New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-06-24
depreciation i'm Value of
Bonds, Held Since 1906
Despite States Rul-
ing, Barred at Inquiry
Peabody Clashes
With Unternlyer
Conlpany's Holdings in
Realty Shown as 1921
Per Cent of its Assets

chsrles A. Peabody, president Of the
yutual Life Assurance Company and
director in score of other big con-
GEMS, was the star witness at yester-
a.y's Investigation by the Lockwood
committee of the financial affairs of the
Mutual with respect to their bearing
an the housing situation.
Mr. Peabody proved lively witness,
repeatedly obiecting to the questions
vut to him by Samuel Untermyer, the
sommi.tee's counsel. Mr.. Untermyar en-
joined Mr.. Peabody that he "was ROW
before legislative committee and not
ii the Mutual company's Offices"
Clashes Mark Examination
Clash followed clash all through the
examination, the running tilts reaching
climax when Mr.. Untermyer insisted
that Mr.. Peabody "must not receive
suggestions to answers" from an as
sistant who was standing by Mr.. Pea
body's side at the witness stand. Mr.,
Peabody rose from his seat in wrath
and denied the intimation.
Through Mr.. Peabody and Henry
Mendes, an accountant employed by
The committee, it developed at the hear
ing that the Mutual had millions of
dcllars worth of speculative securities
which it had held since 1906, despite
the policy laid down by the Legislature
at that time that these companies were
70 dispose of these stocks. On stocks
With book value in 1906 of S34,096,-
lS3 held by this concern on December
u, ls2U, there was a loss on the latter
date through depreciation, according to
the testimony, of $100o0,OoO.
As against the large holdings of
speculative securities by this company
Ar, Untermyer pointed to the compara-
lively small investments in loans on
real estate. Figures submitted as evil
teace showed that the Mutuaps total
Investments in mortgages in 1911
amounted 10 S140,61s,00 representing
2a.52 per cent of its assets. In 1920
these Investments had decreased to
slO4, $4,000, representing only 1921
per cent of its assets. Mr.. Untermyer
compared this to the immense real es-
tate investments of the Metropolitan
Life Insurance Company, which now
had 357,703000 tucked away in real
estate mortgages.
Banks Mortgages Barred
Additional data were furnished by
Mr. Mendes, showing that 141 savings
banks in this state on October !, 1920
mad an average of 1924 per cent Of
their assets invested in real estate
mortgages. Some of these banks had
% per cent OF their assets invested in
,his class of loans, while few had as
ioH as 22 per cent. 1t was Mr.. Inter
myers purpose to show through these
statistics that savings banks were
hnding bond and mortgage investments
9 profitable and stable source of in
come, while some life insurance COM
panles were losing money through in
Vestments in speculative stocks.
testimony was also offered on the
1lgn rents obtaining in the Eouitable
5ulldlng, 100 Broadway. George It.
mortimer, head of the owning company,
aad tailed to fill out the questionnaire
sent out by the committee. He was re-
called to the stand yesterday and ques-
.loned on the recent increase in rentals.
An A examination of the leases held by
sae tenants showed, according to wit
saeesses, that rents had been raised from
'vo 10 zoo per cent within two years.
Peabody Proves BelIigerent
Mr.. Peabody began to show his teeth
y. moment after he was put on the
STAND. He had been handed a list of
companies with which he was said TO
pe associated in some official capacity
or another and was asked to make any
correction necessary. He denied that
70 20 was at present head of the Illinois
eentra! Railroad, saying that while ne
was director for thirty years he was
omy president during the government
svn,roi s.s,i OF the line. He said the Mutual
s.iii held s2,000,000 or SO, 100000 worth
u ponds of the company, and discus
s. s,on arose over E. H. Harriman's fight
segaihst Stuyvesant Fish to obtain con-
'roi Of the line.
90 not care TO have any discus
non' numbered Mr.. Untermyer. 81
i1Sf sy want you to answer questions"
II am going to answer questions
.asne back Mr.. Peabody, 81 am going to
als~er ever my way and not yours"
On you are not" replied Mr.. Unter-
Wvisef. You are going to answer them.
rou ~ are not in the Office of the Mutual
lIe at the moment"
!, Finally Mr. Peabody said that "we
An IL, Led the fight against Fish"
wnen Mr.. Untermyer asked Mr.. Pea
oooy II ne had not been a lawyer at
VAC Time, ne remarked, 81 made a bluff
Continued on paae sx)