New-York tribune., 1921-06-23
Dryden Held i'm
Contempt Four
Times by Board
President of Prudential
Life Refuses to Answer
Questions II gard in g
Deals in New Jersey
Attorney Prompts Him
Untermyer and Opposing
Counsel in Frequent
Clashes Over Witness

Forrest F. Dryden, president Of the
Prudential Insurance Company, was
adjudged in contempt four times yes
terday during the Lockwood Commit
tees investigation into the financial
affairs of the concern. He was cited
for his refusal to answer questions of
Samuel Untermyer, the committee s
chief counsel, touching on deals be-
tween the Prudential and the Fidelity
Union Trust Company of New Jersey,
and some other financial points.
The session was marked by repeated
clashes between Mr.. Untermyer and R.
V. Lindabury counsel for MIR. Dryden,
resulting from Mr. Lindabury's at
tempts to advise his client on the
times threatened with election from
the hearing room if he did not cease
his Interruptions. He continued to
advise Mr.. Dryden, however, all through
| the session, and it was in accordance
with his advice that Mr.. Dryden de-
clined to answer certain Of Mr.. Inter
myers questions.
Lindabury Stands by Client
Asked by Mr.. Untermyer if he was
going to stand by his clients refusal
to answer the questions, Mr.. Lindabury
said he was.
"Then you know what I'll do, don't
you?" replied Mr.. Untermyer. "Il
treat him like any other contemptuous
witness"
GAIL right, do that" replied Mr.
Lindabury.
Under the rcur1stances the com
| mittee may have Nj. Dryden indicted
by grand jury for contempt or he
may be hailed before a justice Of the
Supreme Court on motion of the COM
mittee's counsel. 1t was pointed out
there are no grand juries sitting dur
ing the summer and that if immediate
action is decided upon by the commit
tee it will have to resort to the Su
preme Court.
1t was developed at the hearing
through statistics gathered by the
committee through questonnaires and
tutions Of the country, including 150
| insurance companies, banks and trust
comp mpanes, that the income return of
| these institutions was ! per cent great
er en- real estate mortgages than from
stock and bond investments. The in
come returns from mortgages averaged
8 per cent, from stocks about A pei
cent.
1t is on the basis of this information
it was intimated, that legislation would
be suggested to the Legislature COM
| pelling insurance companies to invest
a certain proportion Of their funds in
real estate mortgages. If this can be
effected it was declared that between
six hundred to seven hundred millions
of dollars will be thrown into the loan
market, creating tremendous stimu-
lus to building.
Questioned on Stock Purchase
Mr. Untermyer tried to get from Mr.
Dryden the details and circum stance
surrounding the purchase by the Fidel-
ity Trust Company 'in 1902 Of 19999
shares of Prudential stock Mr.. DRYDEN
admitted having been q director in
both companies at the time Mr.. Inter
myer also brought out that these shares
were only eight less than the number
required for the control Of the Pru.
dential's affairs. Mr. Untermve,
pointed out IN this connection that fbe
total deposits in the Fidelity at the
time were $S,S13,OO0, and asked NJ
Dryden how the concern was able r.
pay S6,000,000 for the Prudential stock
1T was this question which MIR. Dryder
said he refused to answer on advice al
counsel.
Have you no other grounds? THAI
ls not suihclent," remarked Mr.. Un
termyer.
at is sufficient for me-" replied Mr.
Dryden.
Mr.. Untermyer here asked Assembly
Continued on page ffieen)