Evening star., 1937-03-11
CLAIM Of RHODES
IS DENIED BY |RR
Fidelity Depositor Says He
Did Not Tell Official to
Use Account.

District Court today the defense con-
tention that he had thrown open his
account at the Fidelity Building and
Loan Association to aid Fred B.
Rhodes, former president of the in
stltution. charged with forgery.
The case against Rhodes is built
on $500 withdrawal slip charged
against IRIS deposits at Fidelity in
series of transactions the defense says
was necessary to keep the association
gong in the face of fight by the
controller Of the currency
Recalled to the stand as a rebuttal
witness by Assistant United States
Attorney John J. Wilson after Rhodes
mac testified Irr pledged him his aid
IN F1dellty's troubles, Irr disclaimed
doing anything of the sort. He stuck
10 ms story under cross examination
by William E, Leahy, chief of defense
counsel.
Trial Nearing Close.
AS ne left the stand the Government
began the introduction of a number of
exhibits paving the way for final argu-
ment. There is chance the jury will
get the case sometime this afternoon.
although it may 60 over until tomor-
row morning
The $1,000 withdrawal slip was
dated February IA, 1886, about a week
before Rhodes resigned from Fidelity
and approximately four months before
the institution was closed.
When Irr was recalled today Wilson
asked him the date when he first knew
of the withdrawal slip and he said,
as he had previously testified, that it
was March 4, 1896.
The prosecutors, referring to pre-
vious testimony, asked the witness If
at any time he had told Rhodes that
he (Irr) had had a good account in
the Fidelity" and also mot to hesitate
to call on you"
Il did not" the witness said.
Similar Answers Given.
"On March 4, 1885, in your CONVEX
satlon with Mr.. Rhodes, after he told
you about withdrawing certain sums
from your account, did you tell him
to Go ahead, 1 told you to do it?'" 4"
Wilson asked
mo. did not" the witness empha-
sized
Similar questions of the same nature
drew the same response
In starting his cross-examination
Leahy attempted to refresh the witness
memory about conversations he re-
putedly had with Rhodes some wears
before when Fidelity was in trouble
with the controller and Irr was said
to have pledged his aid to Rhodes.
Ihe witness insisted no such CONVEX
satlon took place
remember one thing-I didn't give
anybody any authority to use NV
money" he said.
Rhodes on Stand Again.
Rhodes took the stand yesterday
and was brought back this morning
Tor examination by his own counsel
ana repeated his testimony that he
mad not profted lone cent" from the
transactions at Fidelity.
Again he blamed the controllers
Office for closing the institution last
July, saying that at first the controller
mad ordered a dividend declared and
that when this was done he had de-
clared the institution insolvent.
Later in his testimony he said the
dividend was ordered by 1. L.
Chorpening, chief national bank ex-
amlner. When the directors sought TO
cancel the dividend, the controllers
office refused to allow that, according
TO the witness. He then told of an
effort to keep the Institution alive by
pledging $4,000 of his own holdings
This plan did not materiahze.
fireworks marked Rhodes appear
ance yesterday. At one time Leahy was
rebuked for "impertinence" by JUS
tice Peyton Gordon, presiding, as he
sought to develop the close relations
between his client and Irr.
Rhodes and Wilson Tanele.
Later Rhodes and Wilson tangled
when the former Fidelity head ac-
cused the controller of the currency
OF keeping Fidelity closed because Of
'his fight on me-"
A bookkeeping maze was disclosed
IN the Governments cross-examina-
ton designed to tie up the withdrawal
slip with an overdraft of Rhodes. So
much SO that Justice Gordon admitted
that he had become confused in at
tempting to follow the various trans
actions.
The troubles of Fidelity, it was
brought out, revolved principally
around a determined fight to keep
open six branches in which there was
property investment Of $4,000, in
the face of efforts to close them by
the controllers Office, which would
not allow these holdings to be con-
sidered as assets.
Admits Charges" to Accounts.
Admitting there had been charges
mace against the accounts of Gus
toners other than Irr, Rhodes said
II was necessary to do this to keep
the institution from going under.
There never was a dollar with
drawn greater than the amount of
real estate held" Rhodes replied to
question by Justice Gordon as to the
right OF any officer of Fidelity to
switch accounts about He contended
this was lawful
Recalling that Rhodes had said he
assumed he had the privilege of max
ing charges against IRIS account.
Wilson asked the witness if he had
obtained the same authority from
other depositors
Some I did and some l did not"
he said.
Not one cent did I profit, either
directly or indirectly-not one single
cent - Rhndac insic4od