Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-08-11
''PRU" APPRAISERS
GET $4,000 EACH
Compensation Is Based on the
Value of Their Work, Not
Their Time.

Special 10 the Evening Star.
TRENTON, Aug IL - Chancellor
Walker in the Court Of Chancery to-
day awarded compensation Of $4,000
each to the three commissioners who
appraised the value Of the stock Of
the Prudential Insurance Company Of
America, which is to change its char
ter from stock to mutual insur-
ance company.
The chancellor in a memorandum
reviews the various steps leading up
to the naturalization and says the
compensation of the commissioners
should not be estimated on any time
serving basis, but according to the
value OF their services to the stock
holders and policyholders.
In his memorandum the chancel-
lor says:
"On April %. 1918, the Prudential
Insurance Company of America fled
Its petition for the appointment Of
disinte-ested persons to appraise its
capital stock in accordance with
chapter SO of the laws of 1913, to the
end that the company might be con-
yerted from a stock company into a
mutual life insurance company for
the benefit Of its policyholders. On
/ July 8, 1918, after notice given to the
commissioner of banking and insur-
ance and to the stockholders and pol
/ icyholders, in accordance with the
provisions of an order for that pur-
pose, l appointed Hon. James Smith,
/ jr., Hon. John Franklin Fort and
Hon. William M Johnson commits
sioners to appraise the value of the
company's stock pursuant to the pro-
visions Of the act. Thereafter and on
various days and times after their
appointment and up to June 18th last,
when they filed their report, these
commissioners met frequently in the
consideration of the matter referred
to them. They took voluminous tes-
timony in the presence of counsel for
the company, the stockholders and
policyholders.
The amount of stock issued and
outstanding is of a par value of ST.
100000. divided into 10000 shares of
$50 each. By. reason of the enormous
and successful business done by the
company the stock has immensely
| increased In value. and its present
value the commissioners ascertained
to be the sum of $18,174, 108 50, which
represents actually S454.35, and, ap-
proximately, $455, as the value of
each share.
To arrive at a determination in
| IHlS matter the commissioners 0l0 a
very great amount of work of ex-
ceptionally high value In fact, the
work could not have been success
fully performed but by men of az
fairs and vast experience-men know
ing the value of property and securi-
ties and having the ability to esti-
mate their worth. Besides taking a
| great volume of testimony they were
required to examine ir1numerabIe ex-
hlbits. many of them of an intricate
character. They were obliged to pro-
! tect the interests of stockholders
holding $2.000,O00 worth of stock, par
value, on the one hand, and policy
holders, scattered all over the United
States and Canada, numbering H.
$685. at the end of the year 1913,
holding policies amounting in value
to $2,42S, 152. 522.
1t is apparent that the compensa-
ton of these commissioners should
not be estimated on any time serving
basis, but according to the value of
their services to the stockholders and
! policyholders. Their compensation,
according to the act, is to be paid
by the company.
| Upon elaboration and reflection |
have concluded that $4,000 to each
commissioner would be fair and rea-
sonable compensation for his services
| rendered in this matter, and I will
sign an order for the payment of
such amounts.