Perth Amboy evening news., 1910-11-25
SHOWING
IN THE
OF PRUDENTIAL

n to test the. accuracy of the COM
pany 8 last annual statement. AS a
esult of an extensive and thorough
investigation covering a period of
several months, the examiners have
now submitted a report on the COM
pany, which has brought forth strong
commentator from the Insurance
Commissioner for what is termed
"the highly satisfactory and credit
able showing it makes for the in
stitution and those identified with
its management
The examination covered every
every phase of the company's bust
ness; and the progress made during
the three years since the laset invest
igation is best typiied by the state
ment that the. company's assets have
advanced from 1877 million dollars to
over 200 million dollars, or more
than 81 per cent, while the insur-
ance in force has increased from over
n billion two hundred million dol
lars to over one billion seven hum
dred million dollars, this cast IN
crease certainly justifying the ex-
aminer's statement that the company
had shown a remarkable growth
in all respects"
The cash in the company's Office
was counted at the close of business
on December31, 1909, and seals
were placed upon the bonds and
stocks owned or held as collateral
by the company, the examination of
these securities alone,Twhich were all
investigated carefully, required
nearly q week. The proportion OF
government and municipal bonds
owned by the company showed a
marked Increase, while the amount
invested in stocks represented but
one and a half per cent. of the COM
pany's assets. These stock holdings
consist of trust company and natio-
nal bank stocks exclusively. The
examiners noted that the proportion
OF cash on hand and in bank was
but little more than one half of the
amount shown in the examination
made six years ago.
The Prudential owns and holds
some of the most valuable property
In the business center of Newark.
Th1s has increased materially in
value since Its purchase by the com
pany, in some cases two or three
times over the original cost. The
appraisal of the incompleted addition
to the North Home Office Building
was a problem for the examiners.
AFTER thorough Investigation, with
the assistance of an architect of very
large experience, the examiners al
lowed as an asset the book value, as
stated by the company. 1t is inte-
resting to know that the value of
the real estate held by the company
for office purposes has increased
from about eleven million four hun
dred thousand dollars to thirteen
million dollars, which ismainIy due
to the above addition referred to,
made necessary by the requirements
or its office force. The be-
lieves this will provide available
office space for many years to come.
A side light on the Judgment dis
played in the company's real estate
investments was shown in the fact
that the sales from the few fore
closures which the was
compelled to make on its real estate
holdings during the last three years
have realized an average of about
five per cent. more than the book
values of the properties involved. A
large percentage of the mortgages
held by The Prudential are on farms,
which have proved to be excellent
securities for loans, as none of the
foreclosed properties new held by the
company are farms.
When the State Examiner began
to check up the policy section of the
company's business they found that
The Prudential had over eight mill
lion Industrial policies in force, rep
re%senting insurance in excess of one
billion dollars. Great numbers of
these policies were tested and the
records found to be accurate In every
respect. The Prudential carried at
the end of 1909 over six hundred and
fifty million dollars of Ordinary Iu-
surance, and in order that the ex-
aminers might Investigate this Or
binary business without interfering
with the daily routine Of the com
pany, it was necessary to write I'D
seyenty-four thousand cards for
their use. Daily reports of premium
collections and the essential details
of policy records were tested, cover
ing several years of issue, without
any material error being discovered,
and the fact that the company car
ried on its books all policies on
which premiums are being collected
was well shown.
The P~rudential's assets. as re-
ported by the company at the end of
1909, was over two hundred million
six hundred thousand dollars: but
the Insurance Department examiners
gave the company credit for nearly
a million dollars additional assets.
the increase being due principally
due to real estate holding which are
valued by the Insurance Department
at about a million dollars in excess
of the amount for which The Pru-
Dental had taken credit.
In addition to this item. the De-
partment examiners also allowed The
Prudential additional surplus am
ounting to owe 100000, making
the total surplus $1~6,T22,58O.
In order to enable the to
comply with new governmental re-
quirements, the Inherent complexity
of its bookkeeping has been neces-
sarily increased, while the compli-
Gated character of the company's
business is reflected in the books and
records Of all branches and depart
ments.
The Prudential has always had a.
reputation for prompt payment oil
claims, and is now paying out an av-
erage of about $4,000 per business
day, the Aggregate amount for the
mast year haInV a1E AQ9 E10 Tho