The New York herald., 1921-06-09

the naturalization OF the company which
pi divided that directors did not need
stock to qualify, applied when there was
any other stock outstanding. From this
IL was further developed that $500 ad-
ditional shares OF the old stock are stu
held by L. F. and Milburne Blanchard
OF Newark. despite the fact that by
turning them in they could realize Sl4O'-
600. the income of which was estimated
at SS.400.
Sees idea i'm Holding Old stock.
BY holding the stock the annual in
come amounts. with the legal restriction
OF 10 per cent. to only si,4oo. Mr..
Untermyer asked the witness If II was
not fact that the Blanchard stock has
never been voted at any stockholders
meeting since naturalization OF the conf
| pany. He left the inference unmistak-
able that the stock was held in behalf
of the company for purposes OF contro'
| in the event OF the naturalization OF the
concern being successfully attacked In
the courts
Mr. Dryden admitted that he had from
| time to time sold small blocks OF stock
TO men taking places on the directorate
OF the company, including the late Moses
| Tyler Pyne. Mr. Untefmyer asked the
witness II he would produce his private
accounts to show what was paid for this
stock, but on the advice of Mr.. Linda
bury, who rose to his feet at the qucs-
| ton. and participated for the first time
| in the examination, Mr.. Dryden refused
| to do so.
Mr.. Untermyer then led the witness
| over the committees record of invest
ments in stocks, bonds and mortgages
| for the period between 1906 and 1919,
leading up TO an expression of opinion
| on the wisdom OF prohibiting invest
ments in stock companies. Mr.. Dryden
said it was his opinion that 1t would be
safe to remove the limitation that now
prevents such investments by life insur-
ance companies.
O. You think, then, you would like TO
be able to go with this 100000. 900 in
the market and buy stocks, do you? A.
| No. sir; i do not
what He Would DO I'm Market.
Q. How much would you like TO go in
l'the market with? A. A very small pro-
portion.
@. What proportion? A l do not think
over 10 per sent
O. That is good deal OF money.
That is $40, 100000. isn't 1t? A. Well
Q. But you think you would like to be
able to take $70.000.O00 and go into the
market and take advantage of tempo
rary market conditions and buy COM
mon stocks do you? Is that your idea
A. No; do not think it is. Mr.. Inter
myer.
Q. Well. you have said 1t was. A
Yes. l did.
O. Do you want to withdraw that? A.
I will withdraw that statement.
c. What proportion of your $780,
600 900 of assets do you think you
should have the right to put into COM
mon stocks on the market when con-
ditions warrant IL? a. l said 10 per
cent before. until 1 realized when you
brought it to my attention II was $780,
0O0, 900 i think that is too large.
O. Now you would like TO reduce itg
A. Yes.
O. How much would you like to re-
duce II? A. l should think $1o,0O0,000
would be a limit.
@. 100000 900 out of $500. 100000 a.
| Yes; ten or fifteen.
O. That is only u per cent? A. Yes.
Secretary shows Books.
Willard l. Hamilton, secretary OF the
Prudential. was called TO snow the ex-
tent of participation IN the company $
affairs enjoyed by the policy holders,
He brought the minutes OF the annual
meetings beginning with that OF Decem-
ber, 1915, when naturalization took
place. On that occasion there were ap-
proximately $4,000 proxies registered,
made out to members of the old board
of directors, representing approximately
is, ,ooo, 900 policy holders. Forty-nine
policy holders were present In person.
From that time on. the record showed
the extent of participation gradually
grew less, until in December, 1920.
there were approximately 1000 proxies
registered hut no policy holders at all
at the meeting. The year before. It ap-
peared. one policy holder. p. j. Lang,
nut In an appearance and asked for n
i division among policy holders OF the
companys surplus, but didn't get any
action.
i Taurus p Sutton. comptroller of the
Brooklyn Savings Bank, and Philip A.
| Henson, secretary Of the Dime Savings
Bank of Brooklyn, were called TO ex-
plain their published denials that their
institutions had at various times COM
PEELED borrowers or mortgage loans 10
accept Liberty or Victory bonds at par
| or take real estate tney dlun want
Mr.. Sutton maintained steadfastly that
J the transactions of his institution under
Investigation were separate, that no CO.
erclon or compulsion had been exercised
and that in several cases the borrower
sfterward got rid of the poperty In
question at n profit.
But both he and Mr.. Benson admitted
when pressed by Mr. Untermyer that
those were the only conditions upon
which the loans would be made. For
the purposes OF the record Mr.. Unter-
nyer went over several OF these trans
actions. the details OF which already
have been revealed IN THE NEW YORK
HERALD.
Buying Forced ON borrowers.
, George w. Cummings. vice-presfden'
: Of the United States Title Guaranty
, Company. was moro frank witness
He admitted freely that the practice oi
+. compelling borrowers 10 ACCEPT these con-
J ditions had become pretty general dur
ing the last few years.
AT the beginning OF yesterdays scs'
sion Mr.. Untermyer made forrna
statement an a result of story In q
: morning Newspaper yesterday to the ef-
feet that the investigation Of the fire
: insurance companies had been suddenly
| roY,nnrou1iqe arrived M