The Marion daily mirror. (Marion, Ohio) 1892-1912, 1908-12-08
NUNS AND PRIESTS
Continued from Page One.

Continued from Page One.
exceedingly tangled condition, is as
serted by the receiver, Thomas f.
Gikoy, jr.
according to Receiver Giltoy, the
companys liabilities will aggregate not
less than $4y56O,COO, with pIaeslcal,y
b no assets. Its creditors include at
least churches, seminaries y tol-
leges and many priestsi and nuns.
These are located all over the Eoun-
try, from Nswo England states, to, Or
egon. ,thiei among the, conrpany's
creditors; IL st! Mary's academy, of
Nauvoo. M, which is involved for
at least $500, 900.
~ cannot give even an approx
mate idea of the company's affairs
at this time" said Receiver Gilroy,
"as some of the most important
books and papers, are missing. | un-
derstand that President Kierhn
claimed them as his personal prop
erty. His lawyer, cambridge Colby,
has promised to produce these books
and papers. :"
AS explained by the receiver, most
of the Fidelity Funding company's
loans were TO run for 20 years. In
addition to these loans the company
also issued life insurance against the
lives of priests and nuns. A rate of
interest ranging from to 0 per cent
was charged for Both loan and in
surance. 't ~
The Fidelity Funding company, It
seems, also soldiits bonds to repre- =
sentatives OF theinCatholic church.
These are secured, according to the
receiver, by mortgages on property.
but how much may be recovered from
this source II is as yet impossible
to say.
In addition to the Fidelity Funding
company Kieran Lalso conducted a
number of subsidiary companies.
These were the Columbia Con.truc-
tion company, Federal Construction
company, Mcbride Studio company
and the Western Illinois and Iowa
Railroad company.
All these, Receiver Gilroy declares
Tere financed by funds from the FL
deity Funding company, though in
no way allied, but are not asserted
to be involved in the Fidelity Fund
ing company's troubles.
The authorized capital of the Fidel-
ity Funding company was $4,000 900
and $2,500,000 surplus aOf this
amont not more than about 100000
was actually paid, the receiver states
the buyers of the stocll9o being for
the most part priests and nuns y For,
mer Secretary of the Treasury Leslie.
NJ. Shaw is down on the company's
books AS, having made II loaI5oG 500.
600 to Kieran. This Is secured Mr..
'Slay also purchased $4,000 of the
company's stock the books show
The present head of the company
is Duncan II. Sill, and among It's
former directors were the Rev. Mr..
Lanigan, vicar general Of the Buffalo
diocese, and Rev. Mr.. Fletcher,
pastor of the Baltimore cathedral
The receiver declares that he con-
templates bringing suits agregating
100000 against a number of banks
and financial institutions on the
ground that heavy bonuses were
charged for loans made TO the FL
deity Funding company. The re-
ceiyer also announced his intention
to proceed against other banks, which
he alleges loaned sums of money to
Kieran on collateral which belonged
to the Fidelity Funding company
y, Cleveland o., Dec. Statements
made here Monday that Catholic
churches in Cleveland would be In
yolved IN the failure of the Fidelity
Funding company of New York were
d inied later by church officials. one
church, st. Thomas Aqulnas, bof-
rowed $4,000 from Pittsburg bank
through President p. j. Kieran. The
church's transactions were with the
bank only.
Washington, Dec. S.--P. j, Kie-
ran, former president OF the Fidelity
Funding company, when seen last
night denied many of the statements
made by Receiver Gilroy in regard to
the affairs of the company. He said
the company, 1t will be found, has
surplus of $4,000 the assets amount
ing to $3,99OYOOO. and the liabilities
TO only $S5OO,0OO