Evening star., 1937-08-05
SET
IN FIDELITY CASE
ParIey of important Officials
of Three Agencies to Be
Tomorrow.

New hope for reorganization Of the
Fidelity Building and Loan Associa-
ton ioomed today as 1t was learned
that conference OF important ofncials
OF three agencies concerned will be
held tomorrow morning at the Treas
ury Department..
In the conference Will be repre-
sented officials OF the ONCE Of the
controller Of the currency, who is In
control Of the Fidelity the Federal
Home Loan Bank Board and the First
Federal Savings and Loan Association,
which has been chartered by the
board to take over Fidelity, but which
had previously withdrawn from the
picture.
The conference was arranged by
Mrs. Mark c. Bulls, chairman OF a
Shareholders Committee, who has
been very active in attempting to get
| onicials together to discuss the con-
troversial case Of Fidelity.
The Treasury probably will be rep
resented by Deputy Controller Gibbs
Lyons and others; the Federal Home
Loan Bank Board will be represented
by Horace Russell, its general counsel,
and Arthur J. Younger, chief Of the
boards savings and loan division, and
the First Federal will be represented
by Harry P. Somerville, its president,
and others. Mrs Bulls will be present
representing her Shareholders Com
mittee.
This development followed swiftly
today on the heels of several moves
yesterday centering around the FL
deity.
Pressure Is Applied.
From two different quarters pressure
was being applied by shareholders
committees to bring about a reorgan-
ization.
, In response to 4 plea from Mrs.
Bulls, Somerville announced he was
willing to resume consideration Of the
Fidelity problem. Said Somerville:
The attitude Of our board is the
same as when it was organized-that
is, if it can in any way assist the de-
positors of Fidelity in effectins re-
organization plan, it is still willing to
| do So
Ready to Discuss Matter.
He repeated what he stated in his
letter OF withdrawal written to the
Federal Home Loan Bank Board to
the effect that If the receiver could
liquidate the assets on an 85-cent
basis rs estimated. there wasn't any
reason for a reorganization.
| However" he said, If the de-
positors of Fidelity still are desirous of
having reorganization I am per-
fectly willing to discuss the matter
with the proper officials"
Another depositors' committee,
working separately from Mrs. Bulls
group, planned to approach officials
Of the First Federal with a proposal
to reorganize Fidelity. pay IS cents on
the dollar and enlarge the present
Board Of Directors Of the First Fed
eral. George A. Sullivan. contractor,
chairman OF this committee, and four
other members already have conferred
with offlcials Of the ONCE OF the con-
troller Of the currency and Of the Fed
erai Home Loan Bank Board
They planned to continue their ne
gotiations today.
Committee Is Named.
The Fidelity problem has reached
the point where it has aroused leaders
of the District of Columbia Building
and Loan League to action. A commit
tee of three has been appointed, it was
learned today, to Cooperate" in ef-
forts to help solve the problm The
committe consists Of Edward c. Baltz,
secretary of the Perpetual Building a.
Loan Association; c. Clinton James,
! counsel for the District OF Columbia