Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-12-28
George w. Perkins and Charles
S. Fairchild, New York Life
Officials Held
INDICTED ON SIX COUNTS EACH
Action Grows Out of Sale of Securities
and Their Repurchase at High Fig
ure, in Order to Secure Prussian
Loan Grand Jury Attempts to
Excuse Acts of Men as individuals.

New York, Dec 2S.-George w. Per-
kins, formerly vice president of the
New York Life Insurance Company,
now member of the firm of ]. p Nor
gan & CO.. and Charles S. Fairchild,
formerly secretary of the treasury and
trustee of the New York Life Insur-
ance Company, were indicted today by
the grand jury, charged with forgery
in the third degree. The indictments
are based on what Is known as the
Prussian bond transaction, in which it
is charged false statement was made
by the New York Life, in order to sat
isfy the government of Prussia as to
the securities held by that company.
Perkins appeared In court and gave
bail in the sum Of $4,000. Fairchild is
in Europe
The jury reported six indictments
against each Of the accused men.
How Stocks Were Manipulated.
One of the transactions investigated
by the grand jury in this connection
is what was alleged to be dummy
sale of 10000 shares of Chicago and
Northwestern preferred stock and 81
800 shares of st. Paul stock TO the New
York Security and Trust Company. AS
far as appeared on the books of the
New York Life Insurance Company this
transaction was a complete sale Of the
securities. The New York Security and
Trust Company, however, recorded 1t
as loan. Later these shares were sold
by the New York Security and Trust
Company with a profit to the life In
surance company of $155.000. This all
legged false statement of sale had for it's
object a compliance with the rules
of the Prussian government that a
in that country shall not include COR
poration stocks in its assets, but may
include bonds OF such assets. i,
The grand jury's investigation OF
the affairs of the New York Life In
surance Company, which resulted in
the indictments returned today, was a
direct outgrowth of the investigation
of insurance companies by the legisla-
tive committee a year ago. So volum-
inous was the testimony taken by the
legislative committee that District At
torney Jerome occupied four months in
examining it, George w. Perkins, for
mer vice president of the company, and
a member of one of the most influential
financial firms in the world was ar
rested on a technical charge of lar
ceny, but that proceeding was merely
a test case, as was shown when it was
permitted to go thru to the highest
court in the state without any opposi-
ton from the accused.
Public Caused Investigation.
Pressure upon District Attorney Jer-
ONE to proceed against the high Off
cials increased rather than diminished
as time went on. During the spring
months the public demand for action
was reinforced by Justice O'Sullivan,
of the court of general sessions, who,
in a sensational charge to the grand
Jury. directed them to take up and in
vestigate insurance matters, with the
assistance of the district attorney il
he chose to give them assistance, or
without it if he did not. The question
was CODSlQGIGu W SOIlC GAlCIl Ny lAAeAe
jury. but no definite conclusion was
reached. and the work they had begun
was left unfinished when they were
dismissed. On request of the district
attorney special grand jury was
next drawn for the sole purpose of
taking up insurance cases. The real
however, began only a few
weeks ago, after the conviction OF
George w. Burnham, Jr., general con-
sui for tho Mutual Reserve Life In
surance Company, on a charge of forg-
cry. The indictment of Burnham and
two other high officials of the Mutual
Reserve had followed the insurance
The verdict against
Burnham convinced Mr.. jerome. so he
later announced that there might be
grounds upon which he could proceed
against the officials of the New York
Life. AS result the matter was once
more placed before the grand jury and
pressed vigorously
Grand Jury Apologies.
Accompanying the indictments was
the following statment:
"The grand jury respectfully pre-
sents that, in filing bill of indictment
against the two persons for offenses
committed in connection with the af-
fairs of the New York Life Insurance
Company, that accepting the law of
these cases as advised by the district
attorney they felt constrained to find
the indictment this day filed. The
grand jurors, however, desire to record
their conviction that in so doing, the
acts charged against the defendants
were Influenced by desire to benefit
the policyholders of the New York Life
and that the defendants themselves
neither did, nor could in any way per-
sonally profit from the acts done, that
the evidence conclusively showed that
a large pecuniary benefit was derived
by the policyholders as consequence
of these acts"
After presenting the indictments, the
grand jury was discharged When
Perkins was arraigned in the court Of
general sessions. he entered plea OF