Evening star., 1960-09-03

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King. He also said the White
involved in the seizure dispute
and that q settlement of the
case had been vetoed" by
David w. Kendall, special
counsel to President Eisen-
hover.
The King charges brought
instant denial from the staff
OF Vice President Nixon and
others mentioned by the Con-
gresham.
Finch ScOrns Charge
Robert H. Finch, Mr.. Nixon's
campaign manager, said "the
whole King handout is abSo-
lutte nonsense. 1t is pure
political tissue. :. Cecil King
must think he is still running
against me for political office. p"
Mr.. Finch ran unsuccessfully
against Mr.. King for Congress
in 1852.
Mr.. Kings statement, pre-
pared for publication in the
Congressional Record, said:
/. The Long Beach, Calf,
Savings & Loan Association
was seized by the Federal
Home Loan Bank Board and
that this was "unjustlf1ed and
irregular"
2. A Long Beach law firm
headed by Mr.. Nixon's cam
paign manager in the area
has been given a lucrative
retainer" by the Federal Home
Loan Bank Board. MIR. King
said the Long Beach firm of
Clock, Waestman & Clock was
suggested to the board by Mr..
Finch.
Fee Called "PayOla"
The retainer, Mr.. King said
in his statement. was political
payola. So far this has paio
off for Mr.. Nixon's campaign
manager at the rate of almost
$4,000 a month"
The head of the Long Beach
law firm, John Clock, said Mr..
Kings statement was "ridicu-
lous false and untrue"
Mr.. Clock said he has no
time for political activity him.
self. He said a nephew, Henry
Clock, recently did some work
for a Nixon campaign COM
mittee, "but he's not the head
Of the committee or anything
like that"
Mr.. Clock said his firm had
only minor part of the legal
work involved, and the mod
est" fee was not on a retainer
basis-"if we don't do any
thing, we don't get anything"
At the time it took over the
savings and loan outfit, the
Home Loan Bank Board said
the association has a man
agement which is unsafe and
unfit to manage a Federal
savings and loan association,
in that its management has
caused the association to vio-
late law and regulations and
engage in unsafe or unsound
operation"
implications Raped -
Albert ]. Robertson. chair
man of the bank board, said
of Mr.. Kings statement:
Some of the essential, bare
facts are correct, but the i'm
plications and sequence are
not"
The seizure of the Long
Beach firm last April % has
been Investigated by a House
subcommittee headed by Rep
resentative Moss, Democrat of
California, who also has criti-
ciZed the bank boards action.
Mr.. King gave this account:
Early this year the chair
man of the Federal Home Loan
Bank Board discussed with
David w. Kendall, special
counsel to the President, the
boards plans to seize the Long
Beach institution. On Friday,
April %. 10 minutes before
closing time, board agents
marched into the association
and seized it. When the insti-
tuition opened its doors the
following Monday, long lines of
frantic depositors were waiting,
and in the next two weeks more
than $26 million was with
drawn
Meanwhile, the board mem
bers realized what a mess they
had got themselves into and
decided to get some extra legal
talent to help fight off the
courts and the depositors.
Naturally, they turned to
Nixon's office and asked for
recommendations.
"A board member talked it
over with Robert H. Finch, ad-