The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-29
CHARGES FORGERY
IN THIRD DEGREE
Jury Indicts Perkins, Former
President New York Life
PRUSSIAN LOAN MATTER
Indictments Also Against Charles Fair
child, Member of Finance Commit
tee-Jurors Believe Acts Were
for Benefit of PoIicyholders.

| New York, December 2S.-The grand
jury which for the past month has been
investigating the affairs of the New York
life insurance companies. today returned
indictments charging forgery in the third
degree against George w. Perkins, former
vice-president of the New York Life, and
member of the firm of j. p. Morgan &
Co.. and Charles Fairchild, former secre-
taIy of the treasury, president of the
New York Security and Trust company
now out of existence) and a member
of the finance committee of the insurance
| company.
Mr.. Perkins was in court when the In
dictments were announced. He was for
mally arraigned. entered a plea of not
guilty, and gave bond in the sum of $4,000,
his sureties being J. P. Morgan, Jr, and
Cleveland H. Dodge.
Mr. Fairchild is in Europe
Six Indictments.
Six indictments were returned against
each of the two defendants, but all are
based on the one transaction known as
the "Prussian loan." the specification I'M
der the charge of forgery being the fall
sification In bookkeeping entries. 1t is
| alleged that certain railway stocks were
transferred by the Insurance company
to the Security and Trust company in
order to comply with the Prussian law,
but the transfer was not bona fde.
The grand jury coupled with the In
dlctments a presentment which the jurors
placed themselves on record as being con-
vinced that in doing the acts charged
against them, Messrs. Perkins and Fair
child were Influenced by desire to
benefit the polcyholders."
The grand jury further says the indict-
| ments We're returned only under a strict
Interpretation of the law as 1t was laid
down to them by District Attorney Je-
rome. The statement in full as it was
presented to Recorder Golf follows:
Jury Statement
The grand jury respectfully presents
that in filing a bill of Indictment against
two persons for offense committed in con-
nection with the affairs of the New York
! Life Insurance company, that accepting
the law of these cases as advised by the
| district attorney. they felt constrained to
| find the indictments today. The grand
| jury, however, desire recorded their con-
vction that in doing the acts charged,
the defendants Were prompted by a de-
| sire to benefit the policyholuers of the
New York Life Insurance company; that
the defendants themselves neither did nor
could in any way. personally profit by the
acts done and that the evidence conclu-
slvely shows that a large pecuniary ben
eft was derived by the policyholders as
! a consequence of these acts"
This statement was an official confirm
alton of the reports which had spread
about the criminal court building. where
the jury was in session to the effect that
the Jurors were not at all convinced by
the evidence placed before them that a
crime had been committed in the so-caled
"Prussan Loan transaction. The matter
was pressed by Mr.. Jerome.
Jerome Argues.
Mr.. Jerome has appeared before the
grand jury on a number of occasions
and made several lengthy arguments. Mr..
Jerome was with the jury until late yes
! terday evening, and again early today
When Mr. Perkins was asked tonight
whether he cared to make any statement
regarding the action of the grand Jury,
he replied:
mo, sir; I am more concerned tonight
over the death of President Cassatt of
the Pennsylvania railroad than with any
personal affair The country has lost a
great public servant who devoted a busy
and trying life to the unselfsh work of
upbuilding for the public benefit our great
railroad. He died of a broken heart. a
heart broken by the constant bounding
| of iconoclasts."