The daily morning journal and courier., 1906-12-29
PERKINS AND FAIRCHILD
 CHARGED WITH FORGERY
t,ouo esvd molJ penupuoo>

(euo essd moLJ penupuoO) themselves neither did nor could in any way personally profit from the acts done, and that the evidence con clusively showed that a large pecun- iary benefit was derived by the policy holders as a consequence ot these acts'
 This statement was an official confr- nation of the reports which had spread about the criminal courts building where the grand jury was in session, to the effect that the jurors were not at all convinced by the eVl- dence placed before them that crime had been committed in the so-called "Prussian loanr transaction. The matter was pressed by MT Jerome however, who appeared before the grand jury on a number of occasions and made several long arguments. MT. Jerome was with the jury until late yesterday evening and again early to- dasr.
 The trial of w. D. Mann, editor of T0wn Topics, on charge of perjury, before Recorder Golf, was interrupted in order that the grand jury might re- | pert. MT Perkins, accompanied by his counsel and prospective bondsmen, were in court three quarters of an hour before the grand jurors were re- eeived It had been an open secret for 1 two days that MT. Perkins would prob l ably be indicted, and his counsel had ! had several consultations with the dis 1 trict attorney. The indictment of Mir. i Fairchild came as a completee sur l prise, for he had not been publicly connected with the present investiga- 1 ton.
 The New York Security and Trust company of which MT Fairchild was president. was at the time of the "Prussian loan" controlled by the New | York Life Insurance company, which held the majority of the stock. The railway shares were transferred by the New York Life to the Security and Trust company, and it is contended 1 that if a crime was committed. MT. F'airchild, as president of the truss l company, must have been cognizant of ! it and therefore party to the trans ] action.
 l It was said at the criminal courts building to-day that the discharge of the December grand jury, which Aollow- ed tha presentment of the insurance in dictments, does not end the laws in- quiry into the affairs of the New York Life. The statement that the statute of limitations becomes effective with regard to any irregularities developed in the company during the Armstronn
 investigation on July 1, is erroneous.
 The inquiry will probably be continued by tha January grand jury
 The "Prussian Loan" matter was de- veloped during the Armstrong investi-
 gation Some years ago the Prussian
 government adopted law which eX-
 cluded all American insurance compa-
 niss from doing business in that coun-
 try. The American life insurance
 companies were doing an extensive
 business In Prussia at the time, and
 the law was serious blow to them
 They made an effort at once to re-es-
 tablish themselves by a compliance with
 the law As a result of their efforts a
 Prussian commission was appointed
 and came to this country to investigate the various companies which wished tc resume business in Prussia. Among
 these was the New York Life. The
 commission returned to Prussia with the recommendation that the companis be permitted to resume writing insur- , ance upon compliance with the one de. mand that they should sell any and al stocks held by tn m as securities, it be- , ing a fundamental principle and theor! } of Prussian law that no insurance com pany shuld accept or hold as collatera : any stock, no matter how well it migh be secured. Only bonds were permissi
 blt
 To mest this demand the New Yorl $ Life agreed to sell ten thousand share of the Chicago & Northwestern prefer , red, and five thousand three hundreD v shan5s of Chicago, Milwaukee & St Paul preferred, which it held. It is nov
 charged that instead of selling thi |, stock outright, the company merel, I transferred it to the New York Seeurit ! & Trust company, a subsidiary concern
 by which it was held in trust, not ac
 tually disposed of until about one yea
 later, when it was sold on the stock ex
 change at a profit to the company O e $155,OO0 The Chicago & Northwestern brought a profit of $25o,0oO, while tn . Chicago, Milwaukee & St. Paul show a loss of $95 GOO.
 The indictments against Messrs. Per e kins & Fairchild set forth that ''th d defendant, with intent to defraud, di ,, feloniously make in a certain book 0 . accounts, called the 'ol1 dates cas e book" belonging to and appsrtaining t . the business of said corporation, ce1 2 tain false entries.'e
 . The entry on the first indictment ap . peared as follows;
 . "B. & S, 1000 shares Chicago - Northwestern preferred at 2S5-S47O,0Ot
 "B & S, 300 shares Chicago, Milwau d kee & St. Paul preferred at 190-s5LO LOoi t (Which false entries" the indietmen s relates, then and thsre purported {
 set forth and indicate, and did in sub