The New York herald., 1921-10-13
UNTERMYER CALLS
REPORT WHITEWASH
New Jersey Findings in Pru-
Dental Inquiry Inspired
He Says.

Following the issuance OF a favor
able report on the affairs or the Pru-
Dental Insurance Company of Ameri-
ca. made yesterday by the New Jer-
sey Commissioner of Banking and
approved in the main by the heads
of insurance departments of New
York, Indiana. Massachusetts, and Mis-
souri,. Samuel Untermyer. counsel for
the Lockwood committee. attacked X
last night as IAN inspired whitewash."
1t was criticism Of the company
made by Mr.. Untermyer during the
Lockwood committees investigation
that caused the banking officials in
quiry. The report Is a statement OF
facts without comment or recommen-
dation. 'I would prefer to see the re-
port, rather than the Prudential Life
version of Il given to the newspapers
Mr. Untermyer said, when asked to
comment on it. II infer, however, that
Il Is an inspired whitewash. as I pre-
dicted II would be. 1t will be interest
ing to know what the report itself will
have to say about the transactions be-
tween the Prudential Life. the Fidelity
Trust Company. and the Public Service
Corporation of New Jersey and how
these transactions will be explained
away.
''As the Lockwood committee will
shortly resume its hearings Mr.. Dryden
will have another opportunity Of ex-
planning these many sided transactions
in the open light of day. His 15.000,000
policy holders are still wondering why
he refused to answer questions concern
ing the uses to which their money was
put on the ground that he had been
advised by his counsel not to answer the
questions. and on that ground alone.
Mr.. Dryden will get another opportunity
to answer those questions. After have
read the report / may have something
to say
Chief interest has centered in the
ownership of stock In Prudential de-
pository banks by officers of the COM
pany. The report which was made pub
lie at Trenton details such owner
ship. with dates OF purchase in relation
to the dates of election to Prudential
dictatorship, the amounts of Prudential
deposits involved and whether the di-
rectors or officers obtained loans or dis
counted notes at the banks concerned
while directors of the Prudential and
stockholders in the banks.
The report refers to efforts made be-
fore the Lockwood committee to show
that the directors would not surrender
their stock. and points to the fact that
these men have all agreed to the pro-
posed pledge. Taken in connection with
the showing made of the legal ques-
tions involved in director stock owner
ship for qualification purposes. the re-
port is in effect a justification of. the
stock ownership attitude Of the direc-
tors.
After giving detailed figures for the
four principal insurance companies in
comparison Of business done with vol
ume of mortgage loan investments. first
as to New York State and then as to
all other States. the report continues:
"The figures show that II the New
York companies had been required to
restrict their mortgage investments in
New York State to a percentage equal
ling the business they do In New York
State. the mortgage investment In New
York State of the four companies COM
bined as one would be reduced from
64.0S to 20.1 per cent.
'The New York mortgage loans of
the four New York companies combined
as one are $4ss, 1878. Had the plan
outlined been enforced these loans
would be reduced to st51, 1,45s,2S6 Tho
loss of New York State from these
four companies would be $336, ,597.4s
Tho preceding facts are given to
show the effect any legislation along
these lines might have with respect to
investments in New York and other
Ing the theory as basis for such leg
faIa tt0r -