Evening star., 1961-12-11
Closed Firms Cash
Is Tenth Of Savings
Actual Worth
OF Looms Still
Undetermined

The receiver for the Mill
tary Service Savings and Loan
Association has collected so far
only one-tenth of the more
than SO million put into the
firm by shareholders.
The receiver. Earl A. Nash,
said cash assets on hand total
about 1894. 900. He said they
include $4,000 found in cash
when he took over. and about
$l83,000 repaid since then on
loans made by the association.
The remainder of the 1884,
600 is accounted for by inter-
est payments on the two loans
plus some small payments on
other loans, Mr.. Nash said.
He said he is unable to tell
how much more would be COL
lected for the shareholders if
the firm were liquidated.
Officers of the firm are con-
testing the receivership action
and have asked the Montgom-
cry Circuit Court to return con-
troll OF the firm to the officers.
Attorneys for the firm also are
ccntesting Maryland's new law
under which the association
was placed in receivership last
month.
The association was placed
in receivership and its doors
closed November 2 after the
Maryland Attorney General
charged it was insolvent.
Loans Worth Undecided
Yesterday, Mr.. Nash said
auditors still have not deter
mined the actual value of 81
outstanding loans, which have
a face value of approximately
So million. A large portion OF
the loans were made to firms
which were operated by officers
OF the savings and loan firm,
according to the Attorney Cen
erals receivership petition.
Mr.. Nash said an investiga-
tion showed that security for
most of the loans appears to
be second or third mortgages
on the properties. In one case,
he said, it has not been deter
mined whether there was any
security for the loan.
I The s1S3,OOO repaid was on
two Of 10 loans made to Mars
Inc, Mr.. Nash said. He said
Mars still owes $920,342. Listed
as president of Mars, Inc, is
Constas Gus Basiliko, who was
convicted several years ago of
conspiracy to defraud Mary
land on highway rights-of-Way
purchases.
Treasurer" Denies Role
Mr.. Nash said he has re-
ceived a notice from Charles
Burton of Germantown in
which Mr.. Burton denied he
has ever been an officer or di-
rector of the savings and loan
association. The receiver said
minutes of the associations s
board meetings listed Mr.. Bur-
ton as present" and the min
utes for last April showed him
elected treasurer of the associ-
alton.
| When the association was
placed in receivership, Mr.,
Burton, a lawyer, told a re-
porter that he had never had
any connection with the firm
and had never been in the as
sociation's office. He said he
had handled some personal le-
gal work for the association S
president, Murray Michael, OF
BOT Warrenton drive, Silver
Spring.
i. Mr., Nash told reporters that
he cut a considerable amount
from company expenses the
first day he took over as re-
ceiver by removing several per-
sons from the payroll. He listed
these as Mr.. Michael, who was
being paid $4,000 a year; Gen
Ray A. Dunn, USAF Cretired)
who carried on promotional
services and liaison with men,
bers of the armed forces, $5,20C
! year; Ted E. Rohr, a retired
| Army major incorporated the
firms branch in Munich, Ger
! many. at an $4,000 salary. and
Mr.. Michael's secretary, $4,000
The receiver also said he paid
the October premium for the
insurance which the firm car
ried on it's savings accounts
with Security Financial Insur-
ance Corp. This amounted to
$1,025 for the month, he said
, Mr.. Nash said the insurance
. firm will not become liable until
the association is actually liq-
; Undated and it is known defi-
nltely how much the share
holders will get back. 1t in
sured each account for $4,000
the associations literature said