Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-04-12
Il STOCKHOLDERS
JOIN SUIT AGAINST
PRUDENTIAL CO.
Action Resumed Which Seeks 10
Prevent Surplus Distribution
to Policy.holders.
TESTIMONY GIVEN BEFORE
SENATE READ IN COURT
Complainants Now in Suit Own
8,70O.64 Shares of Com.
pany's Stock.

When the suit against the Prudential
Insurance Company, TO compel that
company to distribute it's surplus
among the stockholders instead OF the
policy -holders, was resumed before
Vice Chancellor Howell in the Court
of Chancery today. the first thing done
vas the continuation of the reading Of
the testimony taken before the New
Jersey Senate in it's investigation OF
the insurance company. This was done
by former Attorney General Robert H
McCarter, who, with John p Hardin,
appears for the cornplainants.
Seventeen other Prudential Insurance
Company stockholders became co-com-
plainants yesterday with Leon F.
Blanchard. who Instituted the original
action and. holds I25 shares Of the
cornpany's stock, while with the addi-
\ ton of the other shareholders there
are now s,700.s4 shares represented by
the corplainants out OF 10000 shares
outstanding.
Richard V. Lindabury, Senator John
| G. SpooIier. OF Wisconsin. and Edward
D.. Duffield appear for the defense.
The suit is founded upon the alleged
efforts of the company's directorate ito
policyholders at the expense of the
j stockholders According TO the bill
filed in the suit, the stockholders are
entitled to such distribution If 1t can
be safely made, and that to withhold
such distribution and to diminish the
amount of the surplus by voluntary
| gifts TO the policyhoiders. is without
| legal warrant In its answer the coua-
pany insists that nothing has been
! done that was not for It's safety ard
| prosperity e--
Julius 5. Rippel Tesfines-
; Julius S. Rippel, dealer In stocks,
was called as Witness. the reading
of the testimony by Mr.. McCarter being
\ fnterrupted because he was anxious to
get away He. first said that he had
ibeen II, business for ninefeen years.
! and for the last fifteen years had been
familiar with the market value OF the
Prudential Insurance Companyis stock.
Mr.. McCarter said tlat he wanted
to show that there had been a steady
! decrease In the marKet value of this
stock
: What was the market value of the
stock fifteen years ago." denaa nded MI
McCarter.
This question was strenuousiy OBJ
| jected to by counsel for the company.
but Chancellor Howell said that
he would allow questions along thar
I line subject 10 the objection.
II will allow the testimony subject
to your objections the court said to
Mr.. Lindabury ut seems entirely
relevant whether the stock has mar
ket value or no value, whether it is
! high or low
what was the market value about
fifteen years ago?" repeated Mr.. Nc
| Carter.
st can't tell just now" was Mr Rip
peps answer, but can tell you from
1901, according to list which issue
every Saturday"
! The broker was asked what this
weekly list was based upon, and said !.
! at endeavor to base II upon actual
sales on the nominal quotation prices
at which a broker would sell stock
/ Give the figures from 1901" sug-
! gested Mr. McCarter.
Figures at which stock Sold
i Mr.. Rippel replied that in that year
! the sales we're at $3.50 to $500. Then he
gave these other figures 1902 sI2S to
ss25; lsos,, $500 to $500: 1904. $40 TO
s42s: 1905. s4oo to $3.50; 1906. $3.50 to s42S:
1907, sx00 TO 500; 1905, s420 to s42ss 1893.
s54o to 5000. j zs-
I'm 1903, 1904 and 1906" added Mr.
! Rippel, IT had considerable more sales
than in the last year or two
Asked whether the decision in the
Robothanl. case had affected the sales
adversely. the witness aswered In the
affirmative and added that the Fidelity
merger also had "a great effect on the
market price, and that the sales were
less and al lesser prices.
You remember the Insurance. in
vestigation of 1905 in New York. the
Armstrong investigation?' asked Mr.
Lindabury. During that investigation
the selling price fell considerably, did
1t not?H
"The figures in 1906 we're lower" Mr..
Rippel answered.
IAN insurance stock fell. did it notT'
Mr.. Lindabury wanted to know.
II don't know came from Mr.. Rip
pei. '"rhat was the only stock dealt
in. New Jersey securities"
"But you are general stock broker.
'rYes, sir. but l deal in New Jersey
securities
ORIGINAL Complainant Takes stand.
After Mr.. Rippel had closed Mr.. Nc
Carter continued the reading OF the
testimony given before the Senate In
yestigating committee until he became
4 tired, and then Mr.. Hardin took It UP
and continued FOR more than half an
thour.
MIR. Blanchard, the original complain
ant In the case. was called as wit
ness next. and said that he was asked
as TO what reports he had received
while he was stockhoider OF the COM
pany.
only such reports as are distributed
10 the field force" was his answer.
! The first question by MFR. Lindabury
was:
when did you become a stock
hoiderc"
About 1855
what is your business
II am not actively engaged IN any"
was the answer
Pressed a little further, Mr.. BIanch-