Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-03-11
GRANT HEARING ON
PRU MUTUAL PLAN
Counsel for Minority Stock
holders Pleads for Re-
lection of Bill.
TFrom a stan Correspondence


TRENTON. n. j., March 11.-Sam-
vel ontermyer, who was counsel for
the PuJo money trust investigating
committee, appeared before the
House committee on banks and in
kufance yesterday as a representa-
tive or the minority stockholders OF
me Prudential Insurance Company,
TO protest against the passage OF
the bill making the company a mu-
taal instead of stock company.
His clients. Mr.. Untermyer said,
would withdraw opposition to the bill
L IL would provide for a foundation,
ur body OF founders, to consist of
the Governor, chief justice of the
supreme Court, Commissioner OF
Banks and Insurance and six other
responible men. whose duty it would
De to select boards OF directors. In
TINS way, he argued, there would be
provided protection for the policy
holders.
Mr.. Untermyer's suggestion brought
forth expressions of surprise from the
attorneys for the Prudential, who said
1t was odd that the attitude of the
minority stockholders had undergone
such change since the hearing be-
fore the Senate committee, where
their chief contention had been that
the $20,000,000 surplus of the company
should be capitalized and turned over
to the stockholders. Nothing was
heard at that hearing, counsel for the
company said, about injustice to the
policy holders, and they thought it
odd that Mr.. Untermyer should now
Co. Of
minority stockholders primarily.
William H. Hotchkiss, who was
State superintendent of insurance In
New York during the administration
of former Governor Hughes, said that
while holding that office he, too, had
had the dream of foundation, similar
to those which control philanthropical
and educational institutions, for In
surance companies, but that while the
dream was pleasant he had to get
over it, and that was what Mr.. INTER
myer would have to do.
He pointed out that t,.o chief ques-
ton at issue in the proposed legisla-
ton was not whether the stockholders
or the policy holders were to control
the Company, but that it was the dis
position of the surplus, not only for
the present. but for all time, and the
establishment of a foundation would
not at all affect the disposition OF
this fund.
There will be no more hearings on
the bill, which has passed the Senate,
and Assemblyman Rowe. chairman
of the committee, said the commit
tee would act on it very soon
Richard " Lindabury stated the
company's position on the bill at the
opening of the hearing, declaring that
naturalization is the demand Of the
time. and that other States already
have similar laws, notably New York.
He said that in drafting this bill care
had been taken to provide the utmost
safeguard for stockholders and pol
icyholders. Just where the title lies
to the company's $20,000,000 surplus,
he said, was uncertain, and with
policyholders claiming that it should
be returned to them as an excess on
premiums, and stockholders declar-
ing that it should come to them in
dividends, a troublesome situation
for the company was created. So the
bill had been drafted, he said, to al
low the Chancery Court to pass on
the title to the fund, allowing stock
holders the right to appeal to the
Court of Errors and Appeals If they
were dissatisfied. Thus, he held, no
stockholder would be deprived of the
full value of his stock.