New-York tribune., 1921-06-29
Prudential Asks
New Jersey to
Investigate 1t.
Directors Request Inquiry
Into naturalization and
Bank Afailiafion Charges
Made at Hearing Here
Untermyer Called Unfair
Dryden Upheld in Defiance
of Committee Counsel:
Phillips Would Aid Probe


Richard V. Lindabury, counsel for
The Prudential Insurance Company, an
rounced at Newark yesterday that the
company had requested the New Jersey
state Banking and Insurance Commits
sioner to make thorough investiga-
ton of the Prudential's affairs.
The action comes as a direct result
of the recent examination of Forrest
T. Dryden. president of the company.
before the Lockwood committee on
housing By Samuel Untermyer, the COM
mittee's chief counsel. The decision
OF the board of directors of the cor
Soration to ask for the inquiry was
embodied in q report of the proceed
inzs submitted to them by Mr.. Linda
bury and Edward D. Dufield. associate
counsel, at meeting yesterday.
Directors Stand by Dryden
The examination of Mr.. Dryden is
characterized In the report as grossly
unfair" The document asserts that
"it was made quite clear that the Pru-
Dental had nothing to expect from the
committee except Misrepresentation. -
It was Indicated, too, that the directors
woGld support Mr.. Dryden in any fight
against the contempt proceedings pend
ing against the Prudential president
for his refusal to answer certain cues
tions on the witness stand, "helieving
that there should be judicial ascer-
tainment of the limits to which Mr.
Untermyer- and his committee can go
IN their inquiry into housing conQi-
tons in New York"
The directors resolved that THE
Commissioner of Banking and Insur-
ance Of the State of New JERSEY be
requested to make an examination of
the affairs of the Prudential from 1902
to the present time. with special ref
erence &c its relation to and dealings
with the Fidelity Trust Company; the
character and extent of its deposits in
other banks; Ghe naturalization OF the
company IN 1915, and any other matter
TO which his attention may be called
by the Lockwood committee or anv
policyholder of the company, and that
he invite the commissioners of all
other states In which the company does
business TO cooperate with him in max
=. ing such an examination"
1t also was resolved that "the di-
reetors approve the refusal of Mr.. Drv-
den to submit to an examination bv the
Lockwood Committee outside of the
authority conferred upon it by the
legislature"
Phillips Would Cooperate
Jesse S. Phillips, New York State
Insurance Commissioner, commenting
on the matter. said that if he was
asked to cooperate in such an investi
cation he would do so.
The truth should be got at" Mr..
Philips said. Il am satisfied that the
aHalrs Of the Prudential are all right.
SO lar as the naturalization is CON
eerned, and that the policyholders are
lul!y protected. If there ever was
mat0alizsslon OF a siife insurance com
psny IN which policyholders were pro-
eeceed, that of the Prudential was one
rom beginning TO end. Some people
are not SO anxious TO find out the facts,
out to distort the facts"
IN ms report Mr.. Lindaburv said:
ABOUT two weeks ago Mr.. Dryden
attended a session of this committee
q. tne request of Mr.. Untermyer TO -ex-
pam certain mortgage loans made by
sne Fruoentlal coupled with a sale to
.ne borrower of real estate owned by
.I .ae ffuoentlal. Inquiries respecting
'hese transactions having been an
ssWered. Mr.. Untermyer branched out
iltO an examination with respect To
t tne naturalization of che Prudential in
1910 and the practice of the company
~ deposltlng some of its funds in
osAks IN which directors of the com
Pany happened to be stockholders.
At the end of the day Mr.. Inter
myer, with a good deal of flourish.
eaiied upon the superintendent of In
surance Of the State of New York 20
Investigate the Prudential with respect
the matters inquired OF by him and
men adjourned the examination of Mr.
dryden until the 22d inst
LiHdabury Criticises Untermver
VI course the examination of Mr.
pryden went far beyond that permitted
20 Mr.. Untermyer by the Legislature.
ou' IL was thought best not to object
~ II on this account and no objection
"As made. Before the close of the day.
however, the examination became so
etossiy unfair and the inspired ac-
seaats OF 1t which appeared in some
~ sne newspapers on the following day
eie so misleading that it was decided
oy counsel to thereafter confne the
e"ssmlnatlon al within legal limits"
Mr Llndabury then reviewed the ex.
ANIMATION Of Mr.. Dryden on June %.
sao eold Of his refusal to answer GER
DE continued:
The character of the examination
o. o. Mr. Dryden by Mr. Untermyer, and
.ne refusal of the Lockwood commit
zee TO even consider any objection
nShefeto, made it quite clear that the
tslfadential n had nothing to expect from
"a: .ae committee except misrepresenta-
Ion and that its only safety lay in
sanding arag upon its legal rights.
=. The directors. however, arc entitled
% know that there is not one word of
t,utn IN the insinuations of Mr. Unter-
sayer and that Mr.. Dryden did not re-
use to answer his questions for any
psaer reason than the decision to put
stated"
:, II was then pointed out in the report
saat Mr.. Dryden had answered sub
S SssshEially the same questions put by
Mr, gntermyer when they were asked
~ MIN by the New York State Super
'aeendent of Insurance.
S'prs II