The Birmingham age-herald., 1907-05-03
Ex-SecTetaTyOf Treasury Involved
 in Prussian Bond Case
JEROME PROBES ELECTION
District Attorney Gives Out Statement Regarding Arrest of Scrugham. Won't Take Chances
 With Ohio Laws.

New York, May 2.--counsel for the de- fendant arranged with the district at 1 torney today for the appearance next Monday of Charles S. Fairchild, former Secretary of the Treasury, who in De cember last was indicted 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. Falrchild, then a trustee of the New York Life, was in Europe when in- dlcted, but returned 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 Fairchild also returned similar indictments against George w. Perkins former vice president of the New York Life.
 A motion is now pending before Justice Fitzgerald for inspection of the min utes of the grand jury in the Perkins case.
 Prussian Bond Affair.
 In the so-oalled Prussian bond affair the New York Life was threatened with ex- pulsion from Prussia because the Prus- sian government declared that the com pany was carrying on it's credit sheets industrials which the Prussian govern ment did not consider proper securities for an insurance company to invest in. Accordingly the New York Life, it is all leged charged off its books to the New I York Securities and Trust company, of l which Fairbanks was then president, as | a bona fide sale of stocks to the value of many million of dollars in the Chi- NT.,~f i, facta hn hinpt tyn Milwaukee and St. Paul railroads. The trust company, however, it is alleged un- | der the indictment, charged off the sale as a loan, giving it's note, of which M. | M. Madison. head bookkeeper in the New l York Life's finance department, and | colored porter named Marshall, were the ] makers. It Is alleged that bII{ Perkins b nci Ai,aifchiId autaorizea ina Ifsac tiyns, l and that the same constituted Justification | of the insurance company's books.
 Fairehild will be represented in court by MeFarane, Whitney ard Monroe, at i torneys.
 Continues Investigation. 1 District Attorney Jerome continued to- | day his investigation into the recent elec | tion for directors of the New York Life l Insurance company, and which has all | ready resulted in the arrest of George | R. Scrugham, manager of the lnterna- | tional policyholders' committee and two | | conspiracy Twenty witnesses. the greater number of them former employees of the international policyholders' committee, were examined at the office of the district attorney today.
 Tonight District Attorney Jerome gave l out statement in which he declares that | he is perfectly satisfied with the work | of his assistants, which resulted in the l arest of Scrugham, and that he assumes all responsibility for what has been l done
 Concerning the form of Scrughams ar rest the district attorney states that be- | cause of earlier experience with the state | of Ohio he will never again take any 1 chances on the return of fugitive from justice from that state, so long as there is evidence to hold him in the county of New York.
 Jerome's Statement. MT Jerome says in part:
 q don't care to discuss the merits of the case while proceedings are pending in court So far as the form of the ar rest of Scrugham is concerned, 1t may be said that whenever there is sufficient evidence against anyone from Ohio upon which to order an 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 extradition matters at the hands of the state of Ohio. In the case of the people against William H. Hahn, a man prominent in republican political circles in Ohio. Hahn was indicted for the larceny of 900 from the Man haitian Fire Insurance company "The governor of the state of New York made requisition upon the governor of the state of Ohio for his extradition. l..e governor of the state of Ohio is- sued his warrant for the arrest of Hahn and his extradition after a hearing. and immediately a write of habeas corpus was issued 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, remanded 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 of- warrant. which he had previously issued. and the state of New York has never been able to arraign and try William II. Hahn
 While I am district attorney of this county I will never take chance on the return of a fugitive from tustice( from the state of Ohio as long there Is any evidence to hold him in the county of New York"
 Government May Take Hand.
 It was said tonight that the federal government, through United States Att torney Stinson. may take a hand in the prosecution of the international commit tees representatives for alleged tamper- ing with the New York Lifes ballot mail in the insurance election under section 1892 of the United States compiled stat utes.