Evening star., 1951-06-27
|Deposed Loan Official
Sues for S5OO, 600,
Charging Conspiracy
By DonoId B. Hodley

BY Donald B. Hodley
Carl II. Ellingson. who was de-
posed as president Of the $50 mil
lion First Federal Savings and
Loan Association last January,
filed suit in the United States Dis
|trict Court today charging he was
Ia victim Of conspiracy.
He asks 100000 damages from
seven directors and officers OF the
institution.
Augustus e. Giegengack, former
Public Printer. and board chair
man Of the association, who also
took over the presidency after the
action against Mr.. Ellingson,
headed the list of defendants.
Other defendants included: Mil
ton !. Baldinger. director and gen.
|eral counsel: Edwin jacobson, di-
rector and vice chairman of the
board: Thomas e. Lodge, director
and secretary: Marion e. Poole
|and NJ. B. Swanson, both direc-
tors. and Harold e. Shelters, di-
rector and vice president.
Group i'm Clear, Morrison Says.
w. Franklin Morrison, vice pres
ident and manager of the associa-
ton, declared. "I have no idea
what this alleged conspiracy is
about. We are absolutely clear
from any standpoint"
At the annual meeting in jan
uary, Mr.. Ellingson simply was
not reelected and that happened
once before In the preceding l3
years, he added.
The suit was filed by attorneys
for the plaintiff, Charles C.. Col
Inns and Irving q. McCann.
The action taken at the jan
uary II meeting was not an
nounced to the newspapers until
one week later on January "a, and
at that time. Mr.. Giegengack
stated that Mr.. Ellingson had re-
tired as president and executive
officer.
Nothing was said about Mr..
Ellingson's opposition to being re-
tired, but 1t was learned that at
the annual stockholders meeting
Mr.. Giegengack paid q stirring
tribute to him. Following this
Mr.. Ellingson reportedly turned
over proxies he had received for
the reelection Of four directors,
whom he regarded as supporters.
When the directors meeting
was called to order a short time
later. Mr.. Ellingson was told that
he would not be reelected.
Praised In Announcement.
In making the announcement of
Mr.. Ellingson's retirement" one
week later. the company an
nouncement. put out with the
approval Of Mr.. Giegengack, read !:
Personally known from coast
to coast for his contribution to
the savings and loan program, Mr..
Ellingson has given his life to the
promotion OF thrift and home
ownership. For years his many
articles on all phases Of savings
and loan problems and operations
have appeared in national maga-
zines throughout the country.
while his manual Of office admin
istration serves as q guide for
many.
Prior to assuming manage
ment OF First Federal, MIR. Elling-
son was connected with the Fed
eral Home Loan Bank Board. hay-
ing charge Of the field forces re-
sponsible for organizing Federal
savings and loans associations
throughout the United States"
Mr.. Ellingson was with the
Home Loan Bank Board from 1899
to 1888, when he helped to Or
ganize the First Federal Savings
d Loan Association to take over
assets Of the defunct Fidelity
Building d Loan Association. He
became manager and executive
vice president of First Federal and
five years later became president.
Assets OF First Federal grew from
So million to $32 million.
He has been active in the Ma
tional Savings and Loan League
and at one time was national vice
but declined the presi-
dency later. because Of other
duties.