Evening star., 1939-03-29
Records Offered
In Evidence
Against Rhodes
% Accounts Were
Withheld, Is Claim
Of Prosecution

The perjury trial of Fred B.
Rhodes, former president OF the old
Fidelity Building and Loan Associa-
ton, continued to move through a
mass of records in District Court to-
day as the Government sought to
prove that the accounts of % de-
positors were withheld from the
routine bookkeeping channels of the
association to cover up a discrep-
ancy of approximately SIT 900 in re-
port to the Treasury covering the
condition of Fidelity as of June 80.
1885. The perjury charge is based
on the allegation that Mr.. Rhodes
sWore to this report.
Through D. Tull Ryall, former
head bookkeeper of Fidelity, which
was closed in July, 1896, Assistant
District Attorney John j. Wilson
brought out that these accounts did
not show up in the regular dividend
schedules of the association for as
far back as June 30, 1888.
Dy lIAS ooAAAC W1tllCOS ltll w
showed that sums credited to an
account in Mr.. Rhodes name
conceded with amounts appearing
in the passbooks of these depositors
on the same dates. The reason for
this line of questioning was not
brought out.
CrOsS-ExaminatiOn Starts.
William E. Leahy, chief of defense
counsel, took over the witness for
cross-examination just before the
midday recess.
Citing two Of the deposits which
had been brought into testimony
by the prosecution, Mr.. Leahy asked
If they had ben credited on the
ledger sheets of the association, and
the witness agreed they had The
counsel asked further if there was
anything irregular you can find so
far in the procedure, and the wit
ness said, Not on the surface" Mr..
Ryall also said in answer to
question that he had not known of
any depositor complaining of
shortage in his account.
1t was brought out yesterday as
the trial started before Justice Jesse
c. Adkins that these ledger sheets
were turned over to representative
OF the association by Mr.. Rhodes
four months after he had left the
presidency in 1886.
Mr.. Ryall, now head bookkeeper
at the First Federal Savings & Loan
Association, successor to Fidelity,
which closed in July, 1896, identified
these sheets and also dividend
schedules for the june period.
Turned Over on Request.
The ledger sheets, it was brought
out, came to light in June, 1886,
when they were turned over by Mr.
Rhodes to Harry ]. Miller, a direc-
tor and vice president. who said he
asked the former official "for any
records that would help us find
out the status of the association"
Mr.. Miller explained that he was
moved to make this request be-
cause he had a "hunch' that there
was something unusual going on
at the Fidelity because examiners
were buzzing around there every
day"
Mr.. Miller turned the records
over to I. I. Chorpenning chief
national bank examiner. who also
was an identification witness YES
terday.
Separate Records Claimed.
In his opening statement, Mr.
Leahy who, with William B. Rich
ardson. is conducting the defense,
justified the report on the ground
that the controller was refusing to
allow Fidelity to show $4,000 in
property holdings in six branches
as assets. and that this would have
caused the association to reflect A
deficit instead of surplus. He in
sisted the evidence would show that
separate record had been kept
OF every transaction attacked bv
the prosecution.
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