Newark evening star and Newark advertiser., 1910-07-01

the policy
Dlhnchard s1d 9TH
Iabout 20 per cent.
stockholders, and the
Sf the argument was heard
when John r. Hardin, repro
"A them, presented to the court
ElF side, while CORNER United States
Senator John C. Spoonsr. of Wiscon-
sin. was the 4rst to break a lance for
the defense Mr.. Epooner. after giving
a technical exposition of the case. lay
ing mwch stress upon the fact that the
rights Of tho policy-holders should be
conserved as much as those Of the
stockholders. paid high tribute of
praise to former United States Senator
John r. Dryden, tho president of the
company, whose genius, he said, had
made 1t such an enormous success.
McCarter Also Pleads.
Former Attorney-Generai Robert H.
McCarter, associated with Mr.. Har-
din in the case, followed Mr.. Linda
bury for the protesting po1icy-holders
President Dryden. his son, Forrest
F. Dryden, the second vfce-president
of the company; John K. Gore, the
actuary. and other of its higher officers
were present when Mr.. Lindabury be-
gan his plea.
Mr.. Lindabury started out by saying
that relief was asked for by the COM
plaipants in the following four points:
~ That the Individual defendants
bslhg the directors OF the Prudential
\ ]leurance Company shall be decreed to
ZAclare and pay to the stockholders a
dividend of the surplus of the company
as the same shall be ascertained by the
Acourt, or of such part thereof as In the
Ejudgment of the court can be safely
distributed at this time.
"2. That the company, its officers and
directors, be enjoined from making
further payment to any policyholder of
any sum or sums to which such policy
holder may not be entitled by the terms
of his contract and from in any way
enlarging or changing the policy con-
tract of any policyholder in such way
as to authorize or require the payment
to such pelicyholder of any further sum
of money than that to which such pol
icyholder would be entitled under the
terms Of his policy contract.
"3. That the company, its directors
ana officers may be enjoined from here
after divertlng further sums from the
profits of the company by the payment
! of salaries to executive or other officers
in excess of the just requirements OF
the capable and economical admfnistra-
ton of its business.
~. That they may be likewise en-.
iotned from making expenditures In
building operations of unnecessary and
extravagant sums. not adding TO the
market value Of the real estate as
such"
Consider the Demands.
Than he considered these four de-
rrrznds In inverse order. fortifying MS
arguments with numerous precedences
ana references to authorities.
AS to the payment Of extravagant
sums in building operations, he said
that IL the right of the company to
build beyond It's present necessities IN
anticipation of its future needs and In
the meantime to lease the part not
presently needed is to be challenged
the company is entitled to be apprised
of that fact by proper pleading SC
that 1t may answer the charge.
AS to the payment of excessive
salaries, Mr.. Lindabury insisted that
mo proof whatever has been offered
az to the services rendered by the
executive officers of the company ol
as to the value Of those services"
says Concessions Are Legal.
Referring to the alleged payment OF
cash dividends and other benefits to
policy-holders beyond the requirements
of their policy contracts and other
features of these contracts, the counsel
declared with much force and effect
that it was not true, as asserted, that
these CONCESSIONS We're illegal and
amounted simply "to taking money
out of the pockers Of the stockholders
and giving it to the policy-holders.' =
In connection with this he went over
the history of the ''Pru" from the day
of its foundation, saying that safety
was of the first Importance" in calcu-
lating reliable experience tables upon
which industrial insurance policies
were issued.
The point that the individual de-
PENDANTS, being the directors Of the
company. shall be decreed to declare
and pay to the stockholders dividend
Of the surplus of the company as the
same shall be ascertained by the court
was met by Mr.. LndaPury saying that
their action in ordering the distribu-
ton among the policy-holders was de-
(Contfnued ON Fourth Page.)
2Fhroush service to Long Branch