Evening star., 1939-04-05
Rhodes Trial
Arguments
AreBegun
Case May Be Given
District Court Jury
Late Today

Launching closing arguments III
the perjury trial of Fred B. Rhodes,
former president of the Fidelity
Building & Loan Association, AS
. sistant United States District At
p torney John J. Wilson today told a
District Court jury that Mr.. Rhodes
\ admission of irregularities of book
keeping at the institution made 1t
inconceivable that the elderly de-
fendant did not know of the falsity
of the report to the Treasury to
which he sWore and which forms
the basis of the indictment on which
he is being tried The report COW
cred the condition as of June 80
1885. of the Fidelity, which was
closed 13 months later.
He knew unless it was specifically
guarded against that the report
necessarily must be false Mr. Will
son emphasized in asking for a con-
viction. He pointed also to Rhodes
. testimony that he had dominated
the policy of Fidelity.
Mr.. Rhodes on the witness stand
yesterday had admitted manlpulat-
ing items in the accounts OF % de-
positors which the Government
charges were withheld from the 1885
report and said also that he had
" <concealed records from bank eX-
aminers on their periodic inspection
visits
The closing arguments were
started lust before noon after cOun-
sci had devoted much of the morn
y ing to arguing over instructions to
be given the jury. There was
possibility that the jury would get
the case late today.
Responsibility for the figures IN
the 1885 report already has been as
sumed by Mrs. Ruth S. Horner,
I former assistant secretary and as
sistant treasurer of the Fidelity.
Kept From Examiners.
The Government charges the ac-
counts of the % depositors were not
reflected in the report, and While
Mr.. Rhodes, under cross-eXamlna-
ton by Assistant District Attorney
Wilson, admitted he had kept rec
ords on these accounts from bank
examiners OH periodic visits to
Fidelity, he insisted he had directed
that the reports to the Treasury
be correct.
"You say you always warned Mrs.
Horner to have reports to the con-
troller correct?' Mr.. Wilson asked.
Yes was the reply.
But you wouldn't hesitate to
, conceal records from the controller S
agents?' the prosecutor pressed.
The witness said he wouldn't, and
added at another point that he had
no more compunction in withhold
ing these records than II he were
keeping them from bandits
I'VE looked on these men as
bandits" he said.
Tells of Harassment.
Earlier. under questioning by hls
own counsel, William E. Leahy, who
is conducting the defense with Will
liam E. Richardson, Mr.. Rhode!
had repeated a story OF reputeo
harassment of Fidelity by the con-
tro,ler of the currency. which hao
handicapped its operations materl-
ally. The withholding of % ac-
counts was justified by the defense
on the ground that the controller
was not allowing credit for certain
assets and that this was a book
keeping device to permit the lnstl-
tuition to make a showing OF SOL
vency. Independent records main
tanned by Mrs. Horner kept IN
proper shape the accounts OF the de-
positors involved. it was said.
A number of character witnesses
were brought on as the testimony
, was ended and then Mr.. Leahy
made a motion for directed verdict
which Justice Adkins denied. 1t
was the second motion for a verdict
the court had turned down.
Mr.. Rhodes has been tried twice
before on charges growing out OF
the closing of Fidelity. Alleged for
gerry was the basis for the other
trials in which the juries disagreed