New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-22
'F|DEL|TY'S HEAD ATTACKED.
Creditor BIames keiran for De-
lay in Winding Up.
BIG ASSETS ALSO ALLEGED
Bank of EarlviIle, N. Y, Begins
Proceeding to Execute It's
Judgment.

The First National Bank, of Earlville,
n. Y, a judgment creditor of the defunct
Fidelity Funding Company for s3.2oS o.
obtained yesterday from Justice Mccall an
order directing Frank Hendrick, receiver
of the company; Attorney General O'Mal-
ley, the directors of the company and the
10 creditors to show cause why the order
atcsolving the company should not be
vacated. The order is returnable on June IL.
The bank seeks permission to proceed with
the execution on its Judgment.
CIV H. Clark cashier of the bank, sub
mits an affidavit based largely on infor~
nation and belief. In which he opposes the
voluntary dissolution Of the Fidelity Fund
ing Company. he says that no effort has
heen made to reduce the outstanding as
sets of the concern to the possession OF the
receiver The cashier declares that these
assets were set forth IS amounting 10
81 $40 01O and that the receiver has reduced
TO possession less than $4,000. He ADDS
that the attorneys for the Fidelity Funding
COMPANY are the same as those Tor the
Windsor Trust Company. which had extern
sive dealings with the Fidelity company
and that the Windsor held collateral oe-
posted by the Fidelity. Clark says that
there are also certain subscription agree
ments to stock of the Fidelity now IN pos
session Of the Carnegie Trust Company
which LAYS title as security for loans ana
,1pon which there is due $3.50, 900. Clark
believes that the Fidelity company mas
equitable interests in these. The Carnegie
and Windsor companies also have notes.
he declares, originally belonging TO the
Fidelity and delivered to them for collateral
in which, the deponent alleges. the detuncl
company has interests. According to CLARK
the receiver has made no effort to enforce
the subscription agreements:
Clark goes on to say that Patrick j.
Keiran formerly president and later vice.
president of the Fidelity, is now in Europe
and has evaded service. The bank Official
adds that he learned that keiran, who was
the chief figure in the Fidelity company
was trying to rehabilitate his financial az
fairs by enisting capital in the promotion
of an enterprise similar to the Fidelity.
He understood that he was also trying 10
realize on notes of various Cathohc lnsttu-
tions. Clark says that the receiWr Is en-
titled to these notes.
Clark makes also this allegation:
"Keiran by his wiles, devices and dila-
tory practices caused the receiver and
creditors of the Fidelity Funding Company
to believe he would, if given time, rehabili-
tate the affairs of the company, relieve
himself from bankruptcy and pay the cred
itors of the company. The receiver and
creditors have delayed. therefore, the wind
ing up, Keiran using the court proceedings
and order to protect him from the enforce
ment of the lawful demands of creditors
by deliberately and maliciously misleading
the receiver and creditors
Justice Mccall granted the petitioner per
mission to serve the 10 creditors by publ
cation, because of the impossibility of serv-
ing them all personally.