Daily press. [volume] (Newport News, Va.) 1896-current, 1909-04-01
Accounts Badly Mixed.

NEW YORK, March 3l.-From in
formation gathered today In circles
familiar with the affairs Of the Fidelity
Funding Company. and p. J. kieran'
Il was learned that the direct liability
OF Rev. Father McMahone through the
failure of the Fidelity Funding Com
pany az appeared on the face or the
accounts, was only about $4,000.
1t was ststed however. tina: until
there had been a complete audit ana
comparison Of the companys books
and the private accounts OF p. }. kter
an for whom receiver In bankruptcy
had been named. 1t would be lmpos-
sible to ascertain the extent Of Father
McMahone's Obligations. Even then
Il was said it was doubtful II the ex'
act status of the account could be
learned as the transactions were in
yolved and hard to trace in their RANT.
flcations through the two sets OF
books.
Rev. William McNahone Is pastor
of st, Bridget's Catholic church. Cleve-
land, and editor OF the Catholic Uni
verse.
In the petition his total liabilities
are stated to be sl,59i.G4. with assets
aggregating $75.207.0S. Of which ST.
800 is real estate. The secured claims
amount to $946,925.73; unsecured
claims, $37l.2079l and commercial
paper $1S5.91s.
Director Of Fidelity Company.
Father McMahone was director OF
the Fidelity Funding Company of New
York founded by P. J. kieran ana
which now Is In the hands Of receiv-
ers.
The petition enumerates many notes
signed by Father McMahone. They
are held mostly BY New York. Pitts
burg and Cleveland banks.
Among the larger secured claims
cited are the following: Carnegie
Trust Company. New York. $2Sl,'
lists; Guardian Title and Trust Com
pany, PittsEurg. $1S5,000. Society for
Savings, Cleveland. s235.s0O: Third
National Bank Of Buffalo. 5000.
Relations With kieran.
Late In 1905 Father. McMahonc
came first into close contact with
Kieran, who Is said to have Offered
him e lower rate Of interest than
that charged by other companies en-
gagged in a similar line Of business.
The friendship between the prizes,
and the financier grew to such au ex-
tent that the former signed or en-
dorsed the notes which now are held
against him. when the Kieran crash
came in December last Father McMa-
homes dealings were supposed to ex-
tend only to the origin Of the Euclid
: Avenue Trust Company OF Cleveland
In which he signed for about $35.U00.
HIS assets were then said not to ex-
coed $4,000.
Church Property Not Involved
It was announced tonight authori.
lively from a priest closely identi-
fed with the affairs Of the Cleveland
diocese that the liability set forth
IN the petition in voluntary bank
ruptcy made by Father McMahone is
personal. and that the Catholic churci,
properly Is not involved In a way
that the church can lose. Title 10
all Catholic church property. II was
explained. in all parts of the world Is
yes,sd in the archbishop and bishop
Of the diocese m which II Ia located
and MORTGAGES must be sanctioned by
the prelatc In charge.
II was after KieraE had explained
TO Father McMahone that II was his
purpose to make the Fidelity Funding
Company the chief financial agent oil
the Catholic church In the matter ol
loans and mort cages that the priest
became involved
J. r. Madiean. a; that time AMI
s.iE co-nt2 treasurer also was drawn
into the Kitran financial schemes and
sisne! several notes on the strength