Evening star., 1937-04-03
LOAN ASSOCIATION
ASKS CHARTER TO
TAKE0vERF|DEL|TY
New Organization Would
Make Available 85
Cents on Dollar.
COUNSEL FOR GROUP
OF IL FILES PETITION
Four Were Connected With Fidel-
ity-Home Loan Bank Board
to Set Hearing Date.

A petition was filed today with the
Federal Home Loan Bank Board for a
charter to form the First Federal Saw
ings g. Loan Association, which is
planned to purchase assets of the closed
Fidelity Building & Loan Association
and make available IS cents on the
dollar to shareholders of the defunct
organization.
The petition was filed by Walter M.
BaStian, attorney. who has been the
counsel in negotiations for a reor-
ganization of the Fidelity. He acted
on behalf Of the new organizing group
of - men, four of whom were con-
nected with the Fidelity and eight
who were not.
Four Shareholders.
The four who were shareholders in
Fidelity are DR.. Ralph S. w. Bonnet,
former president of Fidelity; Marcus
Borchardt, secretary of Fidelity and
former special assistant to the Attor-
ney General Harry j. Miller and John
L. Fletcher.
The other members of the organiz-
Ing group are Maj. George l.. Berry
Co-ordinator for industrial co-opera-
ton; Dr. Carl Henning, physician;
Edwin Jacobson of Jacobson Bros,
builders; William D. Jameson, attor-
ney and former member of Congress;
John c. Coons, vice president of the
Chesapeake & Potomac Telephone Co. ;
P. j. Schardt, assistant to the vice
president of the Southern Railway.
Harry P. Somerville, manager of the
Willard Hotel. and Thomas Somerville,
treasurer of Thomas Somerville Co.,
plumbing.
VIII Set Hearing Date.
The Federal Home Loan Bank
Board early next week will assign
date for hearing of the petition
by the Review Committee of the
Board, headed by Oscar Krentz.
This committee will hold a hearing
on the petition for a charter and
draft recommendations to the board,
which later will meet to decide on the
charter
While these formalities are neces-
sary, it was understood today there
was no doubt about the board ap-
proving this organizing group, and
granting a charter.
The organizing group will then meet
to elect themselves directors and name
officers.
Unofficial indica tions were that
Jameson might be selected as presi-
dent.
Would Own Shares.
The new directors and their officers
would qualify as shareholders in the
new institution by the ownership of
shares. They would apply for men,
bership of the new Federal in the
Federal Home Loan Bank of winston
Salem, N. C. They would also apply
for insurance Of the shares in the
Federal Savings & Loan Insurance
Corp,
The next step would be a formal
report to the controller of the cur
rency. who now has control of the old
Fidelity. The receiver now in charge,
James H. Nolan, would make applica-
ton to the District for permission to
sell the assets of the old Fidelity to
the new Federal institution. The
court then would fix the date for a
hearing on this application to sell.
If and when the court approves
such a sale, the final details would be
carried through by cooperation of the
Federal Home Loan Bank Board, the
new Federal institution. the office Of
the controller of the currency and his
receiver.
Plan to Be Pushed.
No estimate was available today as
10 the time expected to be involved
In carrying out this procedure. All
officials concerned, however, have in
dicated it will be pushed as rapidly
as possible.
When the new Federal is estab-
iished shareholders will have the
privilege of getting immediate cash
uD W 90 pei StllU IL JlICN W dIlt W w oo'
or they may leave their funds in the
new institution.
This new association will be con-
Quoted under the rules and regula-
tions of such associations, which are
entirely different from the system
operated by the Fidelity. Each ac-
count will be insured by the Federal
Savings 6o Loan Insurance Corp. up
to S5 900.
The new Federal Association would
operate as a member of the Federal
Home Loan Bank Systel-l. All of the
loans would be made on what is known
as the direct reduction loan system"
This means that each monthly pay
ment by member of the association
would be directly applied, part of it
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