Evening star., 1937-09-04

eral SaUingS & Loan Association
deddlocked about month ago, but
Uere reopened, resulting in neu Of
fer today.
Shareholders of the closed Fidelity
Building & Loan Association today
were presented an official proposal to
reorganize the institution into the
new First Federal Savings & Loan
Association.
The proposal was contained in a
letter with four Enclosures mailed out
today to about 1890 shareholders
by James H. Nolan, Fidelity receiver
The proposal is similar to one which
has been informally discussed for
months and is designed to make avail
able to shareholders IS per cent of
their claims. However, this would be
possible only if rs per cent of the
dollar value of the claims are taken
in share accounts in the new asso-
ciation.
The shareholders are given until
September 80 to answer the receivers
letter and to indicate if they are will
ing to subscribe to such a plan to re-
open the institution.
The documents mailed by the re-
ceiver were agreed to by officials of
the Treasury Department.. the Fed
eral Home Loan Bank Board and the
First Federal Savings & Loan Asso-
citation after previous negotiations
had temporarily interrupted the plan
when the First Federal withdrew from
the picture.
New Provision.
The newest factor in the letters to-
day, which had not been discussed in
previous public announcements on
the proposal, was the requirement
that in order to reopen the institu-
ton as the First Federal it will be
necessary to have share accounts SUBJ
scribed in the new association up to
IS per cent of the dollar value in the
old one
If this IS per cent of pledged shares
is forthcoming, it was indicated, plans
for reopening the institution under
new name can be pushed Accord
ing to some predictions, it may reopen
between November ! and November
Is
There is tremendous amount of
work to be accomplished, however.
First, the letters must reach the share
holders, beginning with the first batch
placed in the mails today. Then, three
fourths of the dollar value must be
pledged in new shares by September
80. deadline fixed in order to facili-
tate the reopening.
If sufficient amount is pledged the
receiver would go to court, asking for
approval of the sale of Fidelity assets
TO the new First Federal on the basis
of IS cents on the dollar This ap-
| proval, which is considered likely is
necessary before further steps can be
taken The new association then would
take over and set up books to open
the new First Federal.
Officers Named.
The officers Of the new First Fed
eral, as outlined in the receivers letter
today, are Harry P. Sommerville, man
ager Of the Willard Hotel, president;
Peter ]. Schardt, secretary and treas
urer Other directors include Senator
George L. Berry of Tennessee, William
D. Jameson, Carl Henning, Edwin
Jacobson and Thomas Sommerville, Sd.
The proposal, including its several
Enclosures, briefly divides the Fidelity
shareholders into two distinct groups,
those who are willing to subscribe all
Of their holdings into shares in the
new association and those who would
not do so. Those who will subscribe
all Of their shares are provided with
three forms to sign, forms A, B and C..
Those shareholders who intend to
insist ON cash payment have nothing
to sign. But, under the program, un-
less IS per cent Of the dollar value is
subscribed, it will not be possible to
reopen the institution as the new
First Federal.
Bomb Kills Woman.