New-York tribune., 1909-04-01
PRIEST OWES 81. 100000
VAS DIRECTOR IN p. J.
KEIR4N ENTERPRISE.
Father McNahon, of CleUeland, VOI-
untdry Bankrupt Through FjdeI-
ity Funding Connection.

Cleveland, March 31-The Rev William Nc
Mahon. pastor of ST. Bridgets Catholic Church
Cleveland, and editor of THE Catholic Uni
verse filed a voluntary petition in bankruptcy
in the United States Court here to-day. In the
petition his total liabilities are stated to be
Sl,394,l 64 with assets aggregatng $15,-
2oI 0S, of which 81 800 is real estate The Sc
cured claims amount to $946,925 73 unsecured
claims $371, ,207 81 and commercial paper
S1SJ91S
Father Mcmahon was director of the Fidel-
ity Funding Company OF New York. founded by
F. J. heiran and which now is in the hands of
receivers Thus it about that his name
was signed to many of the papers issued by the
company and for which he is now held liable by
the receivers.
The petition enumerates many notes signed by
Father Mcmahon. They are held mostly by
New York Pittsburg and Cleveland banks.
Among the larger secured claims cited are the
following: The Carnegie Trust Company, New
York, S2Sl,2I3 13. the Guarantee Title and Trust
Company. Pittsburg. S1s5.O0O; the Society for
Savings Cleveland, S235OO0. and the Third Ma
tonal Bank of Buffalo. 5000. Included in the
secured claims as filed by the petitioner are liza
bilites held by almost every banking institu-
ton of prominence in the city Of Cleveland and
similar institutions in Boston. New York Pitts
burg, Syracuse and Buffalo.
The petition enumerates a score or more OF
notes signed by Father McMahon, which
the basis OF claims. The dates on many Of these
are not given. but the petitioner admits his
responsibility both as maker and indorser and
includes them in his inventory of legal LA
biiities
The filing of the petition late to-day by J W
Sutphen. attorney. was not entirely a sur
prise, either in financial circles here or to the
ris e U-lJ ,Irb, had
for some time that the financial affairs Of
Father McMahon were in II badly entaugIed
state owing to his connection with the Keiran
enterprises
Father McNahor first came into close contact
with Keiran late in 1905. The latter was then
the moving spirit in the Reliance Life Insurance
Company and the Fidelity Funding Company,
both OF which were operated from Buffalo The
priest borrowed small amount Of money in
1905 from Keiran. who IS said TO have offered
him lower rate Of interest than that charged
by other companies engaged in a similar line
Of business
FRIENDSHIP WITH KEIRAN.
The friendship between the priest and tho
promoter grew to such an extent that the former
signed or indorscd the notes which now held
against him. and at the time or the failure OF
the Fidelity Funding Company ono of the
came in December last Father McMahon's deal
ings were supposed 20 extend only 20 the reor-
ganization Of the Euclid Avenue Trust Com
pany. OF Cleveland. in which he signed notes for
$4,000 His assets were ther, said not to OK
-eed $4,000
II was announced tonight by priest closely
identified With the affairs Of tho Cleveland do
cese that the liability set forth in the petition
in voluntary bankruptcy made by Father Nc
Mahcn tx personal and that the Catholic Church
property Is not involved that the Church
lose
The title to all Catholic Church property it
was explained in all parts OF the world is vested
in the archbishop of the diocese in which it Is
situated. and mortgages must he sanctioned by
the prelate I'm charge
1t was after Keiran had explained to Father
Mcmahon that it WIS his purpose to make tha
Fidelity Funding Company the chiet financial
agent of the Catholic Church in t-e matter "f
loans and mortgages that the priest became in
VOWED.
Father Mcmahon was confined to his bed by
illness tonight. and was unable TO receive
visitors P. ]. Brady. counsel for the priest.
made a statement for the latter. He said
The petition Leaks for itself. Father Nc
Mahon realized that bankruptcy was the only
course for him to pursue. SO he sought 1t. He is
an old man. broken in health. He was led
by the smooth talk of Keirar. in whom he
trusted The priest would sign any paper that
Keiran requested him to sign. For long time
Father Mcmahon told one of his entangle-
ments His friends warned him that they be
IIoved the deals in which he involved with
Keiran were not just right, but he would not
believe them"
Pittsburg. March 31--Robert J. Davidson.
president of the Guarantee Title and Trust Com
pany OF this city. said to-day:
Il understand Father Mcmahon Of Cleveland.
has flied a petition in bankruptcy in which he