The evening world., 1909-02-04
KE|RAN HELPED
HIS C.NCiRN He
TELLS RECEIVER
Fidelity Funding Unable to
Borrow Unless He Endorsed
Paper, He Says.
NEVER USED ITS FUNDS.
Claims Charges Against Him
Are More Than Offset
by Credits.
NEVER USED ITS FUNDS.

Patrick ]. Kelran, the much examined
former head of the Fidelity Funding
Company. submitted TO a three-hour
session before State Receiver Thomas F.
Gllroy this morning at the old offices OF
the Fidelity Funding Company, No. a
Broadway, where the receiver Is now In
charge.
The line Of questions put by Mr.. Gilroy
were calculated to bring out the exact
relations between keiran personally and
and the Fidelity Funding Company, OF
which he was the acting executive. and
are pretty well summed up In the fol-
lowing question. which was put by Mr..
Gilroy and answered by Ke!ran:
Did you ever buy any stick. bonds or
notes for your personal account for
which you used or borrowed funds OF
the Fidelity Funding Company" and
The answer came quick and sharp:
II used no funds Of the Fidelity to
pay for any stock or any interest what
ever In any trust company, bank, insur-
ance company or any kind Of q concern,
nor did l ever borrow any money or
securities for such purpose from the
company. The shoe was on the other
foot; was continually lending the COM
pany stock. money and credit to further
the company's interests"
Endorsed It's Notes.
Further inquiry along the line of the
Fldelity's credit brought out the answer
that many times the company had been
unable to secure credit on its notes and
other securities unless they were per-
sonally Endorsed by ke!ran.
Then GIlroy wanted TO know what had
been the extent Of Keran's line OF credit
before he became associated with the
Fidelity Funding Company. and Keiran,
even before his lawyer had objected,
fired back the reply: Il don't think
that's any Of your business Mr. GIlroy."
AS to his personal transactions with
the company, ke!ran said that he had
made practice OF discounting paper
which the banks would not accept from
The Fidelity company without his per-
sonal Endorsement. In that way, he de-
clared, there had been a huge total OF
charges against him on the Fidelity's
books, but they were more than bal
Anced by the credits when the cash was
received on the notes nd turned over
ito the company
In fact the balance now" he said
a nd In IN
me money
What H.. WINS.
Mr.. Gilroy asked whether he had the
authority to negotiate for cash on F.
deity paper, as he had just described.
and keiran answered:
II had the general authority TO use or
negotiate for any funds that were TO
be used in the companys business"
Replying to some queries as to his
personal holdings. Mr. Kelran enum-
Grated the Nauyoo Water Works, Of
Nauvoo. H.. the Federal Construction
Company, the Columbia Construction
Company, and the Simplex Telephone
Company, as concerns which he either
owned entirely or in watch ne held
stock.
In the Three Rivers Gas Company,
OF Three Rivers, Quebec, Mr.. keIran
said he owned some small amount OF
stock. but that 1t vas pledged, and
then his counsel. Moses Shire, Of Buff
falo, objected TO any further questioning
along the lines OF Kelran's personal as
Sets.
The hearing was adjourned to next
Thursday