The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-12-29
INSURANCE MEN
ARE INDICTED
George w. Perkins, Partner ]. -.
Morgan, and Charles S. Fair
child, Charged with Forgery.
PERKINS QUICKLY gAILED
iairchild in Europe-Thc Charge
is Forgery Touching the
Prussian Loan.

NEW YORK. December .s-rse GRAND
jury. which for the past month has been
Investigating the affairs OF tae Sew york
Life Insurance Company. to-day returned
Indictments. charging forgery iu th, third
degree against George w Perkins. former
Ni'e-president Of the New York Life and
n member OF the firm OF j. -. Morgan q
/ Co.. ana Charles S. Fairelld. n former
Secretary OF the Treasurv. president OF
the New York Security and Trust COM
pauy now ont Of existence. and raem-
Der of the finance committee OF The lnsrr-
ance company.
Mr.. Perkins was in court whom tho ir,-
dietments were announced. He was for-
maliy arraigned. entered plea Of not
guilty. and gave bond in tire sum OF
80 %. his suretes being i -. Morgan.
jr.. who pledged a city residence valued
go 10000. and Cleveland II. Dodge. who
pledged unimproved city property. valued
at $4,000. Air. Fairchiid is at present in
Europe. The court assured Mr.. Perkins
that double surety was not rec-
essary. but he replied that he preferred
IL that way.
each of the two defendants but aI are
based on the one transaction. known as
the "Prussian loan.T the specification uu-
der the charge of forgery being the falsi-
tcauon OF bookkeeping entries. IL is AL
legged that certain railroad stocks were
transferred Boy tho insurance company 10
/ the Security and Trust Company in orlAr
90 comply with the FrGssiau law but
that the transfer was not bona fde.
Helped Policyholders.
The grand jury. coupled with the indict-
mcnts q prcsentment ga which the jurors
placed themselves on record as being
convinced that iu doing tho acts charged
.r...a 81
child wore Influenced hy q desire to
/ benefit the poiicy-holders Tie grand jury
further says the Indictments were re-
turned only under "a strict Interpretation
of the law as it was laid down Co them
by District Attorney Jerome.
The statement. as &c was presented TO
Recorder Goff. was an official condrrna-
ton of the reports which had spread
about the Criminal Courts building. where
the grand jury was in session. 90 the effect
that the jurors were not az an convinced
Dy the evidence placed before them that
a crime had been committed I'm the So
! called "Prussian loan" transaction The
matter was pressed hy Mr.. Jerome how
| ever. who appeared before the grand jury
| on number OF occasions and made
| several lengthy arguments. Mr.. Jerome
was with the jury until late Yesterday
/ evening and again early TODAY
Il had been an open secret for two DAYS
| that Afr. Perkins would probably be sn-
| dicted. but the indictment Of Mr.. Fair
! child came ss q complete surprise. for ne
| had not been publicly connected with the
present investigation
Prussian Loan.
The .Prussian loan matter was deyel-
! oped during the Armstrong investigation.
| Some years ago the Prussian government
adopted "a law which excluded all Amorl-
can insurance companies from doing busi-
ness in that country. The American life
insurance companies were doing an extern
| slvc business I'm Prussia at the time and
tha law was a severe blow They AT onca
made an effort to re-establish themselves
| hy complying with the new law As
result or their efforts "a Prussian commits
sion was appointed and cama In this
country To Investigate the various com
| panies wishing 70 resume business in
Prussia Among these was the New York
! Lie. The commission returned II prrs-
STA with the recommendation that the
companies be again permitted TO write
/ insurance upon compliance with the de-
/ mand that they should sell any and an
] stocks held hy them as securities being a
! fundamental principle and theory Of Prls-
] sian law that no insurance cornpanv
/ should accept or hold as collateral any
/ stock. no matter how we'll it might be
| secured.
] Only bonds were permissible. To nicer
/ this demand the New York Life agreed
/ 90 sell 10000 shares OF Chicago and North
( western preferred and $500 shares OF Chi
/ cago. Milwaukee and ST. Paul preferred
/ which it held. IL is now charged that
/ instead OF selling this stock outright. the
/ company merely transferred it TO the
/ New York Security and Trust Company.
/ q subsidiary concern. where 10 was held
/ In trust. not beinN actually disposed OF
| until about one year later. when Il was
] sold on the stock exchange at profit
| TO the company OF Sl55O0O