New-York tribune., 1921-06-09
Prr1dential's
Interest i'm
Banks Barred
lceatsneed trem paas one,

Fidelity Trust Company and the Union
National Bank, had deposits of s51 ,oo0.-
600 and that the Prudential maintained
with the two before and after the
merger an average deposit of S4.222,-
247 in the period from 1905 to 1919.
When Mr.. Untermycr asked Mr.. Dry
den If he knew that after the Arm
strong investigation life insurance
companies were required to dispose Of
their stocks within FIVE years, MIR. Dry
FEN replied that he didn't think that
ppiied to New Jersey institution.
,sr. Untermyer pointed out that it APP
iied to institutions doing business in
lis state.
How large stockholder are wou in
the Bank of Commerce :" asked Mr..
Untermyer.
s'I think have between 100 and 200
shares" said Mr.. Dryden.
Q.--The Prudential has kept an aver
age, for fourteen years, of cash on
hand of over $s,500,00o at different
banks? Al should think so.
Q.-Is it not the fact that more than
one-half the money has been kept in
Union and the Bank of Commerce A.
/ don't know.
Q.-Do you know what rate of in
terest the Prudential has been getting
on these deposits through those years
Alt has varied with conditions. I
think about per cent.
Q.--Don't you see, under the cir
cumstances, Mr.. Dryden, the vice of
having q life insurance company own
stocks in banks in which it keeps most
Of it's money, and on which the banks
make a good deal of meny? Al do
not
Fidelity Earnings Shown
Q.-How much did the Fidelity earn
last year? Al think somewhere in
the neighborhood Of ss00,000.
Q.-You will answer this question.
As president of this great institution,
cell me whether you would not believe
1t highly improper to put an average
of two or three millions of dollars in
an institution of which you held half
the stock? Alt is q condition that
does not exist.
Q--It is condition that comes pref
ty nearly existing? A.-No, sirs not
anywhere near it.
Q.-You think that you are entitled
to profit personally in that way through
the ownership of stock by the deposit
of funds of your company? Al do
not know that have profited.
Q-Those three concerns at the end
of the year 1914 had almost S12, 900, 600.
did they not, in deposits, of the $751;
000,0 900 and odd of the total deposits OF
the Prudential, and on that vast sum
Of money you do not think they made
any profit, do you?. Al have no way
of verifying that.
Direction of Prudential Cash
Mr. Dryden here said that the direc.
tion Of the cash Of the Prudential
rested with the finance committee, Of
which be said Howard Bayne was chair
man. Mr.. Bayne, he added, was CON
nacted with the Columbia Trust Com
pany, which he admitted was also one
of the repositories of the Prudential
Another member OF the finance cor-
rnittee, he said, was Chaiice A. Austin
superintendent of the Mercantile Trus
which Mr. Dryden was sura YVES a.
other depository of the Prudential.
It was also testified thas Nl :
Dryden owned stock in the Trust Con
pany Of New Jersey and thar tn:
Fidelity had more than S1sDO0, 900 G.
deposit in that institution
Q-Do you think, Mr. Dryden, tt.
the head of a great institution with t.
terrific responsibility with / think "
EMd S700,000,000 worth Of assstz, a.
20,000,000 policies divided among !
100000 policyholders, ought To be u
terested in banks that get partial 81.
port from the Prudential 1dfse A
sec no irnpropriety in it.
Mr. Untermyer here prpdured fgnr,
show that al the close Of 1919 til
Prudential had written IN fhiB Btat
2l.2s per cent of it's total insuranc.,
but that on the other hand it had onl
mads 3.52 per cent OF its total mort
gage loan iuvestn ents N this State G.
New York
Q-You know perfectly we1L dpn7r