The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-28
TWO TO BE INDICTED
Jerome Draws Up Paper for
New York Life Men.
FORGERY MAY BE THE CHARGE
No Attempt to Fasten the Crime of
Larceny on Former Oficers-SOme
Grand Jurors Argued officials of
Company Had Not Profted-CharIeS
:. Fairchild Drawn In.

New York. Dec. 27-As a result OF the
grand jurys investigation of the manage
ment of the New York Life Insurance
Company, which was practically COM
pleted this afternoon. indictments viii
be fled tomorrow against two men. At
least Ihat was the prediction tonight,
and everything around the district at
torneys Office indicates that the indict-
ments were being drawn.
one of the transactions gone into by
the grand jury was the dummy sale Of
10000 shares Of the Chicago and North
western Railroad preferred and $500
shares Of the Chicago. Milwaukee and ST.
Paul TO the New York Security and Trust
Company, Of which Charles S. Fairchild,
formerly Secretary of the Treasury, was
president.
On the books of the New York Life it
was put down as bona fide sale. On
the books of the New York Security and
Trust Company IL was recorded as a loan.
The security company was a subsidiary
of the New York Life.
Assistant District Attorney Perkins,
who is in charge OF the grand jury, and
who is Mr.. Jeromes expert on drawing
indictments. went into conference with
Assistant District Attorney KreseI imme-
diately the grand jury adjourned Mr..
Kresel has been assisting District Attor-
ney Jerome In the entire investigation
and is familiar with every phase Of IT, As
soon as Mr.. Perkins and Mr.. KreseI got
busy things began TO hum. A force of
stenographers was kept busy from early
in the afternoon until late tonight, Mr.
KreseI and Mr.. Perkins using them in
relays
Forgery I'm Third Degree.
It is known pretty definitely that the
indictments viii be for forgery in the
third degree It may be that there will
be several indictments against each man.
No one in the district attorneys Office
would hint at who the men are.
Lewis L. Delafeld, counsel for George
". Perkins, former vice president Of the
New York Life, and active in its man
agement, and other officials Of the com
pany, was at the district attorneys office
early to-day. Mr.. Jerome was then be
fore the grand jury. Mr.. Perkins has
played an important part in the inves-
LEGATION He was on the stand on two
different occasions before the grand jury.
the entire examination taking up about
four hours. The anxiety Of Mir. Delafeld
seemed TO indicate that he had heard
some disturbing news about his client.
Against Former Officers.
The indictments, it was said, VIII be
against former officers Of the company.
men who were active in the manage
ment Of the company and who were IA
miliar with what was going on. one of
the men who will be indicted was a
member Of the finance committee, and
IL is said that his name has not been
mentioned in connection with the inves-
tigation Of the New York Life in a promi-
ueHt way lie has not been a witness
before this grand jury and no mention
has been made Of him in connection with
the present investigation.
There was no attempt 10 fasten the
crime Of larceny on any Of the life in
surance officials. All the evidence was for
the purpose Of showing that the books
had been falsifed in order TO conceal
stock transactions. It had to be shown
that the false entries were made al the
order or by the direction Of some officials
OF the company, ana MT Jerome IS said
To have furnished that testimony.
The indictments will be filed tomorrow
with Recorder GOff. when the grand jury
is dismissed for the term. II IS expected
that the grand jury will report TO the
recorder about I o'clock
Struggle with Jerome.
The grand jury did not vote for indict-
ments until there had been quite a strug-
gle with Mr.. Jerome. When the grand
jury convened to-day it sent a messenger
for Mr.. Jerome, who was down town in
the Supreme Court. There was some de-
lay and finally Mr.. Jerome appeared be
fore the grand jury. He talked for an
hour. In that final talk he is said 10
have won over some jurors, who doubted
the ACCESSIBILITY of finding indictments.
The grand jurors who were against in
dictments argued, it is said, the officials
of the company had not profited by the
transactions, and therefore they should
not be accused of a crime even Z there
We're false entries in the books. made
with their knowledge That is said to
have been The point on which the grand
jury was at odds. Mr. Jerome finally
convinced a majority of the grand jury
that If there We're false entries in the
books. made with the knowledge and by
the direction Of the officials Of the COM
pany to conceal some transaction the of-