Evening star., 1938-02-02
ASK DISSOLUTION
FOR MONTGOMERY
LOAN ASSOCIATION
Directors Petition Court to
Approve Sale of Assets
to Perpetual.
J. R. LITTLE IS NAMED
TEMPORARY RECEIVER
Schedule Indicates Concern Is Sol.
vent, but 1900 May Suffer
Partial Loss.

Inc montgomery Building & Loan
Association, 916 Fifteenth street,
which has stock liability of more
than 1921 900. today petitioned Dis
trict Court for dissolution" and for
approval of the sale of it's assets to
the Perpetual Building Association.
Justice Jennings Bailey Immediately
appointed Joseph r. Little, a member
of the Board of Directors of the
Montgomery association, temporary
receiver. He scheduled hearing for
March 7.
George E. Koplin, jr., assistant sec
retary Of the Montgomery association,
was arrested January IL, on a war
rant issued by the United States
commissioner charging him with en-
bezzling s7,708.75 of the associations
funds on March 9, 1895. Unable to
post bail, he was committed to Jail.
Peculations Covered.
officials said today that Koplin's
peculations were completely covered
by surety bonds, and had nothing to do
with today's petition for dissolution.
Although schedule of Montgomery
assets and liabilities filed with the
court indicated the concern is SOL
vent it stated that it should have
more ample operating capital in order
to safeguard its investors.
Assets were stated to be $567,355.O7
and liabilities were listed at s563, ,063.44.
There are some 5000 stockholders.
According to the petition, which was
filed pursuant to resolution Of the
Board of Directors yesterday, five suits
by holders of foundation surplus cer-
tificates" of the Montgomery have
been filed against the association for
repayment of investments made One
of these suits has been successful and
more such actions are possible in the
future, the petition stated.
Considerable Withdrawals.
Due to these suits and beoause there
has been insufficient business recently
to put the association on a safe foot
ing. it is in the interest Of the mem
bers that the dissolution be allowed,
the petition stated.
The association also told the court
there have been considerable with
drawals recently. and it has not been
possible to obtain sufficient new capi-
tai to meet the associations needs.
The petition for dissolution was fled
by the following directors: M. Little.
Charles J. Demas, Howard w. Sharpe,
Charles Brett and R. U. Bashor.
%o1I porraf,yo1 hoe
offered to purchase Montgomery's deed
of trust and mortgage notes and bonds
at par value, as we'll as three pieces Of
real estate.
Loan Sale Arranged.
The petition said arrangement was
made through the District of Columbia
Building and Loan League to sell for
cash the real estate loans of the Mont
gomery association for the full amount
of the balance due on the loans and
real estate that the association has
taken in at foreclosure at its book
value, thereby making available to the
shareholders of the Montgomery as
sociation an amount of money equal to
the share liability to shareholders Of
classes A, B and only.
1t is understood that so-called "sur-
plus certificate holders" would come
under separate grouping, and would
not benefit to the full amount Of
their holdings. There are about 1900
of these
1t was further stated in the petition
that the proposed move would acceler-
ate the dissolution proceedings and
make it possible to make distribution
to the shareholders in much shorter
time than in the ordinary course of q
liquidation proceeding.
Not Member of League.
The Montgomery Building and Loan
Association has never been a member
Of the District of Columbia Building
and Loan League or the United States
Building and Loan League
Justice Bailey fixed the bond Of the
receiver. Mr.. Little. at s575.000.
Douglas, Obear, Morgan and Camp
bell are attorneys for the petitioning
association.
The association was chartered under
laws Of the District. March %, 1882.
The Montgomery association pre-
viously had operated from offices in
Bethesda, Montgomery County, Nd,
but had moved its headquarters to the
Fifteenth street address.
Doors Of the association here had
been open up to the time Justice
70 ilev sirred his order fhis morning