THE INSURANCE SCANDALS IN AMERICA.

Marlborough Express, Volume XXXIX, Issue 112, 15 May 1906, Page 4

THE INSURANCE SCANDALS IN AMERICA.

A MILLIONAIRE ARRESTED

Telegraphing on March 28th, the New York correspondent of the London Daily Mail says : — " Mr George W. Perkins, tho millionaire e::»vicc i)resident of tho New York Life Insurance Company, was formally arrested this morning on a magistrate's warrant in regard to the insurance company's contribution ;of ,£9600 to the Eepublican campaign fund. He was immudiately released on parole and placed in the technical custody of his counsel on a writ for habeas corpus, which will carry the case to the Supreme Court, according to the previous arrangement. The argument of the matter has been postponed till Friday afternoon. " Whatever Mr Justice Greenbaum's decision may be as to whether the oilence of grand larceny, the charge in the warrant, has been committed or not, the case will be carried to the highest appeal tribunals, so that the decision is unlikely to arrive before the Public Prosecutor, Mr Jerome, is ready'to attack the insurance scandals in all phases. " The nominal arrest of Mr Perkins was made at the office of his attorney, Mr Delafield.. and the financier was not taken to a Police Court, but went directly to the Appellate Court, where the petition for habeas corpus was granted. Mr Delafield said that Mr Perkins was of unimpeachable character, arid was charged with a purely technical offence. " In. the summer of 1904, Mr Perkins, being a member of the Morgan firm, and also vice-president of the New York Life, made successive payments to Mr Cornelius Bliss, the treasurer of the Republican campaign fund, in pursuance of the arrangements made with the late Mr John McCall, then president of the company. Mr Perkins made the payments from his own funds, but in the December following obtained reimbursement from the New York Life, with added interest. The payment of the cheque was authorised by the company's Finance Committee, on the ground that the Republican policy was favourable to the best interests of the company. The payment was entered in the ledgers, but the nature of the payment was not recorded. That, however did not concern Mr Perkins, who is not responsible for the New York Life's accounts.

" There was no criminal intent, and Mr Perkins believed that he acted for the best interests of the Now York Life.

" After the application for habeas corpus had been granted Mr Perkins left the Court.

"Meanwhile the grand jury of the Sessions Court, whom Justice O'Sullivan had charged to examine the evidence concerning the campaign contribution, with a view to framing an indictment and forcing an immediate prosecution, are in a state of perplexity. Finding that the case had been taken over their head they applied to Mr O'Sullivan for specific instructions, which the judge, not having the facts judicially before him, was unable to give. ft Thus far Mr Jerome, tho Public Prosecutor, has the victory in the duel of legal technicalities between himself and the judge, but tho policy holders' interests are not concerned either way.

" They are more closely interested in the proceedings of the Equitable Board this afternoon, when it received tho report of the committee with regard to the legal expenses incurred during the contest between Mr Hyde and Mr Alexander for the control of the society's funds. Both officers retained the most expensive counsel available to fight one another, and both sets of counsel expect the policyholders to pay Mr Alexander's lawyer's claim, ,£24,000, covering the few months, and tho matter has been referred to arbitration.

" The Mutual Board also met, and accepted tho resignation of three more trustees, Messrs Gillette, Granniss, and Gerry."