The Montgomery advertiser., 1907-05-03
FAIRCHILD READY
FORMER SECRETARY OF TREAS
 JURY UNDER INDICTMENT.
Is Charged With Forgery in Connec- tIon With New York Life Frauds. VIII Appear in
 In Court Monday.

New York, May 2.-Counsel for the defendant arranged with the district attorneys office today for the appear ance next Monday of Charles S. Fair child, former secretary of the treasury, who in December last was indicted on six counts charging forgery in the third degree. The case grew out of what came to be known as the "Prus- sian bond transaction" of the New York Life Insurance Company.
 Fairchild, then a trustee of the New York Life, was in Europe when indict- ed but returned to this country six weeks ago. He will be arrainged be- fore Justice Greenbaum in the crim- final branch of the supreme court.
 The grand jury that indicted Fair child also returned similar indictments against George W. Perkins. former vice president of the New York Life. A motion is now pending before Jus tice Fitzgerald for an inspection of minutes in the grand jury in the Per kins case.
 In the so-called Prussian bond af- fair, the New York Life was threat ened with expulsion from Prussia be- cause the Prussian government de- clared that the company was carrying, on its credit sheet, industrials which the Prussian government did not con- slider the proper security for an insur- ance investment Accordingly, the New York Life, 1t is alleged. charged off its books to the New York Securi- ties and Trust Company of which Fairchild was then president. as a bona fide sale. stocks to the value of many millions of dollars in the Chi cago and Northwestern and the Chica- go, Milwaukee and St. Paul railroads. The trust company. however 1t is all legged under the indictment, charged off the sale as a loan. giving it's note of which NJ. M. Mattison. head book keeper in the New York Llfe's finance department. a colored porter named Marshall, were the makers. It is all legged that both Perkins and FairchiId authorized the transactions and that the same constituted falsif1cation of the insurance company's books.
 Fairchild will be represented in court by McFarlane. Whitney and Monroe. attorneys.
 District Attorney Jerome continued today his investigation into the re- cent election for directors of the New York Life Insurance Company and which also resulted in the arrest of George R. Scrugham. manager of the International Policyholders Committed and two employees of the committee on charges of conspiracy. Twenty wit nesses, the greater number of them former employees of the International PoIicyholders Committee. were exam ined at the office of the District At torney today
 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 Scrugham's Arrest. the District Attorney states tha. because of earlier experience with the State of Ohio, he will never again take 1 any chances on the return of fugitive from justice from that State so long as there is evidence to hold him in tht ! county of New York.