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WANTS TO SEE KEIRAN RECEIVER SEEKING HIM. Company's Liabilities $1,500,000 More than Assets, He Says. Thomas F. Gilroy, jr., receiver for the Fidelity Funding Company, whose suspension has inconvenienced so many Roman Catholic convents, schools, colleges, churches and individual priests and nuns, said yesterday that he would like to find some trace of the $400,000 surplus which P. J. Keiran, the company's former head, says exists. "From my present figures." said Mr. Gilroy. "the liabilities of the company are something like $1.500.000 more than the assets. Lieutenant Funston, in charge of the detective bureau at Police Headquarters, received last night from Police Chief McQuade of Pittsburg a request he that Keiran be arrested if found in this city, as is wanted there on a charge of grand larceny. Mr. Gilroy would also like to have Mr. Keiran return to this city and tell in court for the benefit of the company's creditors what he knows of the disposition made of the assets. Mr. Gilroy says he can prove that certain bocks of the company were removed from the offices just at the time of the receivership. although Mr. Keiran maintains that he never kept any books William Nelson Cromwell. it now develops, has been asked by certain prominent Catholic clergymen to take a hand in the company's affairs and try to rehabilitate and reorganize the business At the offices of Sullivan & Cromwell it was said yesterday that Mr. Cromwell had the matter under consideration, but had come to no decision as yet Mr. Keiran, it is reported. has been visiting the creditors of the company ever since the suspension and asking them to sign a sweeping power of attorney in favor of Mr. Cromweil. These powers of attorney give the right. it is understood not only to rehabilitate the finances of the Fidelity Funding Company but also to take over the affairs of the Federal Construction Company and the Columbia Construction Company, two subsidiary concerns in which Keiran was largely interested. Keiran's personal affairs are also to be overhauled and straightened out. It is understood that several of the creditors have signed the powers of attorney. Mr. Gilroy intimated yesterday that there would be some interesting disclosures when he filed his suits against several local banks and trust companies charging them with accepting large bonuses for making loans to the Fidelity Funding Company In one case the receiver said that the company had paid a bonus of $50,000 to obtain a loan of $135,000. He would not make public the names of the banking institutions which he intends to sue non would he say whether there were any national the list. He is confident he will be able to banks recover in close to $500,000 which has been paid out in bonuses The receiver is also anxious to discover the whereabouts of Mrs. Lorena W. Davis. who was private secretary to Keiran. Mrs. Davis, accordinz to Mr. Gilroy, had an active account with one of the banks with which Keiran did a large part of his business Mr. Gilroy has a court order for the examination of Mrs. Davis, but she has not been seen since the company suspended H. H. Van Dusen assistant secretary of the Fidelity Funding Company, and Keiran's right C. L hand man. has also disappeared, as has Boyce another of Keiran's confidential men When asked whether he believed Keiran had profited personally by his operations, Mr. Gilroy said: 'There is a discrepancy of about $1,500,000 as shown on the books of the company which remained in the offices I believe that Keiran was no fool. but further I do not care to discuss that matter. "In insuring the lives of those with whom he did business Keiran secured commissions from the insurance companies. and these commissions and the commissions which he expected to collect for twenty years he put down as an asset. "Keiran did not confine himself to Catholic institutions alone There appears on the books of the company the information that the Fidelity Funding Company did business with the Loraine Street and Dennison Land Company of Cleveland This company is among the creditors. Keiran also operated through an account which was opened in one of the local banks in the name of W. B. Arundel, who was employed by him in a clerical capacity, This account was opened about the same time that the one in the name of Mrs Davis, his stenographer. was opened. Arundel was seen here some weeks ago. but since that time we have been unable to locate him. Philadelphia Dec 8 3-Former Secretary Leslie M. Shaw. who is president of the First Mortgage Guarantee and Trust Company of this city. admitted to-day that the Fidelity Funding Company of New York owes him $60,000 Said Mr. Shaw My loans are fully covered by bonds which are AS safe as the bonds of any government on earth, and margined with additional notes at nearly 100 per cent T think the same is true with most and very likely all the banks and insurance companies An effort was made a year ago to increase the capital of the company to something over two million and some subscriptions were made (I was one of the subscribers). on condition that the full Amount should be raised This ought to have beer done, as the proposition was all ,right, if properly handled
