The New York herald., 1921-06-09
PRUDENTIALS FUNDS
PAY TWOPROFITSTO
INSURANCE OFFICERS
Large Sums Are Deposited
i'm Banks i'm Which Com
pany's Directors Are
Interested.
DRYDEN is GRILLED
Fourth Of Business From
N. Y. People, Only 1852
P. C. of Money in Mort
cages Here.
COURTS GET HARD SLAP
Untermyer at Hearing Talks
of Farce of Justice and One
Kind of Law for Rich and
Other for Poor.
GET HARD SLAP

Forrest r. Dryden, president OF the
Prudential Insurance Company OF
America and son of the founder of
the institution, was grilled yesterday
for two hours by Samuel Untermyer,
counsel to the Lockwood legislative
committee, concerning the company's
business, It's investments, its assets
and surplus and the general effect Of
its business policy upon the housing
situation.
In addition Mr.. Untermyer ques-
toned the propriety of an institution
like the Prudential acting as trus-
tee of funds for 15,000,000 persons.
leaving millions of dollars on deposit
in banks and trust companies d.
rected to a considerable extent by
men who are also directors of the
Prudential.
Mr.. Dryden was compelled or tive
or three occasions to listen 70 Mr.
Untermyer draw compari ems 5s
tween the policy Of the Irudaaf'cl
and that Of the Metropolitan. i,s com.
petitor. Mr.. Dryden came to the
hearing accompanied by two attor.
neys-Edward Dufheld, vice-president
and associate general counsel Of the
company, els Richard ". L,ndabury.
INTERN shar~s f'ssu-es.
Mr.. Uatsrlavar oirce2 aceous
ants fl. rsa u shcr that whiis tns
Prudential obtained 22.26 per cent.
Of its total volume of outstanding
insurance In New York State,
amounting to approximately $5,000..
900. 900. the proportion Of it's invest.
ments In New York State mortgages
was but 3.52 per cent. as against
1891 per cent so invested in other
States.
When he had developed this point
and obtained Mr.. Dryden's promise
to submit q statement showing the
company's purchases in bonds and
notes since the outbreak of the war
Mr.. Untermyer concluded his exami.
nation with dramatic appeal to Mr..
Dryden to throw more of the $780,
0o0.0 resources of his company into
the building loan and mortgage mar
ket to relieve the housing situation
in the State that gives 1t approxi-
mately quarter of its total business.
Mr.. Dryden declared that was a mat
ter for the finance committee of the
company to decide.
How much money are you ready to
| put into bonded mortgages on real
estate In New York city?" Mr.. Inter
myer asked.
Our committee put aside million
dollars for the housing situation" the
witness began.
How much ?" demanded Mr.. Inter
| myer. When the witness began to re-
peat his answer the. lawyer for the
committee exclaimed:
"A million dollars, That lis a great
! sum. Do you know how much the
Metropolitan Life has put into mort
cages on real estate in the last two
years in the city of New York; Mr
Dryden declared he did fot
DO you know that IL IS over $780,.
000.o00?' Mr.. Dryden did nof
What I want TO know ig hor ". ica
OF your money are you reaaN .o 49,
into bonded mortgages in New York;
Are you ready to put in twenty-five or
fifty millions?"
Dryden Unable TO Answer.
"T am not able to answer the qucs-
ton" Mr.. Dryden replied.
who Is able to answer"
The finance committee will answer
that"
II see. So we are back with the
/ finance committee. are we?" Mr.. I'm
termyer remarked with a gesture OF
dispieasure.
Mr.. Unternyer began his oxamina-
ton OF Mr.. Dryden with inquiries con-
cerning his personal interest and the
holdings OF his fathers estate In some
of the institutions that acted as de-
positories for the Prudential funds.
He brought out that at the time OF
its consolidation with the Union Bank
OF Newark Mr.. Dryden held in hia
own name and on behalf OF tho estate
an aggregate OF ASIA shares Of the
Fidelity Trust Company. The two In :
stitutions were consolidated last jan
uary as the Fidelity Union Trust Conn
pany and 5000 shares OF the old FL.
deity Trust Company were also then
held by the Prudential company itself.