation of its surplus funds and
avoiding. II possible. the distribution of
accumulated profits to the stockholders.