Evening star., 1936-08-16
Controller Announces Claims
to Be Received Monday
Next Week.
LOSSES ARE ESTIMATED
AT MORE THAN $780, 900
Meeting This Afternoon Called by
Don A. Loftus-Aim to Con-
serve Assets.

ClOu IcdOy W dCCcpI piOOAS Vi SAdlAio
Monday of next week, plans were
completed by the depositor- -sharehold-
ers and borrowers to hold meeting
this afternoon at the Washington
Hotel to form a committee to repre-
sent their interests.
Notice that claims will be received
was made public yesterday by Con-
troller of the Currency j. F. T. O'Con-
nor.
Losses in the Fidelity, disclosed for
the first time by O'Connor, were esti-
mated in a report by his examiner to
be lin excess Of 100000"
The meeting this afternoon is
scheduled to be held at the Hall of
Nations ball room of the Washington
Hotel at 2 o'clock. 1t was called by
Don A. LOTUS, as chairman of a ten
tative committee. Other members are
H. M. Bolliger. and D. A. Irr. LOTUS
is president of Permanesque Home
Village. Inc, Beverly Hills, Va. de-
scribed in the statement as "a corpo-
ration whose interest as shareholder
and borrower Is as great as any per-
son or corporation in such capacity"
Will Aid Assets Conservation.
In his statement LOTUS said the per-
manent committee to be formed would
assist in conserving the assets" of
the association. Other purposes of
the permanent organization were out
lined in part as follows:
ITO convey and express the true
facts to all interested parties; to assist
in stopping rumor or untrue facts from
disturbing the present receiver from
properly performing his duties so as
to conserve the time required to COM
pletely audit the institution with the
least possible delay; to select the
proper plan, with just purpose and
personnel, to present to the United
States Treasury and ONCE of the con-
troller Of the currency a reorganiza-
ton of the institution pursuant to a
proposed plan: examination of the
assets and audit when completed by
the receiver so as to cooperate in
every way possible to eliminate any
unjust statements, claims or untrue
statements to be made: and, mainly,
to conserve the institution for the
benefit of both the shareholders and
borrowers whose interests are identical
and should be prevented from dissipa-
ton"
Only depositors. shareholders and
borrowers will be admitted to the
meeting. LOTUS said, Ion presentation
of some Identification in order to elimi-
nate disinterested parties"
Persons entitled to attend, he said,
"are urged to bring pass books or
notice of meetings of stockholders, or
letters sent to them from the Fidelity
Building g. Loan Association, so as
to be admitted.
The call for proofs of claims, O'Con-
nor said, was for the purpose of estab-
fishing the amount of outstanding
liabilities of the association. The esti-
mate of losses "in excess of 5000, ,000."
he said, was mot final," adding that
"the extent of the losses will not be
known until complete investigation
Of all of the affairs of the associa-
IlOn mas Deen maoe.
Several plans involving the possible
reorganization of the association are
under consideration by the control
ler," his statement said, but final
decision cannot be reached as to the
course to be pursued, whether of re-
organization or of liquidation, until
the fair value Of all assets and the
amount Of outstanding liabilities of
the association are accurately known.
Appropriate steps and measures are
already in progress for the purpose of
checking and ascertaining-by title
examinations, appraisals and other
wise-the value of the assets, and
these matters will be expedited just
as much as reasonably practicable.
For the purpose of ascertaining
liabilities of the association, it is neces-
sary to call upon the members Of the
association, numbering more than 49,
600, to file proofs of claims, and it Is
expected to open the Offices of the re.
ceiver for the purpose of receiving
these claims on Monday, August "a,
1896. Each member will be notified
as to when and where to appear to
file such proof of claim. In accord
ance with receivership practice it is
necessary that the pass book, or other
evidence upon which the claim Is
based, be surrendered to the receiver
at the time proof of claim is filed.
Receiver to Give Receipt.
The receiver will give receipt fo-
the pass book, or other surrendered
documents, and in due course re-
ceiver's certificates evidencing the
claims will be issued. Where proof of
claim Is to be made by an executor,
administrator, or by any one other
than the original claimant, certified
copies of the orders of appointment,
power Of attorney or other appropriate
authority must be attached to the
proof of claim.
"A considerable number of letters
have been received from members of
the association" said O'Connor, "in-
quiring concerning the present status
of its affairs. The pressure of duties
and the ENORMOUS amount Of detail
incident to taking over the affairs of
the association have prevented the re-
eeiver from acknowledging these let
ters, and it is requested that this an
be accepted in lieu Of
reply. The members may rest as
sured that every step is being taken
to preserve the assets and to protect
their interests, and just as soon AS de-
velopments warrant, further an
will be made"
The controller said he had ap-
pointed the receiver, M. L. Barrett,
jr.. for the institution on July ls,
lowing to the fact that an examina-
ton of its affairs revealed apparent
and losses which ex.
ceeded in amount the profits and re-