Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-12-09
CATHOLIC CHURCH
LOSES HEAVILY
IN FAILURE
Receiver Finds Affairs of
Fidelity Funding Company in
Sadly Tangled Condition.
Outlook Bad For Creditors.


New York. Dec. S.-That the af
fairs of the Fidelity Funding com
pany, organized in 1899 to finance
Catholic building operations ant
which went into the hands Of a re.
ceiver a few weeks ago, are in an ex-
eeedingIy tangled condition, was as.
serted by Receiver Thomas F. Gil
roy, III, in a statement today.
According TO Receiver Gilroy, the
company's liabilities will aggregate
not less tnan $4.500, 600 with prac-
tiCally no assets, It's creditors include
fifty churches, s~eminaries, colleges,
and many priests and nuns. These
are located from the New England
states to oregon, Chief among the
company's creditors is st. Mary's
academy. of Nauvce. III. which Is in
VOWED for at least $500,0 600,
Il can not give even an approx
mate idea of the company's affairs at
this time said Receiver Gilroy, "as
some of the most important books are
missing. | understand former Presi-
dent Kieran of the company claimed
them as his personal property"
Most of the Company's loans were
to run for twenty years. In addition
to these loans the company also is
sued life assurances against the lives
of priests and nuns, The company,
it seems, also sold its bonds to rep
r~esentativcs of the Catholic church.
These are secured, according TO the
receiver by mortgages on property,
but how much may be recovered from
ource it is as yet impossible to
In addition to the funding COM
pany, President kieran also conducted
4 number of subsidiary companies. in
'luding the Columbia Construction
company, the Federal Construction
company, Mcbride studios company
md the Western Illinois and Iowa
company.
The authorized capitalization Of the
company was 5000, 900. OF this
mount not more than 500, 900 was
paid in. the receiver states.
he buyers Of the stock being for
ne most part priests and nuns. For
nor Secretary Of the Treasury Leslie
Shaw Is down on the company's
looks as having made a loan of $780,
to Kicran, and purchascd2$l0,O 600
If the company's stock.
The present head of the company
$ Duncan II. sill, and among the for
ncr directors were Father Lanigan,
lear general of the Buffalo diocese,
nd Father Fletcher, pastor of the
Baltimore cathedral.
The receiver says he win bring
uits -aggregating $500, 600 against a
If banks and financial in
titutions on the ground hat heavy
.onuseS were charged for loans made
o the Fidelity Funding company.
Bainbrodge Colby. of the law firm
+ Colby and Goldbeck, counsel for
,. j. Kieran. former presi-
cnt of the Fidelity Funding COM
any. issued a statement tonight in
.hich he said that there was no mys-
Fry AS to the whereabouts of Mr..
-icran. There has been no time re-
entity. he said. when Mr.. Kieran
ould not be reached by the receiver.
he statement says.
since the sudden application for
ne appointment of a temporary re-
aiver FOR the company some weeks
Mr. kieran has been occupied in
personal visits TO various
institutions in order to ex-
lain the condition of the company
nd the circumstances surrounding
he sudden and unexpected applica- F.,
for the appointment of the tenn :
Drary receiver, The application
as made under circumstances which
regarded a. a breach of faith |
certain banks and trust companies I
hich are creditors of the Fidelity !
company. and notwithstand- l
* the controversy which arose over ]
Ie appointment Of a receiver be /
the larger creditors and the I
-esident. officers OF the corporation.
r. kieran's effort to rehabilitste the I
'mpany and ecu all parties from
IS has been constant and untiring. ;
Nothing bur strictly home cooking