New-York tribune., 1921-06-09
Concerns Officials Shown
to Hold Stock in Tnstitu-
tons Where Insurance
Funds Were Deposited
No Relief Given
Housing Shortage
Onlys1, 1000, 900 forReal-
ty Loans; Investment in
State Found Trivial

The financial operations of the Pru-
Dental Life Insurance Company Of
Newark, n. j., and their bearings on
the housing situation were the subjects
of some startling revelations at yester-
davis session of the Lockwood commit
tee in City Hail.
Through Forrest F. Dryden, presi-
DENT of the Prudential, Samuel Inter
myer, chief counsel to the committee,
developed that the company had sub
stantial deposits in financial institu-
tions in which Mr.. Dryden and other
officials Of the Prudential were inter
ested either as stockholders or officers.
First Inquiry into Company
AS Mr.. Untermyer began to dig deep
into the affairs of this insurance com
pany it was recalled that it had never
before been subjected to extensive at
tention, the Armstrong investigation,
With Charles Evans Hughes as the ex-
aminer, having barely touched upon
The company's affairs.
In the course of Mr.. Dryden's testi-
nony it was shown that while % per
cent of the company's s5,0o0,0o 900
business was done in the State of New
York. only 1852 per cent of the Pru-
dential's assets were invested here.
Mr.. Unternlyer concluded his examina-
ton of Mr.. Dryden with an appeal that
the insurance president use his i'm
mense power to have an appreciable
portion OF the $700 900, 900 assets of the
company set aside for the relief of the
housing shortage.
Mr.. Untermyer also took whack at
q morning newspaper which had le-
Ierred to some arrangements concern
ing criminal proceedings in connection
with the ire insurance investigation
Sir. Cntermyer declared there was no
Understanding whatever On the subject.
81 am frank to say, however," he
said, ln2t II the alternative rested
wi,u me to decide between securing
im-aec ciately the sweeping reforms that
hags Aow been agreed to and that will
break up thls oppr sssige monopolv. re-
syere competition and save one
haoqfe4 ana twerty millions a wear to
Tie people Of the United States. and to
prosecute these men, which, after
nj yAths OF labor and great expense to
the state, would result in their being,
pe hdps, ratted Oh the wrist and
ilned some insignificant sum if con-
,flcll n were secured, | would regard
tht former policy as preferable.
No No.l-Prosecution Agreement
There is no agreement or under
standing not TO prosecute. The record
is made 1t IS available to the officia :
OF the state and country No limitation
hq r1in TLai,
thing We have said or done. but until
Judges who are insuficicntly informed
Of tie acts and who apparently. do
not realize the far-reaching effects NJ
their action can be prevented from
making a farce of the administration
OF justice in this class of cases pre-
Ter that some one else undertake the
thankess job of bringing certain
e.assas of wealthy lavSreakers to the
oar of justice, only to witness ones
efforts wasted, and class hatred fo-
monted by the belief that there is one
lew for the rich and another for the
poor
Taurus 2. Sutton, comptroller of the
brooklyn Savings Bank; George w.
cummings. vlce-president Of the Title
Guarantee Company of Brooklyn, and
Fhl!Io a. Benson, secre tary of the Dime
oaW~gs Bank of Brooklyn, offered addi-
Aonai testimony of builders being re-
qaifed to take properties and Liberty
ponds selling below par as part Of
loans. The witnesses cited eighty-eight
such transactions.
Mr. Dryden testified that as presi-
oent OF the Prudential he received a
saiary OF $4,000 year. He said he
was also a director of The American
insurance Company of Newark, in the
United States Casualty Company. the
p pank Of Commerce. the Fidelity Union
nsnk and the Public Service Corpora
ion OF New Jersey.
mere Mr.. Untermyer developed that
le fldehtX Unlon, a merger of the
Continued on paaa eirhtl