pany's assets would well be
worth twice or thrice or even more than what could be
figured out as the value of the stock on the books of the
company. On no other theory can the figure offered for
life-insurance company stock in some cases be accounted for,
since these offers are not warranted by the surplus nor by
the dividends paid, nor by both combined.

Is there aught to prevent a bold manipulator from entering
this inviting field and purchasing a controlling interest in
the stock of enough such life-insurance companies to make
their combined assets aggregate one hundred million dollars
of the more than six hundred millions of assets of stock
life-insurance companies doing business in Massachusetts?
This accomplished, he transfers his rights to a "trust," or
an association, or trust company, which is not only a bank
of deposit, but is also engaged in brokerage schemes, in
financing large enterprises and promoting all kinds of
corporate consolidations, and underwriting their stock for a
consideration. The central controlling trust company, or
whatever it may be, becomes a medium through which the
investments of the controlled insurance companies are made;
all sales of their securities pay tribute to its treasury;
all funds awaiting investment are deposited in its keeping;
the most valuable of their securities are turned into cash,
and then used by the controlling power for such purpose as
it sees fit. All these things are conceivable, and their
accomplishment would be a no greater task, seemingly, than
some of the gigantic "operations in finance" of the last few
years.

Judged by what has happened in other fields, this trust
would not only control these vast assets, if the plan should
be executed, but would control them without individual
liability on the part of its managers.

THE PRUDENTIAL MERGER CASE

Is there really any danger, it may be asked, that any trust
or syndicate will attempt to control the stock and assets of
life insurance in this way, or is this simply the
presentation of possibilities? As an answer to that question
here follows a plain, unvarnished story of what has been
attempted and what has taken place within the past year
between one of the life-insurance companies doing business
in Massa