The daily morning journal and courier., 1907-05-03
C. s. FAIRCHILD TO BE ARRAIGNED Former U. s. Treasurer, Who was Indicted Last
 December. ACCUSED OF FORGERY. Case Grows Out of the New York Insurance
 Inquiry.
ACCUSED OF FORGERY.

New York, May 2.-Counsel for the defendant arranged with the district attorneys office to-day for the appear ance next Monday of Charles s. Fair child, formerly secretary of the treas ury, who in December last was indict- ed on six counts charging forgery In the third degree. The case grew out of what came to be known as the ''Prussian bond transaction" of the New York Life Insurance company.
 MT. Fairchild, then trustee of the New York Life Insurance company, was in Europe when indicted, but re- turned to this country six weeks ago. He will be arraigned before Justice Greenbaum in the criminal branch of the supreme court.
 The grand jury that indicted Fair child also returned similar indictments against George w. Perkins, then vice. president of the New York Life. A motion is now pending before Justice Fitzgerald for an inspection of the minutes of the grand jury in the Per kins case.
 In the so-called Prussian bond affair the New York Life was threatened with expulsion from Prussia because the Prussian government declared that the company was carrying on it's credit sheet industrials which the Prussian government did not consider furnished the proper security for an insurance Investment. Accordingly the New York Fa ;- o11 aI1 rcrad off tta hnnlc to the New York Security and Trust company, of which Fairchild was then president, as a bona fide sale, stocks to the value of mAny million dollars in the Chicago and Northwestern and the Chicago, Milwaukee and St. Paul rail- roads The trust company, however, it is alleged, charged off the sale as 8 loan, giving it's note, of which M. M. Mattison, head bookkeeper in the New York Life's finance department, and a colored porter named Marshall were the makers. It Is alleged that both Per- kins and Fairchild authorized the transactions and that the same consti- tuted Justification of the insurance company's books.
 Fairchld will be represented in court by McFarlane, Whitney & Monroe, at torneys.
 District Attorney Jerome continued to-day his investigation into the recent election for directors of the New York Life company, and which has already resulted In the arrest of George R. Scrugham, manager of the internation- al policyholders' committee, and two employees of the committee, on charges of conspiracy. Twenty witnesses, the greater number of them former em- ployes of the International poicyhold- CTS committee, were examined at the office of the district attorney to-day. What developed was not given out, but it was intimated that progress has been made.
 Tonight District Attorney Jerome gave out a statement in which he de- clares that he is perfectly satisfied with the work of his assistants which resulted In the arrest of Scrugham, and \ that he assumes all responsibility for what has been done. Concerning the form of Scrughams arrest, the district attorney states that because of earlier experience with the state of Ohio he will never again take any chances on the return of fugitive from justice from that state so long as there is eyi- dence to hold him in the county of New York
 MT. Jerome says, in part:
 q do not care to discuss the merits of the case while proceedings are pend- ing in court. So far as the form of the arrest of Scrugham is concerned, it may be said that whenever there is suffi- cient evidence against any one from Ohio upon which to order arrest there will never be any delay or any chances taken. I make this statement in view of the very extraordinary treatment that this county has received in ex- tradition matters at the hands of the state of Ohio. In the case of the Peo- ple against William H. Hahn, a man prominent in republican political cir cles in Ohio, Hahn was indicted for the larceny of forty thousand dollars from the Manhattan Fire Insurance company
 "The governor of the state of New York made requisition upon the gov ernor of the state or Ohio for his ex- tradition. The governor of the state of Ohio issued his warrant for the ar rest of Hahn and his extradition after a hearing, and immediately writ of habeas corpus was sued out in the courts of Ohio. For two years Hahn fought extradition in the courts of Ohio and the expense to this county was very great. The supreme court of Ohio finally dismissed the writ, re- 1nanded Hahn to custody to be extra dited to the state of New York and immediately thereafter, and within a day of the expiration of his term of office, the governor of Ohio revoked his warrant, which he had previously is- sued, and the state of New York has never been able to arraign and try Will liam H. Hahn.
 While l am district attorney of this county I will never take a chance on the return of a fugitive from justice from the state of Ohio as long as there is any evidence to hold him within the county of New York"
 YALE VARSITY QUARTETTE.
 The Yale varsity quartet will give a