The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1906-12-29
MEssRs. FAlRcAlLD AND PER.
klNS OF NEW YORK LIFE IN
DICTED BY GRAND JURY.
Tx TRUE BILLS AGAINST EACH Man
ACTION BASED ON THE ALLEGED
"DUMMY" SALE OF CERTAIN
RAILROAD SECURITIES.

NSW 10TH, DeC. IS.-ISOTSS w. TcT.
kins, formerly vice president of the
New York Life Insurance company
and now member OF the firm of j.
p. Morgan & Co., and Charles S. Fair
child, formerly secretary of the treas
ury and a trustee of the New York
Life Insurance company, were indicted
during the day by the grand jury
charged with forgery.
The indictments are based on what
are known as the Prussian bond trans
action, in which it is charged that 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 COM
pany.
The indictments were reported to
Recorder Colt while another case was
being heard by him. This hearing
was suspended while the recorder
listened to the report of the grand
jury. The jury reported six indict,
ments against each of the accused
men. ~.
George w. Perkins appeared in
court and gave bail in the sum Of &c..
900. Mr.. Fairchild is in Europe.
Dummy Sale Of Railroad Stock.
One of the transactions investigated
by the grand jury is what was alleged
to be dummy sale of 10000 shares
of Chicago and Northwestern pre-
ferred stock and $500 shares of ST.
Paul stock to the New York Security
and Trust company. As far as ap
peared on the books of the New York
Life Insurance company this transac
ton was a complete sale of the securi
ties. The New York Security and
Trust company, however, recorded II
as q loan. Later these shares were
sold by the New York Security and
Trust company with profit to the
This alleged false statement Of sale
had for it's object compliance with the
rules Of the Prussian government that
a life insurance company doing bust
ness in that country shall not include
corporation stocks in its assets; but
may include bonds in such assets.
The grand jury's investigation of the
affairs OF the New York Life Insur
ance company, which resulted in the
indictments just returned, was a di
rect outgrowth Of the investigation OF
the insurance companies by legis
1afiuo onnonniftoo uoor
Did Not Profit by Transaction.
Accompanying the indictments was
the following statement:
"The grand jury respectfully pre-
sents that in filing a bill of indictment
against two persons for offenses com
mitted in connection with the affairs
of the New York Life Insurance com
pany that, accepting the law of these
cases as advised by the district attor
ney, they felt constrained to find the
indictment this day filed. The grand
jurors, however, desire to record theil
conviction that in doing the acts
charged the defendants were influ
enced by desire to benefit the policy
holders of the New York Life Insur
ance company; that the defendants
themselves neither did nor could In
any way personally profit from the
acts done and that the evidence con
cluslvely showed that large pecuni
airy benefit was derived by the policy
holders as a consequence of these
acts" 49,.
When Mr.. Perkins was arraigned IN
the court Of general sessions he en-
tered a plea of not guilty to the indict
ments, reserving the right to with
draw the plea at later date. He was
given until Jan. Fl to file demurrers