Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-10-24
POLICYHOLDERS
TO SHAREPROFITS
OFPRUDENTTALCO.
Big Life Insurance Corpora
tion Converted Into Mutual
Organization With Bene-
fits for All Members.

The Prudential Insurance Companv a,
America, one Of the largest life insur.
ance stock corporations in the world. 4,
to be mutualzed. The 100000 and NOR.
policyholders of the company have bean
invited to be represented at the annual
meeting of the corporation In Newark
n. j., the home office, on December
when the scheme to change the compsnv
from a stock to a mutual company will
be finally put through. Enough proxIs,
have already been turned in to of1e.r,
of the company to make the change
certainty.
Under the naturalization plan all policv.
holders Of the Prudential will share IN
the profits Of the company There will
be no stockholders in the comnnnv. and
its affairs Will be conducted entirely for
the benefit Of policyholders in the vay
mutual companies are usually conducted
Those who now hold stock In the com.
pany Will surrender 1t on basis OF az;
for each share having par value OF 80
Scventy-seven per cent Of the stockho,d.
ers have already agreed to the surrender
Policyholders, 81 years OF age and over
whose policies have been in force for
year or more, will be eligible 10 mar
tictpate In the proceedings of the Decen
Der Z meeting. EN-Chancellor William
j. Magic and ex-Supreme Court Justlcs
Bennett Van Syckel, of New Jersey, and
John X. Gore, vice president Of ths
Prudential. have been named as a com.
mittee to look after the affairs OF policy.
holders who will vote by proxy
WILL BENEFIT POLICYHoLDERs
In the first statement issued by the
Prudential concerning the plan of mil
tualization, Forrest F.. Dryden, president
of the company, outlines some OF tn,
benefits which the company feels WI
follow the naturalization. He SAYS:
The plan of naturalization was ador..
ed In the belief that 1t would inure :,
the welfare of the company and would ~
suit In substantial benefit to It's policy
holders. AS the proceedings have pro-
| gressed we have become more firmly con.
vinced OF the correctness of these con-
cluslons.
while the company must maintain an
impartial position in connection with ths
policyholders' meeting. 1t is nevertheless
proper at this time to advise the pol, "
holders of the reasons which have actr-
ated the management In instituting the
proceedings and carrying them to their
present stage.
THE naturalization OF the company will
provide for the election of directors by
the policyholders. which will insure for
all time a continuance of the uniform
practice of the Prudential to accord to
Its policyholders the greatest degree OF
! nberality commensurate with safety.
when naturalization is effected dis
tri5ution of the surplus earnings OF the
company VIII include all Its pollcyhod-
ers, both participating and non-particl-
pat'ng. While under the existing low
rates the net cost to the present policy
holders may not, at the outset, be greatly
reduced on account of naturalization
nevertheless every dollar earned by a
continuance of the sound and economical
| conduct of Prudential affairs will. from
the very beginning, be credited TO the
policyholders as the owners of the COM
pany.
we believe that the substantial bene-
fts to be gained through the acquire
ment by the policyholders of the stock
at a price judiclally ascertained to be
fair and reasonable will appeal forclbly
to them and will induce them to give ap-
proval to the plan"
The capitalization OF the Prudential is
y OOo,OOO full paid. Insurance which the
| company had in force at the end OF last
year totaled 1914 100000 in the ordinary de-
partment and 81 ,462. 600 600 in the industrial
field.