Evening star., 1961-02-19
.Sovings, Loan Fight Held
Bio Gain for Dissidents
BY PAUL HOPE

by PAUL HOfE
ANNAPOLIS, Feb. 1S.-
Maryland Republicans and dis
sident Democrats are finding
good hunting these days at the
General Assembly.
The fight over savings and
loan association legislation il
providing them with a treasure
trove Of political deposits which
they no doubt viii use to settle
accounts in 1862.
Some legislators are predict
ing that the front row of the
House Of Delegates will display
mahy new faces after the 1861
elections. That's the row which
contains Baltimore County'i
Democratic legislative contin.
gent, many Of whom are in.
volved in the fight over 9 de-
posit insurance company.
Republicans aren't the only
ones standing by with pad ir
hand putting down notes fol
1862.
Democrats Interested Too
There are competing Balti-
more County Democratic fac
tions which would like to pick
UP some Of the seats Of the
Boone Brewster Birmingham
combine.
And down in Charles County
maverick Democrat David
Hume is putting check marks
on q tote board which he may
haul out in q Statewide race
In 1862.
Here's what the onlookers
are seeing:
A fight which has been pri-
marily over q bill to curb q
company organized by Balti-
more County political leaders
TO insure deposits in savings
and loan associations. Also fig
uring in the battle is another
bill which would regulate saw
ings and loan associations.
The insurance company in
VOWED is Security Financial In
suTance Corp. Among its off,
GERS and directors are Delegates
A. Gordon Boone, Democratic
floor leader; Charles F. Culver
vice chairman of the Banking
and Insurance Committee, anc
Roy N. Staten. Maryland's Ma
tional Democratic Committee
man Michael j. Birmingham /!
chairman Of the board.
Delegate Joseph D. Tydings
Democrat Of Hartford County
introduced q bill to curb thC
activities Of Security Financial
He claimed the company wa!
getting too far out on a limit
by insuring deposits in savings
and loan associations beyonC
safe limits. His bill provide!
that Security Financial coulC
not insure any single saving.
and loan company for ar
amount greater than 10 pei
cent Of Security Financial'l
assets.
Two major side issues have
figured in the fight:
/. The ownership Of the ma
jority stock In Security Finan-
cial-a matter that has caused
considerable speculation. Two
Canadian firms, whose owner
ship has not been disclosed
hold about 10 per cent Of the
stock In Security Financial.
Mr.. Boone has admitted It
was outside money which wa
used to set UP the company.
2. Is there any connection
between Security Financial and
the growth Of multi-stock saw.
ings and loan associations dur.
ing the last several months?
The regulatory bill-the So
called Case bill-would OUTLAW
multi-stock savings and loar
associations.
Denial by Boone
There have been implication
that Security Financial, of somC
Of its representatives, have beer
involved creating several multi
stock companies formed durinI
the past year. Mr.. Boone deniei
vehemently that Security Fl,
nancial has had anything t,
do with organization Of an,
savings and loan associations.
Multi-stock associations diff.
fer from the traditional Mary.
land mutual companies in that
they offer two types Of stock
The voting stock is held by tn,
organizers, whereas the voting
shares in the one-stock mutua
companies are owned by per.
sons who place their savings ir
them and theoretically contro
the companies.
Many Of the multi-stocE
companies are paying high in.
terest rates and using advertis.
ing gimmicks-such as mini
stole and television giveaways-
to attract depositors.
Some opponents Of the Cass