Evening star., 1938-07-03
CLOSEDF|DEL|TY
IS REORGAN|8ED
IN RECORD TINE
Work Completed as First
Federal Gives Receiver
$24,841 Remaining.
GENERALIZATION WIRES
POUR IN TO OFFICIALS
New Association Has Assets Of
$500, ,000-Has Not Asked
for Advances.

The First Federal Savings and Loan
Association yesterday wound up its
account with Receiver James H.
Nolan of the closed Fidelity Building
and Loan Association by turning over
to him check amounting to 324,.
841.8O
This represents funds belonging to
about 400 shareholders in the old
Fidelity who have not yet called to
settle their old accounts.
Transfer of the check marks the
end OF an involved transaction BY
which more than 1900 shareholders
OF the old institution, at their own
option. received either cash or insured
shares In the First Federal in exchange
for their shares in the closed insti-
tuition, on the basis Of IS cents on
the dollar.
Concluding of the transaction lust
four months from the date of the
opening OF the First Federal, March
!. was characterized last night by
T. D. Webb, vice chairman of the
Federal Home Loan Bank Board. under
whose authority the First .Fedaral
opened, as "a record"
Cooperation Is Cited.
Receiver Nolan declared that
completion Of this transfer within
such short period, satisfactory to the
investors and borrowers Of the old
Fidelity Association is due to 100 per
cent cooperation between the direc-
tors of the newly organized institution
and the governmental agencies con-
cerned"
He notified the remaining 400 FL
deity shareholders that he viii re-
main at the First Federal ONCE 6lO
Thirteenth street NV, for only about
10 or 20 days, to wind up the re-
ceivership. Shareholders who have
not called for their money before he
leaves, Mr.. Nolan explained, will have
to go to the Treasury Department.
and make claim through q much more
complicated procedure in order to get
their money. When he closes the
receivership soon, he said. all accounts
and money remaining will be turned
over to the controller of the cur
rency.
Fidelity shareholders. it was en-
nounced. had left nearly 70 per cent OF
their total Fidelity investment of about
S3.750,000 in the new Federal Asso-
citation.
Direct Reduction Mortgages.
The staff Of the First Federal has
turned into direct reduction mortgages
the outstanding loans of most of their
TOO mortgagors, it was announced by
Carl H. Ellingson, executive manager.
Since March l, he announced, ap-
proximately $58l 900 has been invest
cd In savings and investment share
accounts by new and old patrons.
The First Federal has been active
IN making amortization first trust
loans for the construction, moderniza-
ton, purchase and refinancinR of
homes in the District and nearby
Virginia and Maryland. Mr.. Ellins-
son reported it has made q total Of
l26 new loans amounting to S591,-
9O4. OF these 80, totaling S205375.
were for construction of new dwell
ings. Advances for financing the
purchase of existing homes amount
to $4,000.
The First Federal Savings Il Loan
Association now has assets of more
than $3,70O,0O0. This includes cash in
excess of S500,00O and more than
s2,500,O0o in outstanding home loans.
The association has not found it nee
essary to request advances from the
Federal Home Loan Bank serving its
district nor has it applied for Gov
ernment investment in its shares,
Per Cent of Quota.
Exclusive of its Thirteenth street
ONCE building, real estate owned
by the association amounts to less
than Z per cent of its assets.
Harry P. Somerville, manager of the
Willard Hotel, is president of tho
association.
kilograms of congratulation yes.
terday poured into officers of the
institution, including Manager Ellins-
son, from ofiicials of the Federal Home
Loan Bank Board. savings and loan
associations and banks in all parts
Of the country.
Vice Chairman Webb Of the H. o. L.
G. wired: "On behalf Of Chairman
Fahey and members OF the Federal
Home Loan Bank Board I wish to
extend congratulations to you, your
Board Of Directors and to your staff.
You have accomplished a dificult task
to the great benefit OF your share
holders and to the community gen.
orally. The speedy completion of this
reorganization work reflects credit on
the savings and loan industry and
augurs we'll for the future growth
and usefulness Of your association.
I believe you have set . record In the
short time required to do such a
i0h