New-York tribune., 1909-01-29
KEIRAN RECEIVER WAR
ST4TE HE-4RfNG Gun
FLICTS WITH FEDERAL. .
Firancier. Examined Before Com
missioner Alexander, Tells Of
.4ssefs of Company.

.4ssefs Of Company.
--be x-a-Iofs proceedings against Patrick !.
Kairan former president, later and Legally sun
n5ee-president OF the Fidelity Funding Com
nsnv. Of No lis Broadway. have developer
into controversy between rival receivers hoO,
ert C Norris for the federal government anu
Thomas F Cyilroy for the State OF New fork-
Frank L, Crocker, OF No. Nassau street
counsel for Receiver Morris. knowing that
Keiran had been served by Receiver Gilroy WIZ
2 notice 10 appear for q hearing on january 90
served on Receiver Gilroy yesterday ailerIiooh q
no,ice Of admission that he TO proceed with
Keiran Tomorrow befors Referee Olney at inc
hour set for the hearing in thu supreme Couf I
Nr Gilroy at once geve notice TO MI Crocher
that II Kairan did not appear In the 0upreH4'
Court for the state hearing he would serve d
body attachment on keiran, which would o4IecI
the Sheriff 10 arrest Keiran and bring him INTO
court lie also wrote letter TO that erect 10
Keiran. Mr.. Crocker nevertheless refused 10
withdraw the notice OF admission
GILRoY ASKS PRECEDENCE
''neiran is appearing before Judge olney OF
his own voIition." said Mr.. Gilroy, "and my SUB
poena shovld take precedence. whether MI
Crocker intends TO do so not, his agreement
with Keiran protects Keran and vitistes the
order OF the Supreme Court. 1 tried for three
months AT great expense TO serve papers on
Keiran and / did not succeed in doing SO unIil
the other night. The difficulty is II take
heiran's default I may have TO serve MIN ah
over again. He may claim to be protected oS
Mr. Crocker's proceeding to bring him up oeIore
Judge Olney
When asked how much longer the proceedings
xould go on before federal or state jurisdiction
in this case would be determined, MI Giiroy
said: The statute defines tie jurisdiction OF
she federal court in bankruptcy proceedings 10
trading or mercantile corporations. According
10 innumerable decisions. the Ffoehty Funolhs
Company does not come under either category
for trading and mercantile corporations oeal IN
commodities and this company dealt IN notes
and mortgages which under the law are no'
commodities
..Tbe FEDERAL court can only declare the COM
many bankrupt and settle up the estate but
the state court can dissolve the company
Keiran knows that, and he knows that am
after him tooth and nail. Hence his Willingness
To appear in federal proceedings
Il don't care whist they do at such hearings
as they had before Commissioner Alexander
for they involve only keiran's personal ahalrs'
hut the proposed hearing before Judge Olney
Involves the Fidelity Trust Company, and that
is what am concerned with You see. there
sre three distinct proceedings two national and
one state"
LIABILITIES ABOUT s600oOoO.
4 When asked as TO the present estimate OF
assets and liabilities. Mr.. Gilroy said: THAT is
a hard thing TO say. Every day am hearing
of new notes that the company has out The
liabilities are about -S6.0o0Ooo; the free assets
are nothing: the nominal assets are S3,J0o,O0O,
but they mostly pledged"
From another source IL was learned that
Keiran owns II 600 shares of Security Life In
surance Company trustees certificates, and the
Fidelity Trust Company owns between 1900
and 15,o9 shares. II it could be made voting
stock it would have the voting control Of the
company. II is worth about SD share a
total Of S6-J0Oo0.
Il is understood that heiran plans to turn his
and the company's stock TO holding COM
pany together with $4,000 500 shares of Fidel-
fty Funding Company stock, the holding COM
pany TO pay for by assuming the liabilities
of the Fidelity Funding Company, which would
INCLUDE the liabilities for which the Fidelity
Funding Company stock is pledged. Then the
scheme is said TO be to deposit all that stock
and issue collateral notes against it. and raise
the money that to take up the debts. But.
as was said. such q scheme would be impossible.
for il would be like fellow trying hoist him
seif UP by his boot straps
CRoCKER EXAMINES KEIRAN.
At the hearing in personal bankruptcy brought
against Keiran before United States Connis-
sioner Alexander in the Federal Building yes
terday Frank L Crocker, representing the petit
ffoners in bankruptcy. examined Keirsn-
In answer TO Mr. Crocker's questions the wit
ness said he had existing bank accounts. He
had had accounts in various banks and trust
cornps nies in this city. Buffalo and Pittsburg up
TO last September. when he drew out the bal
snces-
Did you draw out all those balances about
the same time?" asked Mr. Crocker.
Yes" answered KeiTan.
The witness said he had sent his private books
20 his attorneys IN Buffalo. Mr.. Keiran said he
would produce the books IL his counsel so ad-
vised him. Mr.. Shire objected and the matter
was left II abeyanoe for the present.
The witness said he had considerable amount
Of personal property in various places. Most
OF II had been hypothecated in small sums, he
said There were 1eo shares Of the capital stock
OF the Federal Construction Company. OF Pitts
burg. This, together with other stock valued at
sfzS.ooo, put UP against loan Of $4,000
He said he had 1900 shares of stock OF the
Security Life Insurance Company deposited with
the Carnegie Trust Company Of this city to cover
q personal loan and also 500 shares Of windsor
Trust Company stock.
Mr. Keiran told of an attempt on the part of