Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-11-28
The Condition Of the Fidelity Officers
Now Under Arrest.
What LED TO THEIR PROSECUTION
Evidence Claimed by the Pittsburg
Chief of Police.
A T AK WIT n W A l. L
STAFF Correspondence Of The Evening Star.

Stan Correspondence Of The Evening Star.
PITTSBURG. November q, 1894.
The case against the officers Of the FL
deity Building and Loan Association, which
will 90 given a preliminary hearing tomor-
row morning, looks serious for the gentle
men who are now behind the bars at the
central station in this city, as well as for
the one or two included in the charges
who have secured bail. So far as the real
issues in the matter are concerned, 1t is
a question which one must settle In his
own mind, whether or not the methods OF
business pursued by the Fidelity Company
and kindred organizations are honorable
or not. That they are permissible under
the laws Of the District Of Columbia has
been decided in the suit brought against
the Fidelity people by many Of the certif-
cate holders in the company, and dismissed
by Justice Hagner last year. That they
will be found so under the laws Of Penn
sylvania is, at this writing, doubtful. There
Is no question about the fact that an ex-
tremely bitter feeling exists among the
people and legal authorities In Pittsburg
against the prisoners. While 1t IL now gen.
orally believed that Mr.. Dingman was not
aware of any Of the alleged crooked deal
ing INDUCED in by the representatives OF
the Fidelity Company here, there Is still
a strong resentment against him for allow
ing himself to be associated with COM
pany whose methods and practices he was
not entirely familiar with In every detail
and particular. For Mr.. Andrew Wall, and
the others, who were Immediately in charge
of the local office of the Fidelity Company,
the sentiment Is unrelenting and indig-
nant. So far nothing has been said about
the evidence which the prosecution will
bring forward to substantiate the grave
charges of conspiracy to defraud.
From what I learned Of 1t tonight 1t
will be Of powerful import to a jury com
posed OF men who are intensely angry at
the revelations regarding blind pools"
discretionary pools and other devices Of
individuals, which have been
successfully used to defraud hundreds of
the poorer people in this vicinity of their
hard-earned savings. 1t Is just such evil
dence, or testimony rather. which will
eerve to further increase public hostility
to all Institutions. no matter how deity
their charters may be drawn to keep with
in the letter Of the law, and to blind tho
senses Of the Jurymon to any other INTEL
iigence than that which inspired the
Mosaic law. Perhaps it will all be brought
out at the preliminary hearing tomorrow.
but the probabilities are that the accused
will waive q hearing. But q jury will
eventually hear 1t anyhow.
What Started the Prosecutions.
The attention Of the local police authori-
ties was first directed to the operations of
the Fidelity and other foreign corporations
of similar character doing business here
by the revelations spoken of above In con-
nection with various swindling institutions
that have been made in Pittsburg during
the past month or six weeks. Chief Roger
OMara, brawny and brainy, with q hatred
of anything deceptive or fraudulent, made
an examination Of several companies and
discovered what he thought to be loose
practices in the conduct of the local Office
of the Fidelity Building and Loan Associa-
tiOn. Several holders of certificates in the
association were questioned by his repre-
sentatives and their stories led him to
suggest to them the propriety of filing in
formation against Messrs. Dngman and
Wall, the chief officers of the company, and
Messrs. Mitchell, Henry and others en-
ployed in the Pittsburg branch. Armed
with warrants issued from such informa-
ton O'Mara began to work. He knew
that Messrs. Dingman and Wall were here
last week in attendance upon the meeting
Of the Mystic Shriners and waited until
they visited the branch office of their COM
pany. Then the arrests were made. An
examination of the office, 1t is said, and the
statement will come out in the testimony,
showed that no system of books was kept
other than a day. book. which was in
charge of a small boy. This book merely
showed the amounts taken in and, it is
stated, contained at the end Of each week
statement OF the total amount used for
expenses, the balance, IL any remained
from the receipts, being sent to the main
office in Washington.
The boy who Kept this day book will be
an important witness. 1t is said that he
VIII testify that men were employed as
agents to drum up customers among the
poor and ignora.t people of Pittsburg. who
were supposed to be peculiarly open to the
attraction of any proposition that prom
lsed large return for very little out
lay. These agents" were paid So for each
person they induced to subscribe to a GER
tifcate. 1t Is alleged that testimony will
also be given to show that men were also
employed by the Pittsburg agency to visit
the persons who had subscribed for the
certificates and collect the weekly or
monthly dues from each, and that these
collectors were paid no less than 10 per
cent or the amounts they turned In for
their labor. The authorities believed that
an institution doing business on this plan
could not possibly be in a position to re-
deem Its promises to its patrons when their
maturity was reached, but they looked
carefully through the effects Of the branch
any securities or any evidences of loans
having been made, from the proceeds of
which the certificate holders might even
tually receive what they expected and had
been promised: Absolutely nothing of the
sort was found. Further investigation de-
veloped the fact that there were hundreds
OF humble persons here who had invested
In the company, many of whom had lost
their investments through their failure or
inability to make the regular payments
necessary to continue the contract entered
into. Chief O'Mara told me tonight that
he was convinced the Fidelity Company
was conceived and that 1t had always ex-
listed In fraud, and that he had no doubt
of his ability to convict all the defendants
End secure their severe punishment
What Chief O'Mara Says.
1T is not persecution. as Mr.. Wall seems
to believe so fondly," said the head of the
police. I'VE are only doing our
duty as 1t appears to us. There is no plot
back Of 1t. / see that Mr.. Wall affects to
believe that he is the victim Of a conspir-
acy entered into by Catholics who wish to
ruin him, because they believe he belongs
to secret societies which hold the Cath
olics as enemies. That Is too ridiculous to
be considered We believe, and l am sure,
that Mr.. Wall and his associates have been
defrauding our people in a
systematic way. If the accused men can
bring forward any securities they hold, or
proof of any investments they have made
by which the people who have placed their
money in their hands can be assured of
their immunity from loss, there will be no
further proceedings. But / am sure they
can't DO 1t in spite of the abundant oppor-
tunity that will be given them. They can
not have any such property. They retain
the right in their charter and contracts to
use 80 per cent Of the gross receipts for ex-
penses. and no honest company, in my
opinion, would do anything of the sort. Mr.
Wall and the others will have to clear their