Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-28
K|ERAN HAS PROPERTY.
Stocks All Hypothecated as
Security for Small Loans.
HE is EXAMINED IN COURT
Tells of Attempt to Get Control Of
Trust Companies.
HAS HEAVY LIFE INSURANCE
Willing to Produce His Private
Books, But His Counsel Objects
and Demand Is Held Up.

NEW YORK, January 2S.-Patrick j.
kieran former president Of the defunct
Fidelity Funding Company, was wit
ness in the bankruptcy proceedings
against this company before United
States Commissioner Alexander here to-
day.
1t was the first time the authorities
had succeeded in getting Kieran into
court since his disappearance after the
involuntary failure Of his company for
about $5,O00,0OO. The creditors include
a score OF prominent Catholic institu-
tions scattered throughout the coun-
try.
Through testimony given by Kieran's
private secretary, William B. Arundel.
yesterday. 1T was learned that books and
records Of the Fidelity Funding Com
pany and Kieran's private books and
papers had been placed In safe deposit
vaults here. Their production at the
hearing today was directed.
Objection Is 0verruled.
Frank L. Crocker, representing the pc
titioners in bankruptcy. examined Kie-
ran. Moses Shire of Buffalo, counsel for
the defendant, offered a general objec-
ton to the examination, but was over
ruled.
In answer to Mr.. Crocker's questions
the witness said he had no existing bank
accounts He had had accounts in va
city, Buffalo and Pittsburg up to last
September, when he drew out the bal
ances
Did you draw out all these balances
about the same tlme?' asked Mr..
Crocker.
Yes" answered Kieran.
The witness said he had sent his pri-
vate' books to his attorneys In Buffalo.
Mr.. Kieran said he would produce the
books If his counsel so advised him. Mr..
Shire objected and the matter was left
in abeya ance for the present.
Kieran Has Property.
The witness said he had considerable
personal property in various places.
Most Of it had been hypothecated in
small sums, he said.
There were 100 shares Of the capital
stock Of the Federal Construction Com
pany Of Pittsburg. This, together
with other stock valued at $4,000, was
put up against loan Of $4,000.
of the Security Life Insurance Com
pany deposited in the Carnegie Trust
Company OF this city to cover q per-
sonal loan. and also 500 shares of tho
Windsor Trust Company stock.
Mr.. Kieran said the Windsor Trust
Company had several hundred thousand
dollars worth Of bonds Of the Fidelity
Funding Company and other collateral
stock in excess Of loans which the
trust company had made him and in
which he had property interest.
Trust Company Negotiations.
Mr.. Kieran next related an attempt on
the part of the Fidelity Funding Com
pany to secure control of the Windsor
Trust Company Of New York. He said
the Carnegie Trust Company and the
Hanover Bank had refused to make fur
ther advances of cash to the Fidelity COM
pany and that the Carnegie company had
already advanced considerable money to
Kieran on collateral.
The securities which had been put up
included a note Of $4,000 Of st. Mary's
Academy Of Nauvoo. H., and notes Of St
Joseph's Academy OF Milwaukee and other
institutions.
anxious to get control Of the Windsor
Trust Company, because it would give
them credit with which to further the
affairs Of the Fidelity Funding Company
Messrs. Otis and johnson of Chicago,
who were interested in the Fidelity
Funding Company the witness said.
were connected with him in the at
tempt to purchase the Windsor. They
were in need Of $jOO.OOO.
They had obtained notes and securi-
ties to the value Of $55O.O0O, when it
was decided to try also to consolidate
the Windsor Trust Company. tho EN-
pire Trust Company and the United
States Mortgage and Trust Company.
But this plan failed for lack Of ready
cash.
kieran said he had given 600 shares
of the Fidelity Life Insurance Company,
worth more than par. and his personal
check for $4,000 to the Windsor Trust
Company, which, he added, now refused
to return his collateral or cash.
The witness said he had several thou
sand dollars worth of stock in the
Western Trust and Savings Bank of
Chicago and the United Empire Bank of
Toronto and carried life insurance for
$1l5,OOO.