The New York herald., 1921-06-09

that Mr.. Dryden held between one ana
twf hundred shares of the stock OF the
M lonal Bank OF Commerce. and that
fol the last fourteen years the Pru-
Dental has kept an average cash bal
ance on hand of more than $500. 900
distributed among several Institutions
The examination on this point ran:
us it or not fact that more than
one-half of that money has been kept In
these three banks the Fidelity, the
Union and the Bank of Commerceg
II cannot answer that don't know.
Rate of Interest Paid.
do YOU know through those years
from 1906 to 1919, inclusive. what rate
of interest the Prudential has beer
getting on these deposits?"
''It has varied with conditions"
O. What is it getting now? A. thins
per cent.
q. Do you know? A. am not sure
q. Don't you see, under the circum-
stances, Mr. Dryden. the vice of having
life insurance company own stocks II
banks in which they keep most or theii
raoney on which the banks make a great
zeal of money? A. l do not
~ lou 90 Hob. "a uvii eiAAiN NNN1
make much.
Q. Now, you don't mean that, do you
A / do.
Q. Do you know how much the F'idel-
ity earned last year, 1920? A. dom
know / don't remember. | think $500
900; somewhere in that neighborhood.
Q. Don't you see the improperly in a
president of the Prudential owning large
blocks of stock in bank in which the
company carries these vast deposits and
thus profiting on what the bank or the
trust company earns on the deposits
A. My holdings are in proportion--
9. Answer my question. A. l see no
objection.
Dryden Sees No Objection.
@. Not even though you have 10 per
cent. of the holdings OF the bank and
trust company? A. Personally l have
not.
Q. No. you and your estate? A. No
q. You don't see any objection? A
No.
o. If you held 20 per cent. would you
see any objection? A. l don't know that
I would.
@. II you held so per cent. would yor
see any objection? A. / don't know
what would see then.
O. just think 1t over and tell me
whether you would see any objection tc
an institution OF this kind holding fr
trust the funds OF 100000 people In
which you have no personal Interest
whatever. A. 1 don't propose
Q. One moment. DO you mean to sa,
you would see no objection in thei'
funds being held in an institution o
which you held so per cent? A. l an
not thinking
O. Take think and tell us. A. l an
not going to think about it, sir.
.. Well. you will think about it, ant
you will answer the question. A.
won't answer a question as to what
think If something else existed.
O. / asked you. as president of this
great trust institution, in which yot
have no personal interest, to tell me
whether you do not believe 1t would bs
highly improper to put an average OF
1000, 900 or $4,000. 900 in an institution
In which you held half the stock? A.
have not given the matter any thought.
tk Dryden Sfdesteps Answer.
Q. You give 1t some thought now. sir
and tell me what you think. A 1t Is a
condition that does not exist.
Il .. You think do you, that you are
entitled to profit personally in that way
through the ownership OF stock by the
deposit of funds of your company? A
/ do not know that have profited.
o. DO you mean to say where there
is an average of over S3,500.000 through
IA series of fourteen years. held In ar
Institution OF the furds of your com
pany that the bank has not prontedf A
do not know that got anything from
that.
Q. We are talking of the two con
Germs together now. They are consoli
dated and you are interested in both
and DO you want this committee to un
derpAnd you. as a man at the head o.
n gfeat institution that where a life In
ssTance company keeps these vas. sum-
IA the bank year after year. whether ol
not the banks profit by those funds ant
the use of them? A don't know tina
they have.
I G. You don't know that they have
A. No ] do not
O. DO they profit by anybody else!
funds? A. / presume they do.
( @. Le. us see how far you are pre-
pared 10 20 or this subject. Mr.. Dryden
Are you prepared TO go TO the extent o
telling this committee that YOU don
know whether these companies profiteC
nv the use OF these funds OF the Pru
Dental Life? A. Yes ! do not know.
s1s,ooo.ooo High Point In Cash.
4 q DO you know what the highes
amount Of cash on hand in the Pruden
tial. at any one tire. was? A. thinl
it was in the neighborhood Of $4,000.
600.
I @. Now. we have IL here. s1s,s75,5
in the year 1914. a. the highest. A
Well, .hen, am mistaken.
Q. And OF that amount. n II or no
sha fact that the Union Bank hel
81. .633.340 ss an average throughout th
wear In each case; that the Fidelit
Trust held s4.5s7.o52, and that tb
Bank OF Commerce held s5,753.753. 4
1 arm not familiar with the averages 81,
O. And still you see no impropriety 1
your holding stocks In those banks. d
you? A. No, sir.
q. You see no impropriety in you
directing two-thirds OF ell this vas
amount OF cash that is kept by the Pru
Dental, into the banks In which yo
have these large holdings-none what
ever7 A. That does not rest with me
4 10 rests with the finance committee
q. II Il rested with you Il would b
dffrerent? A. don't know what woul
happen.
BANKERS ON Finance Committee.
Mr. Untermyer here went into tn
personnel OF the finance committee o
/ the company and showed that OF IN
seven members several were connecte
! with banking institutions in New Yor
or New Jersey. They include Howar
Bsyne. " the Columbia Trust Com
pany: G. A. Austin. OF the Mercsntil
anf 81