Evening star., 1961-11-03

area.
Mr.. Finan's petition against
military Savings. which was
presented to the court in Rock
vile by Deputy Attorney Gen
seral Joseph S. Kaufman
claimed that Military is in "an
Impaired, in fact insolvent,
condition"
1,600 DepOSitOrs
The petition said the firm
has about 1900 depositors,
mostly overseas military per-
sonnel, with total savings de-
posts of $3.4 million.
1t also alleged that large
loans were made to other firms
operated by officers of the as
soeiation. A similar claim was
made last week against Family
Savings.
The petition said five loans
totaling $l.2 million were made
10 firms whose officers includ-
ed Mr.. Michael. who lives
at 307 Warrenton drive in Sill
Her spring, and Eric Smith,
listed as vice president of the
association, or to the Hunger
ford Co., "of which Murray
Michael is sole proprietor"
It said 10 loans totaling $1.1
million were made to Mars, Inc,
OF which Mr.. Basiliko is listed
as vice president and a director.
Assets Challenged
The petition also said that
Military Service listed as assets
$33,379 as prepaid advertizing"
And s116,080 for prepaid gifts
and premiums for depositors."
~Such items are either nom
existent, or are Of a nature
chargeable as expense against
current income" the petition
said, and have no value in hqui-
dating the assets of the associa-
ton.
Mr.. Smith, who lives at 1858
Searl terrace, Bethesda, and
operates an advertising and
public relations firm, said he
once owned stock in Military
Savings and was an officer but
had sold his stock more than
a year ago. He said he thought
he was no longer listed as vice
president.
Mr.. Smith, who has handled
campaigns for Representative
Lankford, Democrat of Mary
land, said he has known Mr..
Michael for several years and
bought stock in Military Saw
ings when it was organized in
1858. He said he handled ad-
vertising for the association
which was paying per cent in
terest on savings accounts.
He said Mars. Inc, has offices
in the 8400 block of Georgia
avenue, Silver Spring, and that
Mr.. Michael and Mr.. Basiliko
were partners in the firm.
Deputy Attorney General
kaufman described Mars, Inc,
as a real estate land company
and Hungerford Co. as IAN un-
incorporated company which
owns piece of land, indus
trially zoned, next to a junk
yard on the new bypass to
Gaithersburg."
Mr.. Basiliko was convicted
in 1856 Of conspiring to de-
fraud the State in road land
purchases and was given a
two-year sentence, which he
appealed. He won a new trial,
but pleaded guilty in 1857 and
was fined $4,000.
Eight military service loans
totaling $4,000 are past due,
the receivership petition said.
The petition said the as
sociation had a deficit of 81 ,240 |
81 the end of 1860 and a
s92,389 deficit for the first nine I
months of 1861.
Other Officers
Other officers and directors
listed for the company were |
Maj. T. E. Rohr, vice president, !
Munich, Germany; Charles H. |
Blu rton, secretary treasurer,
Route l, Germantown, Md; |
Carl Bakersfield, director, River
road, Potomac, Md, and VIII
liam N. Barton, director, 1910
North Harrison street, Arling-
ton.
Mr.. Burton said he and Mr..
Bauersfeld, who are law part
ners, handled some of Mr.. |
Michael's personal legal affairs
but had nothing to do with |
Military Savings. He said he !
was not secretary treasurer
and in fact had never been
in the place"
r The judge appointed Earl
Nash. a retired Government Of
ficial of 52O2 Chandler road
Bethesda. as receiver for the
association. A hearing was
scheduled for December 5 to-
determine whether the associ-
atoms charter should be re-
voked.
Charles w. Woodward, jr.,
Democratic member of the Gen.
eral Assembly from Rockville, |
was appointed attorney to Mr.. |
Nash.
The associations accounts
are insured with Security FL
nancial Insurance Corp. Of
Baltimore, which was the OBJ
ject of stormy hearings last
winter in the Maryland Gen.
eral Assembly.
The General Assembly passed
a law which requires that
Security Financial not insure
deposits in any single savings
and loan association in excess
OF 10 per cent of Security FL
nancials assets. At the time of
the hearings on the bill, Secu-
rity Financial's assets we're
listed at slightly. more 81 mil