Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-12-11
GALLAGHER'S STORY
ABOUT TIE FIDELITY BUILDING, LOAN AND
INVESTMENT ASSOCIATION,
And lis Very Peculiar Business Methods The
Defendant Tesrfss in Ills Own Behalf
Witnesses for the State.

this city Of the Fidelity and Columbia
Building Loan and Investment Associa-
tions, was resumed in the jail Office last
night. Justice Gillespy conducted the
examination. Prosecuting Attorney
John A. Howard, and NJ. D. Post, Esq,
appeared for the State; and Col. w. w.
Arnett and Hon. j. B. SOmmerville for
the defense.
Eight new witnesses for the State
were sworn, in addition to the witnesses
who did not testify Friday night. There
were no new developments Of an i'm
portant nature, brought out by the evil
dence Of the States witnesses, who
we're all examined. The State rested.
and the defendant was placed on the
stand. He was being cross-examined
by Mr. Howard when court adjourned
until ten o'clock this morning, The
REORGANIZATION will probably be very
thorough, and as there are several other
witnesses for the defense, 1t will proba-
DIV be late this afternoon when the
hearing is concluded.
THE FIRST WITNESS
to testify was Rachael Hughes, OF Ben
wood. She identified Gallagher as a
man who told her that she would have
to pay dues for two years before she
could withdraw any money. She made
an application, and was put off from
time 10 time. leaving her books and
certificates with Gallagher. She got
no receipt Her last visit to the
Fidelity Office was about a month ago,
when she was TOLD that there was an
unavoidable delay In the main
Office, and she would have to
wait longer. Witness tried to borrow
money, but Gallagher said he had no
available funds. On cross-examination,
witness stated that she borrowed eight
dollars from Gallagher, and gave her
certificate as security. She thought
the Company was dishonest from the
start. Witness frequently expressed
her doubts to Gallagher, and was al
ways assured that the'Company was
solid.
The next witness was Lizzie Macklin,
of the Eighth Ward. Her transactions
were with GallRgher's brother, and her
LCSLlmOuy was uOb uumlbIcAs
VIM. Hess was called. he had five
shares Of Fidelity stock, which he
bought from Gallagher. Gallagher
represented that IL was q good thing
for a poor man; that he could get it
back 10 two years. At the end Of two
years, in October, be made application
for his money, and was told that he
could only get One-half of ii. Gallagher
offered TO loan him some money. He
gave bis certificate to Gallagher, and
few days later he received Columbia
certificate.
Mary Fritz testified that she bought
Fidelity stock, but dealt with parties
other than the defendant.
The next witness was Mrs. Discher,
who swore that she subscribed for six
shares Of stock, and was told that she
could withdraw her money at the eXpi-
ration Of two years; that she tried TO
withdraw her money, but Gallagher per-
suaded her that it was a good thing,
and TO her interest to allow IL TO re-
main.
Mrs. William Hess knew Mr.. Gala
CHER She had FIVE shares OF Fidelity
Stock, bought from defendant; Gala
CHER said the money could be drawn out
in two years; at the end OF that period
she could not get il, as 1t was in her
husbands name.
Isaac Ullmer bought stock from Gal
lagher in September, 1892, and took
three additional shares during the fol-
lowing January. He was told that he
could withdraw in two years the full
amount paid in and interest at 6 per
cent. He applied for his money at the
end OF two years, and was told he could
draw half Of it. Witness asked how it
was that
OTHERS WE'RE PAID,
aud Gallagher replied that that was
done In one or TWO cases. He borrowed
SIT from Gallagher, aud paid II back
with interest. To Mr.. SOmmerville,
witness stated that he signed an appli-
cation for Fidelity certificates, but did
not understand the contents. He asked
for a paid up certificate and received
Columbia certificate for $50. Gallagher
said the Columbia was the same as the
Fidelity-simply a change in the name,
but witness could not remember the
reason he gave.
At this point Mr.. Sommerville stated
that the change in the name had been
made because Of the similarity in the
name of the Fidelity Building and Loan
Association, also OF Washington. The
Fidelity, in order TO prevent further an
noyance,, petitioned Court sc Alexan-
dria, Va, and was granted the right TO
10 al eli
Solomon Peterson, colored, wascalled.
His wife was a shareholder in the
Fidelity, and there was an understand
ing that at the expiration Of two years
the money could be drawn out by giving
30 DAYS notice His wife drew out $50,
and paid up Columbia certificate for
Fidelity share.
Mary Peterson, colored, bought stock,
but not from Mr.. Gallagher. She paid
in SlO6. Her testimony corroborated
that OF her husband.
Mary Vennamin was examined. She
knew Gallagher; bought nine shares OF
Fidelity stock from him on bis repre-.
sentation that it was good method OF
saving money, and she could draw it
out sc the end Of two years with interest
at six per cent. Before the two
years were up she had some
trouble, snd decided to discontinue
her payments if possible. She consent
ed to draw $40 from the bank, and pay
up in full at once. When she demanded
her money at the proper time, Gallagher
said she could only get one half. Wit
ness protested that he had not so repre-
Sented the matter. and defendant re-
piled that he had not understood it
himself She was told the other halt
would have TO remain for eighHyears.
She had been told dozen times that