Evening star., 1955-02-27
Building Loan
MonopoIYSeen
In Maryland Bill
DC. League Charges
Nearby Associations
Can't Meet Growth
By Donald B. HodIey

The rapidly growing savings
and loan business in Maryland
suburbs on the District line will
be put into a "monopolstic
straight jacket" and severely re-
tarded if bill to limit branches
of District associations is ap-
proved by the Maryland Legls-
lature.
This was predicted last night
by officials of the District Build
ing and Loan League, who
charged that the few relatively
small nearby associations spon-
soring the measure were "in no
position to keep step with the
sensational growth of population
and available savings in their
sections"
They also emphasized that
with many Of their association
members moving into the sub
urbs they felt it only fair to be
permitted to extended facilities
for their convenience. They
pointed out that the largest
association in the Maryland
group has had the privilege of
operating a downtown Washing
ton branch for the convenience
of its customers for many years.
They referred to the Hyatts-
vile Building Association, with
around $32 million of assets and
a downtown Office at TIL Four
teenth street NV.
Cites Reciprocity Laws.
President Raymond c. Will
liams of the District league said
that under reciprocity laws
enacted in 1889 for both Mary
land and the District, savings
and loan institutions have been
permitted to cross the boundary
lines of the two Jurisdictions
without in reference. Four
branches of three District as
soclations are operating in Mary
land and a branch has been ap-
proved for a fifth District asso-
citation.
Purpose of the Maryland bill
is to create a monopoly on saw
ings in the hands of feWnearby
insured and uninsured Maryland
associations by revoking existing
legislation" said Mr.. Williams.
T. Hammond Welsh, jr., of the
Hyattsville association, who is a
dire ector of the Intercounty
League of Savings and Loan As
ISOLATION sponsoring the Mary
land legislation said members Of
that group feared that unless
some sort of control is set up,
Maryland associations will be en-
dangered by continued invasion
of District associations. -
13 Groups in League.
The Intercounty League has 13
member associations, all in
Montgomery and Prince Georges
! Counties, except for two in Anne
Arundel, he said.
In addition to this group, both
state wide Maryland savings and
loan leagues are backing the
legislation. which would not af-
feet present branches of District
associations, but would prohibit
the establishment of any more.
he said. 4
Mr.. Welsh said associations
chartered in the District OF Co
lumbia can establish new
branches without the approval of
any regulatory body, although
Federally- chartered District as
sociations must gain the ap-
proval of the Home Loan Bank
Board after a hearing.
Since 1916, he said, all Mary
land associations that are in
sured and members of the Home
Loan Bank System have been re-
Quired to sign an agreement not
to start any new branches with
approval of the HLBB.
Sees Disadvantage.
He said this provision put the
Maryland associations at a dis
advantage in relation to the Dis
trict-c hartered institutions.
However, he said he knew OF no
case of a Maryland association
applying for a branch and being
rejected by the HLBB.
He disclosed the Hyattsville
association filed application for
an additional branch in the
Suitland section about 3 or 4
months ago and added he has
sumed it would go through reg
ular channels. He declined to
express any opinion as to
whether it would be approved or
rejected.
Emphasizing that the nearby
suburbs need the mortgage
financing available from the Dis
trict associations, Mr.. Williams
pointed out that the assets OF
District associations exceeded
$675 million while assets Of IL
Montgomery and Prince Georges
associations backing the bill
amounted to around $50 million.
Bill Reported Favorably.
At an Annapolis hearing Fri
day, after which the bill was re-
ported favorably to the House
of Delegates by the committee.
Mr.. Williams said District league
officials proposed legislation that
would provide for restriction of
new branches in Maryland on
the basis Of proved community
needs.
THE District league opposes
bitterly the principal of utiliz-
ing the State Legislature as
means Of sitting free enterprise
and prohibiting OF free and fair
competition in our business.
I'VE believe the suburban
Maryland residents, thousands of
whom have moved from the Dis
trict and are members of our in
stitutions, have the right to a
free choice as to where they
conduct their personal business"
he declared.