The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-12-29
NEW YORK JURY
AFTER BIG GAME
EX.SEcRETARY OF U. S. TREh2-
URY, cHAS. S. FA!RCHIt-D,
CHARGED WITH FORGERY.
ALSO GEO. W. PERKINS
OF j. p Morgan G co.-sixirdictmen
Against Each in Connection VIII
~ Y, Life Insurance Co.'S
Affairs.


New Yclh, Dec %. The grand lury
which for the past month has beon
Investigating the affairs eI the New
York Life Insurance company, today
returned indictments charging forgery
n he third degree agains George w.
Perkins, former vice president Of the
New York Life and a mo,nber cf the
firm oe j p Morgan and Company,
and Charles S Fairchild former sec
retary of the treasury president Gf
the New York Secetity Company.
now out Of eHistencel and member
of the finance committees Of he III
surance company. Perkins was in
court when the indie ments we're an
n0u ced He was formally aralgnci,
entered a plea of not guilty and gave
bond in the sum $4,000 his sure
ties being ] P.erpont Morgan, Jra
who pledged his city residence val
ued at 100000, and Cleveland II.
Dodge, who pledged unimproved prop
erty valued at $4,000 Fairchild is at
present in Europe The court assured
MI Perkins that double surrey was
not necessary. but he relied he pre-
ferred il that way.
Six indictments Were returned
against each of the two defendants,
but ell are based on the one transac-
tion known as "Prussian Loans the
specification under the charge oi Tor
gerry beng Justification Of book keep.
ing entries. 1t is alleged that Ger
tain railway stocks were transferred
by the Insurance company to the Sc
curlty and Trust company, in order to
comply with the Prussiau law, but
that the transfer was not bonaiide
The grand jury coupled with the in
dictments a. a presentment in which
the jurors placed themselves ON rec
ord as beirg convinced that in doing
the acts charged against them, Per
kins and Fairchild We're influenced
by the desire to benefit policy hold
ers." The grand jury further says
"The indictments were returned only
under strict Interpretation of the
law as laid down to them by District
Attorney Jerome
"The Prussan Loans matter was
developed duriGg the Armstrong in
yestigaton. Some years ago the Prus
sian government adopted law which
excluded American insurance com
panies from doing business in that
country. i
American life insurance. companies
were doing an extensive bus.ne S in
Prussia a. the time and the law was
a serious blow TO them They a
once made an effort TO re-es, ablisn /
themselves by complying with the |
new law. As a result Of their efforts /
The Prussian commission was ap /
pointed and came to this country to 4
investigate various companies wish 1
ing to resume bu mess in Prussia /
Among these was the New York Life /
The commission returned TO Prussia /
with tho recommendation that the /
l'DIlDdu Is lt dEtlH p'l llllhl''h w. /
vite insurance upon compliance with |
he demand thai they should sell any !
and an stocks held by them as secur- /
ties, II being a fundamental principal /
and theory of the Prus ian law that /
40 insurance company should accep, /
,r hold as collateral any stock, no
natter haw well it might be secured. /
Only bonds were permissible. To I
meet this demand the New York Life /
lgreed 10 sell 10000 shares Of North
western preferred and 5000 shares of
St. Paul preferred VII ch H. held. r !
S now charged that instead of .elling
he stoct on right tho company mere
Y transferred it % the New York So
rur.ty and Trust Company. sub
sidiary concern where il was held in
rust not being actually disposed Of
Until about one year later when 2
Vas sold a profit TO the company OF
,155.000. The Northwestern brought
profit f $3.50 900 while the s.. Paul
a eU- UUN