Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-12-07
THE FIDELITY CASES.
PRELIMINARY BEARING OF GALLAGHER HELD
LAST NIGHT
In he Office Of the County Jail-A Portion Of the
Evidence Taken and the Hearing
Continued.

The preliminary hearing OF w. l..
Gallagher, perintendent OF the local
branck OF the Fidelity Building Loan
and Investment Association, took place
last night 10 the Office Of the county
Jail. The warrant upon which
Gallagher was arrested charges
him with fraudulently obtaining
money in the name of the Fidelity As
ISOLATION, which he knew TO be fraud
ulent concern. There were eighteen
witnesses present, and owing to the
wrangling of counsel aud the thorough
examination OF each witness, the hear
ing was prolonged until late in the
night, and then adjourned.
Prosecuting Attorney John A. How
ard and M. d. Post, Esq, appeared for
the prosecution aud Hon. j. b. Som
merville for the defense. The first wit
ness called was Henry Floto, who swore
out the warrants upon which defend
ants were arrested. He knew Mr.. Gal
lagher for three years as cigarmaker
and afterward as collector aud solicitor
for the Fidelity Association. His first
payment to Gallagher was made about
two years ago. and be paid altogether
between $50 and $3.50. His wife APP
piled FOR withdrawal on August Gath,
and was told that she could get only
one. fourth of the money which had
been paid in. He offered TO paw interest
Semi-annually upon the remainder, or to
mi
ness TO lose the remainder. When
witness went into the Fidelity
Association, Gallagher represented that
the money paid in could be drawn out,
with interest at the rate OF six per
cent After paving in for two years,
be (witness) made application for with
drawal, and was told by Gallagher that
be could not get more than half
the money paid into the Associ-
alton. Gallagher represented that the
Association was "solid as rock;" that
the men at the head of it were under
heavy bonds; that there were 10000
certificate holders" "When l found
could not get my money l consulted an
attorney, and demanded the return of
the certificate l had given him. was
told the general manager would be here
In few days. When the general man
ager came he offered to give me one
half down as loan, and the remainder
in two months. | borrowed $40 from
Gallagher, and gave my certificates as
security for the loan. 1t was last jan
uary. Gallagher told me when he came
back from Washington that he had
more confidence than ever 10 the
Fidelity"
On cross-examinatlon by Mr.. Som
merVille, witness said two certificates
were taken by his wife that he knew
nothing about o. the time. There were
seven in all, and all in his wife's name.
At the end Of two years he demanded his
money, and was told that he could not
get more than one-half the amount he
paid in. Vice-President Wall told him
that under the rules he could get only
twenty-five per cent. Of the money paid
in, but he (WalD had authority TO
offer him fifty per cent.
Mrs. Henry Floto was next called.
On direct examination she said Mr.. Toll
son introduC Gallagher TO her, telling
her that he would attend to the collec-
tions. Gallagher told her that at the
end Of two years she could withdraw all
the money paid in, with interest. Be-
fore the two years expired, she said she
would withdraw when the time was up.
Gallagher asked her 10 leave ii In, as it
was making money. When the two
years expired she demanded the money,
and was told that she could not get 1t.
She expressed surprise, and Gallagher
saiu he had also been misled. He then
made a proposition to loan her half OF
IL. She took 2 blank home, consulted
her husband, and came back for half
the money with the application signed.
She was then told she would get her
money when her turn came. She went
back month later, and was told her
turn had not come" ~She wanted
to borrow SO, and hs wanted
her certificates as security. She
has not yet received the money. The
certificate was given to Gallagher, who
said he would send it TO Washington,
that she should get her money.
She Is still awaiting her turn. she
never had sny-faith in the Fidelity
Company, and would have stopped her
payments but for Gallagher's persist