Evening star., 1937-04-17
FIDELITY GROUPS
INCLUSION IN NEW
ASSOCIATION HIT
Shareholders File Protest
With Home Loan Bank
Board.
PLANS FOR HEARING
TUESDAY COMPLETED
Opposition to Old Officials Does
Not Object to Principles
in Move.

A protest has been filed with the
Federal Home Loan Bank Board
against the proposal to include on
the board of directors of the new First
Federal Savings & Loan Association
| any one who was connected with the
closed Fidelity Building g. Loan As
sociation.
This was learned today, as plans
were completed for a hearing by the
board Tuesday, when the protest will
be brought into the open. The pub
lie hearing is scheduled for pm. in
room 1921 of the new Post ONCE De-
partment Building, Twelfth street and
Pennsylvania avenue.
1t is for the purpose of providing
the Home Loan Bank Board with
complete information on the proposal
to grant charter for the First Fed
eral Savings g. Loan Association to
take over assets of the Fidelity and
make available IS per cent Of ths
shareholders funds.
The protest was formally filed. It
was learned. as a result Of a meeting
held recently by influential persons
who are understood to be large share.
holders in the Fidelity At this meeting
it was decided to oppose the plan
already before the Home Loan Bank
Board, to include some men on the
board of the new institution who had
been prominent in the Fidelity.
Opposition to Old Officials.
The protest, it was learned. does not
oppose the principles behind the move
ment to set up new savings and loan
association in place of the Fidelity.
1t is not the purpose of the protest.
according to reliable information, to
defeat the purchase of Fidelity assets
by the new First Federal. But stout
objection will be made against allowing
the old Fidelity officials to have any
part in the new institution. The text
of the formal protest has not been
made public, but at the Home Loan
Bank Board, it was stated that the
protest was on file.
Word that the protests had been
filed came as a surprise to Walter M.
Bastian, counsel for the men who
have filed application for the charter.
Il know nothing about such a pro-
test he said. If such objection has
been made. it seems to me nothing
short Of amazing, because these men
who were on the Fidelity board have
worked day and night in their ef-
forts to get the new institution started.
They have been mainly responsible
for the progress made so far"
Bastian said he would appear at
the hearing to explain the proposal to
start the new Federal Savings & Loan
Association under the general plan
| already approved and recommended by
the Home Loan Bank Board
To Defend Original Plan.
Asked if he would defend the
original plan, he said, "Of course I
will
Bastian entered the Fidelity case
after the institution was closed by the
controller of the currency last July
and placed in the hands of a receiver.
Word that objection would be raised
at the hearing has stirred keen in
terest in what otherwise might have
been a perfunctory hearing on . pro-
posal which previously had received
virtually the approval of the board.
Although the hearing was originally
scheduled for the board room in the
Post Office Department Building, it
was learned that plans have been made
to take care of a crowd in case one
shows up. As matter of fact, pre-
hmlnary arrangements have been
made to move the hearing over to the
huge Departmental Auditorium on
Constitution avenue between the In
terstate Commerce Commission and
the Department of Labor. This would
hold several hundred persons.