Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-12-11

owed him note. de never MADE ap-
pication for his money.
The State here rested.
After a consultation with his at
tornies, the defendant, w. l.. Gallagher,
was sworn. He said he first became
connected with the Fidelity as SUBJ
agent in May of 1892, and succeeded
Mr.. F. b. Tolston as uperintendent
He said his wife and children have for
ty-six shares of stock in the company,
In which he had paid between 81, 100
and 81, 200. The first five shares were
taken in the spring of '92. Witness
loaned money TO different persons on
their stock, and in that way came into
possession of thirty-6ve shares. He
loaned money to thirty or forty persons.
He loaned money to Mrs. Floto and Mr..
Ullum.
Gallagher said the Fidelity and CO.
lumbia Associations were one and the
same, and that the name had been
changed on account of the confusion
which was apt to arise.
Continuing, Gallagher admitted that
he said money could be withdrawn after
Two years; that he so understood
the matter himself; that Mr..
Toston went to Pittsburg when
the two years were up, and
when he returned offered him the po-
.sition OF superintendent; it was then
that Talston informed him that only
one-half could be withdrawn; that he
inquired Of TolstOn about the matter,
and Talston said he also had so under
stood it until corrected; that Vice Pres
ident Wall visited Wheeling, learned
the situation, and said that the COM
pany's methods had been misrepresent-
ed; that the company's rules only per-
mitted a withdrawal Of twenty-five per
cent, but since the matter had been
misrepresented in Wheeling, he in
structed agents to permit shareholders
to borrow one-half.
Gallagher testified that the bylaws
provide that all money paid into
THE LOAN FUND,
with six per cent interest, could be
withdrawn at the end of two years. He
construed the language to mean just as
he represented IL To shareholders. The
loan fund, he said, was the fund to be
loaned out. Defendants present I'M
Outstanding of the bylaws is different
in important details from what it was
previous to the visit of President
Wall. He first learned of the change
in the name OF the Association before
ToIston left here.
Gallagher told Wall he was not a
DO ok-keeper, and was instructed TO do
the best he could. He was instructed
to write certificates for the Columbia
and Fidelity both, Wall explaining that
he wanted to know how much new bus
mess was done.
Col. Arnett-"Did you ever obtain
money from anybody by false repre-
sentation?"
mo, sir.
Cross-examination by Mr.. Howard
I am "a years OF age; lived in Wheeling
years; before that lived in Benwood,
Bellaire, Batesville and Temperance
Vile; have been soliciting nearly all my
life; l received money from Mrs Henry
Floto, probably 500; did not repre-
sent to her that she could
receive all her money and in
terest at the end of two years;
Andrew Wall is Vice President and
Manager of the Columb is, which is in
corporated under the laws of Virginia;
the new Association is the old one,
with its name changed.
"Do you know of the Fidelity Build
ing and Loan Association OF Washing
ton, and its officers?"
81 think some of the officers OF the
Columbia are at the head of it"
u"When did you find out your mistake
about the payment of money at the end
of two years?"
about the time became superin-
tendent in May 1894"
what reason did Tolston give you
for wanting TO leave?"
"He was never satisfied here and
wanted to 60 to Washington whore his
people live
And that was false, wasn't lt?"
81 don't know.
"Mr. Gallagher, after you found out
your representations were false you &C
cepted the uperintendency?"
Eyes, sir. after they promised to
make it right. Mr.. Wall said the COM
pany had not made the representations,
but Tolston said he
so UNDERSTOOD IT
and Wall agreed to make it right"
How much real estate did the COM
pauY have here?"
"None at all"
"How MANY applications for loans up
on real estate were made while you
were in charges"
Two or three-not more. wrote to
the home Office, and they said they
would make the loans. We never loaned
on real estate, to my knowledge"
Were appraisers ever sent out?"
"Onlv twice TO my knowledge"
They were either employees or per-
sons interested in the company, were
they not?"
"Mr. Carnahan was an appraiser.
don't think he was interested"
Didn't the Association advertise that
it would place low valuation on real
eStateP"
II think it did,"
"You loaned money of your own to
thirty or forty persons, didn't you?"
Eyes, sir.
WASN'T that the company's money,
given to you to loan to persons who
were particularly urgent?"
No, sir. the money belonged to me
and my wife?"
Didn't you propose yourself to loan
money!"
yes, sir; when they were in tight
plac e."
"Had you no instructions on that
subject from the COMPANY"
mo, sir"
"Did the company have any knowl-
edge of the matter?"
CT It'll 4oId Nr Wall and mar.