Evening star., 1937-07-28
SENATOR WEIGHS
REQUEST FOR HELP
T0RE0PENF|DEL|TY
Shareholders Committee
Appeals to King to
Speed Action.
CONTROLLERS ACCORD
WITH BANK UNIT ASKED
Somebody Threw Monkey
Wrench Into Works. Mrs.
Bulls Tells Legislator.

AS the Treasury Department con-
sidered new plans for reorganization
of the closed Fidelity Building & Loan
Association, Chairman King of the
Senate District Committee today
studied a shareholders plea that he
intercede in an effort to reopen the
institution.
A committee Of shareholders asked
Senator King to endeavor to bring
the controller of the currency and
the Federal Home Loan Bank Board
into agreement on a reorganization
plan which would charter the Fidelity
as the First Federal Savings e. Loan
Association.
The Utah Senator said this after
noon he had asked officials of the
office of controller of the currency to
do what could be done" to straighten
out the matter in the interests of the
shareholders. He indicated he also
would call officials of the Federal
Home Loan Bank Board soon to enlist
their cooperation.
AT the Offices of the F. H. L. B a
spokesman said that if the board can
be instrumental in protecting the in
vestment of the shareholders it will &c
as far as possible.
Mrs. Mark c. Bulls, a shareholder
in Fidelity and chairman of the COM
mlttee which visited King yesterday
explained today that an agreement
had been reached March 20 between
the controllers Office and the Federal
Home Loan Bank Board to reopen
Fidelity as the First Federal.
But she said she told Senator
King, "a monkey wrench was thrown
into the works by somebody. Now
We want the controllers office to 20
along on the plan both agreed to
March 20"
With Mrs. Bulls in her conference
with Senator King were Desire A. Irr
and DR.. Robert B. Tyler.
Meanwhile, the Treasury DEPART
ment was ready to enter into nepotia
tlons with a new committee proposing
TO reorganlze the association.
The new committee, appointed YES
terday at a meeting of Treasury Off
cials and shareholders at the Fidelity
office, is headed by George A. Sulli-
van. contractor, and hopes to confer
soon with Treasury officials A pre-
llmlnary conference was held yester-
day afternoon by the committee in
the office OF Vincent A. Sheehy, at
torney. The other member of the
group = Charles D. McCadden, at
torney.
Chairman Sullivan announced for.
mer Senator c. c. Dill of Washington
a shareholder in Fidelity. had accept
ed an invitation to become a member
officials OF the Treasury Depart
ment today said the door still is
open for consideration of plans tc
reorganize the Fidelity. No time limit
was placed by the Treasury on the
new committee, it was understood
and there was no indication as tc
when the first conference at the
Treasury might be held.
These sudden new turns in the long
pending situation involving both FL
deity and the First Federal Savings
and Loan Association brought sur
prise to many shareholders, who hao
expected that the First Federal was
about to open the institution and
make available IS per cent Of the
shareholders funds.
The First Federal withdrew. how
ever, in letter from its president
Harry P. Somerville. manager of the
Willard Hotel. sent to the Federal
Home Loan Bank Board, which has
been sponsoring the new First Fed
eral. Somerville declared the pro-
posed communication of the controller
Of the currency indicating liquidation
of the Fidelity might pay about IS
per cent made it unnecessary for the
First Federal to continue.
The First Federal had planned to
make available IS per cent Of share
holders funds either In insured shares
or in cash.