Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-03-06
Dispute Breaks Out
Over Pentagon Space
For Branch Bank


gon for a branch bank broke out
yesterday.
Edwin T. Holland, president of
the Old Dominion Bank of Ar
lington, criticized arrangements
under which the First National
Bank of Arlington has announced
it will start a Pentagon branch
by June 80.
Charging discrimination by
Federal authorities against a
State bank, he demanded a
chance to bid on renting space
at the Pentagon for such an
establishment.
Just a Greedy Attempt.
He was answered by Board
Chairman Thomas ]. Broyhill of
the First National. who declared,
ED Holland is just making a
greedy attempt to get in on a
good deal we've been working on
night and day for two and a half
years."
Now. the only banking ar
rangements in the Pentagon are
a limited facility" of the First
and Merchants National Bank of
Richmond which was opened
during World War II.
1t is, according to J. Robert
Lofts. subsidized by the Treas
ury. Mr.. Lofts is director of the
Office of Administrative Service
under the Assistant Secretary of
Defense for Manpower and Per-
sonnet. and is chairman of the
Concessions Committee which
allocates commercial space at
the Pentagon.
Mr.. Lofts said, a recent survey
indicated the First and Mer-
chants facility was making
money and should be paying
rent. This, he said, led to a re-
view of the banking situation
there. AS of Friday. he added,
papers allocating space in the
Pentagon to the First National
were on the desk Of Defense Sec
rotary Wilson awaiting approval.
Rent Will Be Paid.
Concerning selection of a bank,
he said, I'VE look to the Treas
uly for guidance for what bank
goes in there" And. he said, any
bank that does go in will pay
rent for its space.
Guidance from the Treasury
came through approval by the
Controller of the Currency for
the First National to establish
its Pentagon branch.
Mr.. Holland, whose Old Do
minion bank is chartered by the
State Of Virginia, commended,
however, that he too has a
promise of authorization to open
at the Pentagon from the State
Corporation Commissioner he
can get space to do so.
Mr.. Broyhill. on the other
hand. insisted that the Pentagon
is Federal territory and that the
Virginia authorities have no
power to authorize anything
there.
Mr.. Holland insisted that COM
mercial space is normally let by
competitive bid and should be
in this case.
Noting that the First Ma
tional has three retired generals
on its board of directors and
another as a vice president, he
charged that 1.-The powers that be
are trying to favor one bank over
another" and that military
authorities are showing a prefer
ence for a national bank over a
State bank"
Generals Listed.
Mr.. Broyhill said the generals
had attempted to establish a
banking set up at the Pentagon
themselves shortly after World
War II and that they had joined
his group.
The generals are Brig. Gen.
s. H. Sheriff.. vice president in
charge of First Nationals armed
services activities, and board
members Gen. Jacob L. Devers,
Gen. Carl A. SpaatZ and Mai.
Gen. Howard c. Davidson.
Both Mr.. Holland and Mr..
Broyhill said they had applied to
the Pentagon two or three years
ago for permission to open
branches there and were turned
down on the grounds that moth
ing was needed other than the
First and Merchants facility.
I'VE didn't give up, though"
said Mr.. Broyhill. ED Holland
did"
Mr.. Holland. however, insisted
that when he was first turned
down he was promised he would
be notified if there were any
change in plans. Also. he said, he
kept prodding Pentagon officials
regularly to see if any change
had occurred, but was always
told no.