New-York tribune., 1921-06-22
Dauglnerty Will
Speed Housing.
Combine rials
To Ask $25O,OOO of Con.
gress for Prosecution of
I,50O Cases Revealed by
Lockwood Investigation
Aids Consult Untermyer
Prudential Co. Officers Tell
Insurance Head Of Hold
ings in Associated Banks

The Department of Justice plans to
ask Congress for an immediate aprro-
priation of $250,0oo for the purpose of
pressing the prosecutions of more than
1,50o individuals and corporations said
to be involved in the nationwide COM
bination exposed during the Lockwood
committees investigation of the hous-
ing situation.
The step was decided upon following
q conference yesterday of First Assist
ant United States Attorney General
Guy Goff, United States Attorney Hay
ward and Samuel Untermyer chief
counsel to the Lockwood committee, III
. connection with the proposed govern
ment drive against the combines.
Attorney General Daugherty an
nounced at Washington that the
Federal authorities already had worked
up case against one of the price-fx-
Lockwood committee. He said that
suit would be filed by the government
against the association within few
days. Mr.. Daugherty did not make
public the name Of the organization.
1t is believed, however, to be none
other than the cement group, which
has been indicted for alleged viola
tions of the Sherman antitrust law
The Attorney General declared that q
restraining order would be asked re-
quiring the organization to desist from
its unlawful practices.
PhiIIins Questions Dryde,
Another development of the commit
tees activities was the examination of
Forrest f. Dryden, president, and other
officials of the Prudential Insurance
Company by Jesse S. Phillips, State
superintendent of Insurance, at 1865
Broadway, in accordance with request
of the committee. AS a result of the
testimony of Mr.. Dryden and other
company heads, Mr.. Untermyer charged
in letter to the superintendent that
the naturalization of the. company was
not genuine, and asked that its opera
tions be investigated.
The committees counsel also re-
quested the insurance department to
obtain the holdings of Mr.. Dryden and
other officials of the Prudential in the
banks and trust companies in which the
Prudential carries large deposits. This
information was obtained in the course
of yesterdays examination. 1t will be
turned over to Mr.. Untermyer this
morning and Mr.. Dryden probably ex-
amined in connection Herewith.
1t was learned that the committees
chief counsel was thoroughly satisfied
as result of his conference with the
Federal authorities that the Attorney
General was in earnest and that if
supplied with the necessary funds by
Congress would push the prosecutions
to finish.
Big Combines To Be Tried
The list of prospective defendants
1ncludes some Of the largest manufac-
eturers, jobbers and dealers in cement,
iron erecting materials, marble and
other building supplies. All the evi-
dence gathered by the Lockwood COM
mittee in connection with these organi-
cations indicating violations of the
antitrust laws has been turned over to
Colonel Hayward.
The examination of the Prudential
officials was attended by Henry Mayer,
an associate counsel for the Lockwood
committee in connection with insurance
affairs. There was tilt during the
morning session between Edward D.
Duffeld, vice-president and associate
general counsel for the company, and
Mr.. Mayer, when the latter intimated
that the Prudential is not now wholly
mutualized and that the policy holders
stock is really controlled by a minor
ity Of which Mr.. Dryden Is the head.
Mr.. Dufield replied with some heat
that 1T was unfair to the company and
unjust and untrue" to infer "that a
fraud was committed or intended when
the company was mutualized."
F. A. Boyle, vice-president and treas
urer, offered some statistics of the
company and then Mr.. Dryden told
of the holdings of himself and other
directors of the company in certain of
the banks in which the Prudential car
ries large deposits. Much of this testi-
mony already has been put in evidence
before the committee.
Mr.. Dryden and all except four of
the directors of the Prudential admit
ted holding stock in the following
banks which are repositories of their
company: The Fidelity Union Trust
Company, Columbia Trust Company,
National Bank of Commerce, Trust
Company of New Jersey, National New
ark g. Essex Banking Company, Chase
National Bank, Union National Bank
Mercantile Trust Company, Merchants
and Manufacturers Bank of Newark
Irvington National Bank of New Jer-
sey, Trenton Banking Company, Me-
chanics' National Bank of Trenton,
Orange National Bank, Ocean County
Trust Company and the Newton Trust
Company None of the directors, how
ever. had stock in all of these banks.
From the six banks in which he was
Interested, Mr.. Dryden said, he drew a
last quarterly dividend of $10,024, and
that IT the average dividend continues
for the year he will receive a total OF
$4O,o96. Among the directors of the
Prudential interested in some of the
banks named are James S. Alexander
G. A. Austin, Howard Bayne, F. A
Boyke, John A. Campbell, William t
garter, Samuel S. Dennis, Edward
Gray, DR.. Edward j. III, William S
Johnson, Edward Kanouse and Bennett
Van Syckle.
The. Lockwood hearings will be re-
sumed in City Hall this morning and
VIII continue over tomorrow, The
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