The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-12-11
THE FIDELITY CASES.
The Hearing of W. L. Gallaher
Continued at Great Length,
AND is NOT NEARLY FINISHED YET.
A Cloud of Witnesses Repeat Similar
Stories to Those Already Told by
others-They We're Deceived by
Misrepresentation - Agent Gala.
her Tells His Side of the Story.

Last night at the office Of the county
Jail Squire Gillospy again opened the
preliminary examination OF W. l.
Gallaher, ex-superintendent OF the
Wheeling office OF the Fidelity and Co.
lumbia Building and Loan Investment
Association, charged with obtaining
money under false pretenses. Prose
cutting Attorney Howard and NJ. d.
Post appeared for the state, and Hon.
J. B. Sommervilio and Col. Arnett for
the defense. There was crowd OF wit
nesses present, all Of whom repeated
stories substantially like the ones told
on the stand the week before. They
all said they had gone into the scheme
under misapprehensions. The repre-.
sensations made to them before they
took stock and those when they wanted
to draw out money were widely az
variance.
Among the new witnesses were
Rachel Hughes, Lucy Macklin, William
Hess, Julia Hess, Mary Fritz, Eliza
Disher, Isaac Ullum, Solomon Peterson,
Mary Peterson, Mary Venaman, Louis
Weirick and Albert Beltz.
Peterson and his wife are colored peo.
pie. She testified Gallaher put her of
from tune to time when she wanted to
draw her money out, until finally she
got Mr.. ]. Z. Hughes to accompany her,
when she readily got her money, though
not 90 much as had at first been prom
ised her.
The state rested here, and after con.
sultation the defense put the accused
on the stand and Colonel Arnett exam
ined him.
Mr.. Gallaher said he was sub.agent
for the company until about May OF
this year, when he became superin-
tendent OF the Wheeling Office. He
succeeded F. B. Tohlson. Members OF
his family held forty.six shares and
paid up certificates for SLY. They had
paid in about 81, 100. The frat five
shares were taken soon after he was
employed. Later he had loaned money
to other people, possibly thirty or forty
people. He took stock as security, aud
had SO procured some other shares.
He said the Fidelity and the Column
bia companies were one and the same
concern. He had told people that after
two years they could draw out all they
had paid in, with 6 per cent interest,
and afterward had told them they could
draw out but half. lie had been de.
ceived himself, and when he found it
out he was out OF humor. Mr.. Wahl,
general secretary and manager, came
here and explained that this was mis-.
take. He offered to lot those who had
paid in take out from so to 100 per cent
as loan. He had tried to tell people
lust what he believed to be true. He
now understood the loan fund to be but
so per cent OF the amount paid in. As
soon as he found out the difference he
told everybody what he believed to be
true. He told Mr.. Wahl he could not
keep books, and was told to keep them
in his own way and anything that was
wrong would be corrected and sent
back. He categorically denied that he
had ever obtained cent from anybody
by false representations.
On cross.examination he said all the
money the Flotos paid him had been
turned into the company's treasury.
The company never loaned a cent on
real estate in Wheeling. Some loans
had been made here on paid up certi-
ficstes. There had been some applica-
tions for loans. but only two or three
had any money or other property. He
never had knowledge OF appraisers
going out to value property but once or
twice. In one case the appraisers had
no interest in the company. He had
seen and circulated an advertisement to
the effect that appraisers would be
chosen who would put low valuations
on the property. He did not know
whether any loan had ever been made
anywhere on real estate. He used to
have bills saying loans had been made.
The company had collected S95, 900 in
Wheeling, as near as he could guess,
He had paid back about s, 600.
The official papers changing the name
Fidelity to Columbia were exhibited.
At this point the correspondence and
books OF the company were demanded
bv Mr.. Howard, and Mr.. Sommerville
went to get them. On his return half