Evening star., 1938-02-27

ARE TURNED OVER
T0F|RST federal
SomerviIIe Is Given Funds
by Receiver of
Fidelity.
PAYMENT OF DIVIDENDS
TO COMMENCE TUESDAY
Post Cards Going to Shareholders
at Rate of 500 Daily.
$4,000 on List.
BY HAROLD b. ROGERS.

BY HAROLD B. ROGERS.
Three checks for total Of 81, ,49l,-
94707 were turned over to the new
First Federal Savings A Loan Associ-
alton yesterday in preparation for
its opening Tuesday morning.
The checks were presented by James
H. Nolan, receiver Of Fidelity Build
ing & Loan Association. to Harry p.
Somerville. president Of the First Fed
eral, In the presence of Carl H. e.
lingson. executive manager of the
new concern.
These ofncisls then proceeded with
plans to take care of the first group
of 500 Fidelity shareholders. who have
been notified to present themselves
Tuesday morning.
Post Cards Being Mailed:
Post cards are being mailed out in
groups of 500 a day, notifying share
holders Of Fidelity as to the day on
which they are expected to call at
the First Federal, $40 Thirteenth
street NV. to satisfy their claims
against the Fidelity.
Mr.. Somerville emphasized that
only those shareholders who have
been notified will be expected to ap-
pear on the opening day Others are
asked to await receipt of post card
before calling at the Office. This. it
was explained, is to avoid confusion.
The post cards will be mailed out
in daily patches until all $4,000
Of Fidelity are notified.
The claimants are expected to bring
their notification cards and their
evidence Of claim" receivers re-
ceipt for pass book issued long ago.
Release to Be Signed.
The shareholder then will be waited
on by the receiver or his representa-
tive teller, with a dividend order. The
will sign a receivers re-
lease and obtain the order on the new
First Federal Savings and Loan Asso-
citation.
With this order the shareholder
then may 60 to another part Of the
same room and present it to q repre-
Of the new First Federal. He
will be told he may receive his divi-
dend Of IS per cent on his Fidelity
either in the form Of shares
in the new First Federal or in cash.
Or he may divide it up, receiving
some shares and some cash. If he de-
sires cash, 1t will be paid in the form
Of check, payable on the First Fed
eral. Those who open accounts will
be furnished with pass books and
necessary papers.
$3,743,o0o Claims Filed.
The $4,000 Fidelity shareholders
have filed claims for $3.743, 900, repre-
senting IS per cent Of their Fidelity
holdings. More than 10 per. cent of
these shareholders. however already
have pledged their dividends as ac-
counts in the new association and
hundreds of others are expected to
designate their preference for shares
In lieu Of cash.
With these, 70 per cent pledged the
association already has q total of
81 ,660,000 assets from shareholders.
1t will open its doors as . member
Of the Federal Home Loan Bank Sys-
tenn with its shareholders accounts
up to 5000 each by the Fed
eral Savings and Loan Insurance Corp.
The new institution, the first Fed
eral savings and loan association es-
tablished in the District Of Colum-
bia, has ample cash assets fortified
by the vast credit resources OF the
bank system. 1t is expected by its
officers to have 4 wide effect in stimu-
lating home financing within 4 So
mile radius.
Funds in ! Banks.
The checks turned over yesterday
were drawn by the of11ce OF the con-
troller of the currency against funds
In three separate national banks
here in which Receiver Nolan had de-
posted accounts from his collections.
The funds came mostly from real
estate loans, principal and interest.
It was not q forced liquidation, Mr..
Nolan explained.
The checks included one on the
Second National Bank for $685.
03615, one on the Liberty National
Bank in the sum Of $440,602.36 and
q third on the Hamilton National
Bank for $231, ,30856. They were
signed by an oficial in the ONCE OF
the controller.
The First Federal, under the court
order, takes over all assets of the FL
deity on the basis of IS cents on the
dollar.