Watertown weekly leader. [volume] (Watertown, Jefferson County, Wis.) 1906-1908, 1907-01-04
H-OFF|CIALS INDICTED.
G. w. PERKINS AND C. S. FAIRCHILR
OF NEW YORK LIFE ARE AC-
CUSED OF FORGERY.
PRUSSIAN CASE IS BASIS.
Asserted That Company's Executives
Made False Statements to Satisfy
Foreign Government.

NEW YORK, Dec. 2S.-George w.
Perkins. formerly vice president of the
New York Life Insurance company, and
now a member of the firm of j. T. Nor
gan Il 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.
degree.
The indictments were based on what
is known as the Prussian bond trans
action, in which it is charged that a
false statement was made by the New
York Life in order to satisfy the gov
ernment of Prussia as to the securities
held by that company.
Jury Says Policies Gained.
Accompanying the indictments was the
following statement:
The grand jury respectfully presents that
in filling bill of indictment against two
persons for offenses committed In connec-
ton with the affairs of the New York Life
insurance company, that, accepting the law
of these cases as advised by the district at.
torney, they felt constrained TO find the in
dictment this day fled.
The grand jurors, however, desire to re-
cord their conviction that in doing the acts
charged the defendants were influenced by
a desire TO benefit the policy holders of the
New York Life Insurance company; that the
defendants themselves neither did nor
could In any way personally profit from the
acts done. and that the evidence conslusive-
~ showed that large pecuniary benefit
was derived by the policy holders as a
consequence of these acts
Perkins Is Willing Again.
Bail for Mr.. Perkins was furnished
by j. 7. Morgan, Jr., who pledged the
house at 229 Madison avenue, valued
at $3O0.0OO and Cleveland II. Dodge,
who pledged six acres of land in New
York city, valued at $4,000. Mr.. Fair
child is in Europe.
Recorder Golf told Mr.. Perkins that It
would not be necessary to furnish two
bondsmen. Perkins replied:
L prefer to have two bondsmen. 1t
is my wish to furnish enough surety
to make the bond doubly sure"
Used st. Paul and North Western Stock.
One of the transactions investigated
by the grand jury in this connection is
what was alleged to be n dummy sale of
10000 shares of Northwestern pre-
ferred stock and $50 shares of st. Paul
stock to the New York Security and
the books of the New York Life this
transaction was complete sale of the
securities. The New York Security and
Trust company, however, recorded it as
al lOdu. Later, CneSe SHARES were SOlU by
the New York Security and Trust COM
pany with profit to the life company of
$3.50 900.
Feather in Gov Hughes Cap.
The grand jurys investigation of the
New York Life was q direct outgrowth
of the investigation of the insurance
companies by Legislative committee a
year ago.
So voluminous was the testimony taken
by the Legislative committee that Dis
trict Attorney Jerome was occupied for
months in examining it. George W.
Perkins, former vice president of the
company and a member of one of the
most influential financial firms in the
world, was arrested on a technical
charge of larceny, but the proceeding
was merely test case.
Jerome Enters Hard Fight.
The pressure upon District Attorney
Jerome to proceed against high officials
increased rather than diminished as time
went on. During the spring months the
public demand for action was reinforced
by Justice O'Sulliyan of the court of
general sessions, who, in sensational
charge to the grand jury, directed them
to take up and investigate insurance
matters, with the assistance of the dis
trict attorney, if he choose to give them
assistance. or without it if he did not.
The question was considered to some
extent by that jury but no definite con-
cusion was reached, and the work they
had begun was left unfinished when they
were dismissed.
Got a Special Grand Jury
On the request of the district attor-
ney a special grand jury was next
drawn for the sole purpose of taking up.
the insurance cases. The real activity, |
however, began only few weeks ago,
after the conviction of George w. Burn !
ham. Jr. The verdict convinced Mr..
Jerome that there might be grounds
upon which he could proceed against the !
officials of the New York Life. As a re-
suit the matter was once more placed
before the grand jury and was pressed
vigorously.
Among the present and former New
York Life Insurance officials who have
been examined by the grand jury are
George w Perkins, Edmund d. Ran
dolph. treasurer; +. III. Shipan, assistant
treasurer; Woodbury. Langdon and
George A. Morrison, who were members
of the finance committee in 1903-1904, |
and Milton NJ. Mattison, head book |
keeper of the treasury department of the |
company Another witness was Alex
ander Webb, Jr., secretary of the New
York Security and Trust company.
Perkins Willing Witness.
It has been said that when Mr.. Per
kins was a witness before the grand jury
he was warned of his legal rights, but it |
is understood that he told all he knew of |
his connection with the various transac-
tons in the New York Life.
The impression that further investiga- |
ton of the insurance cases by the grand |
jury will be impossible on account of
statute of limitations, is erroneous 1t |
was announced today that the inquiry
will be continued by the grand jury |