The Washington herald., 1906-12-21
PERKINS UNDER FIRE
MOrgan's Business Partner
Witness forNew York Life.
JEROME PROBING ITS AFFAIRS
Seeks Evidence for Alleged Sale of
Stock to which Prussinn Govern
ment Objected-Three New York
Companies VIII in Future Write
Only Nonparticipating Insurance.

New York, Dec. 20.-After having been
sworn before the grand jury and waiting
several hours in the anteroom of the
Criminal Courts building. George D.
Perkins. business partner of J. Pierpont
Morgan and formerly vice president OF
the New York Life Insurance Company.
was called this afternoon as a witness I'm
the investigation District Attorney Jerome
is making into the affairs Of the big in
surance concern. Mr.. Perkins was once
indicted, but subsequently released, on
charges evolving out Of the insurance in
curry.
B. Klndley. vice president of the New
York Life, was examined at length by
the grand jury before Mr.. Perkins was
called. lie was asked about the PTus-
sian deal. The company, as the price OF
continuing to do business in Prussia, was
compelled to charge off three blocks Of
stocks and industTials, which were not
acceptable to the Prussian officials.
No Bona Eide Sale Made.
The report sheet for the year fled with
the insurance department Of this State
showed that these blocks of stock had
been sold to the New York Security and
Trust Company, subsidiary concern of
the life insurance company. for the sum
of 50, SOC. 000. 1t is alleged that there was
never a bona fde sale, and that the sale
was put through by utilizing a negro
porter and NJ N. Mattison. chief clerk
to the treasurer. Edmund D. Randolph,
the insurance company taking notes of
the stock
As result of a conference between
Foreman Hyde, of the grand jury, Re
corder Go1, and District Attorney Je-
rome. some OF the gambling cases and
election cases We're given precedence of
the insurance investigation at the morn
ing session.
When it was found that Mr.. Perkins
would not be reached early in the fore
noon he was permitted TO SO from the
anteroom of the grand jury room TO tbs
office of Assistant District Attorney
Kresel. where he talked with Edmund
D. Randolph. treasurer of the New York
Life. and his counsel Lewis l. Della
field. He stroned about the corridor and
did not seem TO attract any attention.
But when he was told that he would have
TO return he did not seem at all pleased
Change to Mutual Plan.
It was announced to-day that after
January / three Of the big stock life in.
suranee companies that have been OPP
Grating on part mutual plan viii IN the
future write only noEparticipating in
surance.
The Armstrong law that goes into ef-
feet on the first of the year prohibits
the writing of both participating and
Notwithstanding policies. and, therefore,
neCessitates choice between the two.
The three companies are the Washing
ton Life. the United States Life, and the
Provident Savings Life
The hearing on the application of coun-
sci for George Durham. jr.. for the is
suance-af a certificate of reasonable doubt
IS TO the legality of Burnham's convic-
ton, was adjourned to-day, by consent
of counsel, until 1880 o'clock tomorrow
morning. Justice O'Gorman will hear
the application in the Supreme Court.