Evening star., 1936-08-15
FIDELITY LOSSES
EXCEED S2lQ,ODO,
O'CONNOR THINKS
Controller of Currency Asks
Members to Present Proof
of Claims
$4,000 WAS SUM SET y
AT CLOSING JULY 18
Reorganization Is Under Consid.
Grafton, but Decision Awaits
Final Check of Assets.

Announcing that apparent losses"
Of the Fidelity Building & Loan Asso-
citation are in excess of $200,000."
Controller Of the Currency ]. F. T.
O'Connor today called on members of
the association to present their proofs
of claims" beginning Monday, Au-
gust "a, in order to ascertain more
definitely the real outstanding liabili-
ties Of the association. The last
financial statement of the association,
issued June 80, 1885, showed liabili-
ties to members of S1,863,655.
Reorganization of the association is
under consideration, O'Connor said,
but final decision on that or liquida-
ton cannot be reached yet.
When the institution was closed on
July l8 and put in the hands Of a
receiver, the only figure made public
as to losses was $4,000 named as
the amount of larceny" with which
Fred B. Rhodes, so, former president
Of the organization, was charged.
The amount "in excess Of 100000"
disclosed today for the first time, was
explained by the controller as the
figure reported by his examiner.
This amount is not f1nal," said
O'Connor, "and the extent of the
losses will not be known until a COM
plete investigation of all of the affairs
of the association has been made"
Rhodes Out on Bond.
Rhodes was arrested on a police war
rant the day the institution was closed.
and is at liberty on $1,000 bond. His
case has been continued in Police
Court to September 3. pending presen-
tation Of the matter to the grand
jury.
Rhodes was charged specifically
with obtaining $4,000 loan from the
Fidelity last November 8, through a
straw" party, and crediting the pro-
ceeds to his own account at the Fidelity
to meet an overdraft. The loan sup
posedly was made for use on a con-
struction project in the Guilford SUBJ
division, Fairfax, Va, according TO
Assistant United States Attorney
Henry A. Schweinhaut, at whose re-
quest the warrant was issued.
Rhodes denied the charge, saying
there is not a word of truth" in it.
Il have never taken dollar from the
association" he declared.
Members of the association were
asked by Controller O'Connor to file
proofs of claim beginning August "a,
but they will be notified by mail as to
the exact time to call. Details of how
to file these claims we're explained.
The controller in his statement said
a receiver, M. L. Barnett, jr., had been
appointed for the association lowing
to the fact that an examination of its
affairs revealed apparent irregularities
and losses which exceeded in amount
the profits and reserve accounts of the
association, and which, in the judg-
ment of the controller, rendered the
association insolvent.
AT the time of the appointment of
the receiver" continued OConnor.
the apparent losses reported to the
controller by the examiner were in
excess of 100000. This amount is
not final, and the extent of the losses
will not be known until complete
investigation of all of the affairs of
the association has been made.
Several plans involving the pos
sible reorganization of the association
(see FIDELITY, Page A-s)