Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-28
FA|RCH|LD AND
PERKINS FACE
FORGERY CHARGE
Indicted by Grand Jury in Con-
nection With the New York
Life Investigation.
FALSE REPORT is ALLEGED
True Bills Based on Transaction Made
to Satisfy Prussia as to
Securities.
INQUIRY WILL BE CONTINUED
Jury in Presenting Its Report to
Recorder Golf Says Defendants
Were Influenced by a Desire
to Benefit Policyholders. ,

1hulIliiielltS charging george w.
Perkins, former vice president of
the New York Life Insurance Com
pany, and Charles S. Fairchild.
former Secretary of the Treasury,
with forgery in the third degree
were found today by the New York
grand jury.
The grand jury's investigation of
the affairs of the New York Life
Insurance Company which resulted
in the indictments was direct out
growth of the investigation of the
insurance companies by legisla-
tive committee year ago. SO vol
luminous was the testimony taken
by the legislative committee that
District Attorney Jerome was occu-
pied for months in examining it.
George w. Perkins was arrested on
technical charge of larceny. but
that the proceeding was merely a
test case was shown when it was
permitted to so through to the
highest court in the state without
any opposition from the accused.
NEW YORK, December oS.-George w.
Perkins. former vice president of the New
York Life Insurance Company, and now a
member of the firm of j. p. Morgan & Co.,
and Charles S. Fairchild, former Secretary
of the Treasury, and a trustee of the New
York Life Insurance Company, We're in
dicted today by the grand jury, charged
with forgery in the third degree. The in
dictments We're based what is known as
the PruSsian bond transaction, 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 Prus-
STA as to the securities held by the COM
pany.
The indictments were reported to Re-
corder Golf, while another case was being
heard. This hearing was suspended while
the recorder listened to the report of the
grand jury. The jury reported six indlct-
ments against each of the accused men. Ac-
companying the indictments was the fol-
lowing statement:
The Jury's Statement.
THE grand jury respectfully presents
that in filing a bill of indictment against
two persons for offenses committed in con-
nection with the affairs of the New York
Life Insurance Company, accepting the
law of these cases as advised by the dis
trict attorney they felt constrained to find
the indictment this day filed. The grand
Jurors, however, desire to record their con-
viction that in doing the acts charged the
defendants were influenced by desire to
benefit the policy holders of the New York
Life Insurance Company; that the defend
ants themselves neither did nor could In
any way personally proht from the acts
DONE and that the evidence conciuslVely
showed that a large pecuniary benefit was
derived by the policy holders as a conse-
Quence of these acts
After presenting the indictments the
grand jury was discharged with the thanks
of the recorder. The impression which
has become general that further invesuga-
ton of the Insurance cases by the grand
Jury will be impossible on account OF the
statute of limitations is erroneous. IL
was announced today that the inquiry VIII
be continued by the grand jury which VIII
begin it's la,bors in January
MI. Perkins Arraigned.
When Mr. Perkins was arraigned in the
court of general sessions he entered plea
of not guilty to the indictments, reserving
the right to withdraw the plea at a later
date. He was given until January n to file
denurrers. His bond was fixed at $4,000.
Bail was furnished by ]. p. Morgan, jr.,
who pledged the house at 229 Madison ave-
nue. valued at 100000. and Cleveland III.
Dodge who pledged six acres or land IN
New York city valued at $4,000.
Recorder Golf told Mr.. Perkins that 1t
would not be necessary TO furnlsh TWO
bondsmen. Perkins replied: Il prefer TO
have two bondsmen. 1t is my wish to
furnish enough surety to make the BOND
doubly sure.
one of the transactions investigated by
the grand jury what was alleged TO be
a dummy sale of 10000 shares OF chicago
and Northwestern preferred stock and 5,3Oo
shares of ST. PAU stock to the New york
Security and Trust Company. So far as ap-
insurance Company this transaction was
complete sale of the securities The New
York Security and Trust Company, now
ever recorded it loan.
Later these shares were sold by the rev
York Security and Trust Company with a
profit to the life insurance company OF sloo,-
coo. This alleged false statement or sale
had for its object compliance with the rules
of the Prussian government that life IN
surance company doing business in that
country shall not include corporation stocks
In its assets, but may include bonds.
Pressure on Jerome.
After the arrest of Mr.. Perkins several
months ago on technical charge of lar
ceny pressure upon District Attorney Je-
rome to proceed against high insurance Of
fcials increased rather than diminished.
During the spring months the public de-