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 s1S,9S7.99S, which was
$304,107 more than the totai
amount of business received from
that state and available for this
purpose, vas 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
missioners 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
t1atloi W dld NNdAiioo NAAi AAAN
Fidelity Trust Company, the NUT
utilization 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 10. 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
Many had invested only a small
Fraction of its vast fund in mort
g\ages on real estate in that state.
IN was also claimed that its invest
ments in other states as compared
with it's premium receipts from those
states were vastly out of proportion,
Figures quoted by the examiners
in today's report show that this con-
tention is weakened by the state
ment that of the total business trans
acted by the company almost Fl per
cent of it is in the state Of New York
and OF the total mortgage loans in
vested in all states, over 10 per cent
has been placed in New York. This
does not include other types of in
vestment which bring New York's
total share of investments above us
returns to the company.
Respecting the question raised
and looked into by the examiners
having to dc with the Relationship
between the Prudential and the
Fidelity Trust Company, OF Newark
IN which the intimation was made
Of an interviewing ownership oi
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 1898 per cent of the
stock of the Prudential.
To the question raised by tbs
Lockwood committee as to whether
officials of the Prudential compan,
are profting as stockholders Il
banks in which the insurance con
cern deposits its funds, the repor
goes into comprehensive detail as L
he position of each director ant
executive officer on this subject. Al
though no definite conclusion /
stated. the gist of the information
would seem to be that wherever al
official of the insurance concern ha
Borrowed money from a bank hold
ing Prudential deposits. the oficia
in each instance has furnished pro
per collateral.