New-York tribune., 1906-12-29
INDICTED FOR FORGERY.
PERKINS And FAIRCHILD.
Grand Jury Says Neither PrOfted
by PTuSsian Bond Deal.

and Charles 3 FairChiid yesterday six counts
charging forgery IN the third degree. based on
what is known the New York Life's "Prus-
sian bond" transaction. Following the return OF
the indictments. it was TImored In the Criminal
Courts Building that the January grand jury
would resume an investigation Of New York Life
affairs only trenched by the present body.
The possibility OF the indictment similar
charges, arising out Of analogous transactions.
we'll outside the statute OF limitations. OF at
least two other New York Life officials. one Of
whom is still director. was discussed freely IN
the building. The January grand jury. it was
rUmCred would also make investigation OF
the Metropolitan Life. II is understood that
Lewis L. Delafeld his counsel. will demur TO
the indictment of Mr.. Perkins.
In its presentment the grand Jury sOftened
its action by saying that neither Mr.. Perkins
Mr.. Fairchild had benefited personally by
the transaction: that they had acted in the
policyhoIders' interests. and that the policy
holders had benefited by the transaction. The
presentment also says that the grand jury felt
constrained to bring these indictments. "accept-
ing the law advised by the District Attor-
ney."
In conversation with Tribune reporter last
night. Mr.. Perkins seemed to be chiefly con-
cerned the death OF President Cassatt OF
the Pennsylvania Railroad He would make no
statement for publication his indictment
Mr.. Delafeld. when the reporter visited hts
hotel equally retricent.
Mr.. Perkins is now member OF the firm OF
j. T. Morgan & Co. Formerly however Hs
was vice-president OF the New York Life and
"a member OF its finance committee, as we'll a
director OF the New York Security and Trust
Company, of the New York Life's subsidiary
concerns involved in the bond transaction.
Mr.. Fairchild formerly president OF the
New York Security and Trust Company. and
for
under President Cleveland. Mr.. Fairchild is
now in Europe He not represented in court
yesterday. but Immediately after his Indictment
local representative. IT is understood. sent him
cable message. telling him Of his indictment.
Recorder Golf fixed Mr.. Perkinss bail st
SfoOoG ]. Pierpont Morgan. jr.. qualified a.
one of Mr., Perlzins's bondsruen giving the house
at No 30 Madison avenue, valued at S3O0O0O.
as security Cleveland H. Dodge. OF Riverside.
was the other bOndsman-
PRUssIAN BOND TRANSACTION
In the so-caned Prussian bond affair the New
York Life was threatened with expulsion from
Prussia because the PrIssian government de-
elared that the company carrying its
credit sheets tudUstrials which the Prussian gov
ernment did consider furnished the proper
security for insurance Investment Accord
ingy the New York Life 1t is alleged. charged
off its books to the trust company as a bona
dollars in the Chicago & Northwestern and the
Chicago. Milwaukee & St. Paul
The trust company. however, IL Is alleged.
charged off the sale as a loan. giving its note
of which NJ NJ. Mattison, head bookkeeper in
the New York Life's finance department. and u
Negro ernploye named Marshall the
makers.
1t is alleged that both Mr.. Perkins and Mr.
Fairchild authorized the transactions.
TEXT OF THE PRESENTMENT
Soon after the grand jury reported to Re-
corder Cioff. at l o'clock Russell A. Hyde. the
foreman read the palliative presentmeut.
which follows:
That in filing bills of Indictment against two
persons for offences committed in connection
with the affairs of the New York Life Insurance
Company, the grand jury presents that. ac-
cepting the law of these eases advised by
the District Attorney. they felt constrained 20
file the indictments this day filed The grand
jurors. however. desire to record their convic-
tiOn that in doing the acts charged the defend
ants were solely Influenced by desire TO bene-
fit the policy holders of the New York Life In
surance Company; that the defendants them
selves neither did nor could in any way per-
sonally profit from the acts done. and that the
evidence conclusively showed that large pecu-
MARY benefit was derived by the poliCyhOlders
as consequence of these acts
The six indictments against Mr.. Perkins are
similar in wording, and are known as common
indictments for forgery in the third degree. The
transactions alleged, however, differ and all OF
them occurred on December 81, 1901 mdict-
ment No. 5S132. which is a fair sample, runs
as follows:
That the said George W. Perkins on Decem-
ber 81. 1901. while he was a vice-president and a
trustee, and member of the finance COMMITTEES
Of the board OF trustees OF the New York Life
Insurance Company with intent to defraud did
felOniOUSly make. i'm a book of accounts called
"Odd Dates Cash Book. b. J. Oct. H. 1901" on
page 62, a false entry, as follows:
"B :. 5000 shares Chicago & Northwestern
Railway at 2S3-13S-$1 O0OO.
b 5 5000 shares Chicago, Milwaukee & ST.
Paul Railway Company, at 19O-I33-$95O0O0.
Which said false entry then and there pllr-
ported To set forth and indicate and in substance
and effect there signify and declare that the
said New York Life Insurance COmDanV. on
December 81, 1901, received In payment for the
5000 shares of the preferred capital stock of the
Chicago & Northwestern Railway Company the
sum OF Sl.SSO.OO0. the same being at the price
or S23S FOR each share thereof. and received IN
payment for the 5000 shares Of the preferred
capital stock of the Chicago Milwaukee & St
Paul Railway Company. the sum OF S950OOO. the
same being az the rate of $3.50 for each share
thereof whereas in truth and in fact the said
New York Life Insurance Company had not on
December 81, 1901, received in payment for the
5000 shares Of the Chicago & NOrthU- estaru
payment for the 5000 shares OF the Chicae0
Milwaukee & st Paul Railway Companv +be
sum OF S95o,oeo or any sum, all Of which the
said George w Perkins then and there we'll
knew against the form of the statutes ~,
such ease. made and provided and against tbe
peace of the people Of the state of New York
and their dignity.
All the indictments bear the names Of Nr,
Hyde and District Attorney Jerome. They are
also indorsed with the names of the witnesses
which include Mr. Perkins The other witnesses
E D. Randolph. NJ NJ Mattison. F. II.
Shipman. Woodbury. Langdon. L. Carol Root.
Darwin P. kingsley. George y. Morrison Isaac
VauderDOeI Alexander = Npbh " R,rf,s W