Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-12-28
Ex.Vioe President of N. Y. Life
And Member Of Firm Of J.
Pierpont Morgan & Co.
ALSO CHARLES S. FAIRCHlLD.
Is Ex-Secretary Of the U. S.
Treasury and a Trustee Of
The New York Life Co.
Both Arc Charged With Forgery In the
Third Degrcc--Bascd on Prus-
sian Bond Deal.

New York Dec. 2S.--George w. Per-
kins, formerly vice president of the
New York Life Insurance company,
and now a member Of the firm OF j.
Pierpont Morgan g. Co., pnd Charles ).
Fairchlld, formerly secretary Of the
treasury. and trustee OF the New
York Life Insurance company, were
indicted today by the grand jury
charged with forgery in the third de-
gree. The Indictments we're based on
what is known as the Prussian bono
transaction ia which IT is charged tnat
a false statement was made by the
New York Life Insurance company IN
order to satisfy the government OF
Prussia as to the securities held by
that company.
Mr.. Perkins appeared in court an1
gave bail in the sum OF Slo'VoO' MT
Falrchld Is in Europe.
One OF the transactions investigated
by the grand jury in this connection
ana the ono on which the indict-
ments were found was whaI
was alleged to be a dummy SAFE OIL
10000 shares OF Chicago & Northwest
ern MD. stock and the $500 shares OF
st. Paul stock to the New YORK seeur-
,tv and Trust company, AS far as APP
pearod on the books OF the New ioFN
life company. this transaction was
complete sale of the securities ih'
New York Security and Trust COM
Many however recorded 1t as loan
Ia+ar these shares were sold by the
New York Security and Trust COM
pany at a profit to the life insurance
company Of sl55,ooO. This alleged ta'se
statement OF sale had for its OBJECT
compliance with the rules of the rruS-
s,an government that life Insurance.
compay doing business IN Una. ~ -,
try shall not Include corpuia.,JJ,
| stocks In It's assets but may inoiuu'
bonds In such assets H.. nj
The grand jurys investigator ~
the affairs Of the New fork ~" - a,
surance company whlch Iesu'.oN -
the indictments returned TO-DAY, wa
an onterowth OF the investigation OF
the insurance companies by ies's'"
tive committee year ago
So voluminous was the testimony
taken by the legislative committe'
that DIST Atty Jerome was occupied
for months In examining H. Georg'
w perkins a former vice presldeh
nf the company, and memper %
ono az the most influential hnancia
arn,s in the world, was arrested on
techniosl charge of larceny but tina
The nroceedings were clearly n tes
case was shown when II was permit
tea IN 90 to the highest court in IN
state without any opposition from IN
accused. 49,, =.
The pressure upon Dist. Atty. Je
rome 10 proceed against high Oh
dciais increased rather than diminish
ed as time went on. During IN
snrlng months the public demand
for action was reinforced by Justc
o'Sulliyan, of the court OF genera
sessions, who in sensational charg
TO a grand jury directed them 10 TAX
up and investigate insurance matter
with the assistance OF the district AT
torney II he chose to give them as
sistance, or without II II he ala ho'
The question WAS considered to som
| extent DY AllbA JhiA 49,
conclusion was reached and the WorI
they had begun was left unflnishe
when they were dismissed on tn
request Of the district attorney spe
cial grand jury was next drawn TO
the sole purpose OF taking u
the insurance companies IN
real activity, however, began only
few weeks ago after the conviction o
George w. Burnham, Jro general eoun
sci for the Mutual Reserve Life lnsur
ance company on a charge OF forgery
The Indictment OF Burnham and wv
other high officials Of the Mutual Re
serve had followed the insurance IN
vestigaton. The verdict against Burn
ham convinced Mr.. Jerome, so he late
announced, that there might be ground
upon which he could proceed asains
the officials Of the New York Life. A
a result the matter was once NOR
placed before the grand jury and wa
pressed vigorously.
Among the present and for
mer New York Life msuranc
officials who have been exam
lned by the grand jury are Geore