Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1908-12-11
OWESCHURCH S4,OOQ,OOO
CATHOLICS MAY SUFFER BY COL
LAPSE OF FUNDING COMPANY.
Leslie Shaw Says He Is Creditor for $780,
900, but Unfortunate Societies
Are Debtors.

PHILADELPHIA Pa, Dec. S.-For-
mer Secretary Leslie Shaw, who is pres
ident of the First Mortgage Guarantee
and Trust company of this city, admit
ted today that the Fidelity Funding
company of New York owes him $780,
600. Said Mr.. Shaw: my loans are
fully covered by bonds which are as
safe as the bond of any government on
earth and margined with additional
notes at nearly 100 per cent. l think
the same is true with most and very
likely all the banks and insurance COM
panies.
Some of the papers have spoken of
the st. Mary's Academy Of Benedlctne
Sisters and the Sisters of Visitation and
other Catholic societies and institutions
as creditors. Unfortunately, these So
cieties are debtors. The banks, insur-
ance companies, and private individuals,
are the creditors.
''An effort was made a year ago to
increase the capital of the company to
something over 100000 and some sub
scriptions were made Il was one of the
subscribers on condition that the full
amount should be raised. This ought
to have been done, as the proposition was
all right, if properly handled.
"a monsignor of the Catholic church
told me that he had known Mr.. Kieran
for years and had never known more
upright gentleman or a man with higher
ideals. In my Judgment there is but
one thing for the church to do. Just as
soon as the several bishops whose do
ceses are involved come to realize the sit
uation they will undoubtedly get togetk-
er, appOrtiOn the loss between them and
pledge its payment. They will then have
no difficulty in getting the necessary
financial aid.
eff each church and society will pay
the legitimate debts they have contract
ed, the actual loss will be comparatively
small, possibly 100000 or 100000,
which is a bagatelle compared with the
value of a record of 1000 years without
financial scandal or a reputation"
Financial adventures rivaling those of
Cassie Chadwick, which involve the
losses of millions to Catholic churches,
church sisterhoods and brotherhoods. and
individual priests, was brought to light
by the investigation of the operations OF
7. j. Keirin. former president of the FL
deity Funding company. now in the
hands of a receiver in New York.
These exposures have come in connec-
ton with the recent failure of the Euclid
Savings and Trust company whose down
fall was directly traceable to keirin and
his associates in the east. Aside from
the failure of the Euclid avenue bank
loss of more than 100000, it is declared,
Will Ian UPON 81 1LOIldS
church, it having been victimized to that
extent, according to Thomas S. Gilroy,
Jr., receiver of the Fidelity company.
These losses to churches, congregations,
nuns, monks and priests throughout the
country are alleged to have been caused
by the shady transactions involving the
raising of the face of notes, the hypothe-
cation of notes already renewed, and in
other ways.
In Chicago, Pittsburg, Dallas, Tex,
Des Moines, Buffalo and in many other
cities even up into the state of Wash
ington. administrators Of church funds
and the pastors of congregations are
mourning for the missing Fidelity Fund
ing company through which they had
sought financial aid
The liabilities of the concern, accord
ing to the receiver. amount to $4,00O,0OO.