Perth Amboy evening news., 1921-10-12
REPORT ON OPERATIONS OF
PRUDENTIAL INSURANCE co.

TNENTON, Oct. 12-That the
Prudential Insurance Company of
this state, placed in New York state
during hte year 1920 investments
totaling ~$1S,9S7,993, which was
$304,107 more than the totai
amount Of business received from
that state and available for this
purpose, was one of the leading find
ings of the five insurance examiners
who have been examining into the
operations of the company as a re-
suit of the work of the Lockwood
Committee of New York.
The report was prepared at the
direction of insurance officials in ac-
cordance with the request Of the
Prudential Insurance Company.
through its board of directors some
time ago to Commissioner futile,
of this state, for an examination of
it's affairs from 1902 to the present
time. The Prudential asked Mr..
futile to invite the insurance COM
m~issioners of all other states in
which the company operates. to as
sist him in making the examination.
In the resolution, passed by the
baord of directors, the Prudential
requested that the examination have
to do with special reference to its
relation to and dealings with the
Fidelity Trust Company, the NUT
ualization of the company in 1915
and any other matter to which at
tention might be called by the Lock-
wood Committee or any policy hold
err of the company.
The Lockwood committee called
the attention of the insurance au-
thorities of New York to testimony
before it tending to show that al
though upwards of % per cent. of
| the poiicyholders of the Prudential
! were located in New York. the COM
\pany had invested only a small
fraction of its vast fund in mort
kages on real estate in that state.
t was also claimed that its invest
ients in other states as compared
18th its premium receipts from those
ates were vastly out of proportion.
Figures quoted by the examiners
today's report show that this con
ption is weakened by the state
mt that of the total business trans
ed by the company almost 81 per
It of il is in the state of New York
4 of the total mortgage loans in
tied in all states, over 10 per cent
been placed in New York. This
IS not include other types of in
Etment which bring New York's
n OAAa4G VI hftNAAANAAN2 A00N1 =
Eurns to the company.
Respecting the question raised
ID looked into by the examiners
wing to do with the relationship
ktween the Prudential and the
fidelity Trust Company, of Newark.
IN which the intimation was made
Of an ~inter-locking ownership Of
stock. the report fails TO find. ac-
cording to the facts submitted. that
such a relationship was ever fully
reached. The report does show, how
ever, that from 1903 to 1914 the
Prudential held "a per cent of the
stock of the Fidelity. and the Ffdel-
ity possessed 1928 per cent of the
stock of the Prudential.
To the question raised by the
Lockwood committee as to whether
officials of the Prudential company
are profting as stockholders in
banks in which the Insurance con
Germ deposits its funds. the report
yoes into comprehensive detail as to
he position of each director and
executive officer on this subject. AL
though no definite conclusion is
stated, the gist of the information
would seem to be that wherever an
official of the insurance concern has
borrowed money from a bank hold
ing Prudential deposits, the official
in each instance has furnished pro-
per collateral.