Evening star. [volume] (Washington, D.C.) 1854-1972, 1961-09-09
DistrictCourt
.0KsLakeWood
SaIeProposaI

dppIONCQ llCSOJld JlOLlS-lINOlN-
ing a 81 million investment by
a financial group-that could
end in new management and
resolve the financial difficult
ties and legal wrangling OF
Montgomery County'S Lake
wood Country Club.
Judge Leonard P. Walsh said
he has given his blessing to the
drawing up of an agreement
between the club founders, the
club membership and an in
veStment group headed by
Warren M. Lockwood.
The judge said that the pro-
posal made by the Lockwood
group includes an investment
of about 100000 to complete
the l74-acre country club s
clubhouse and an additional
100000 for purchase of club
land owned by Glen Hill Club
Estates, Inc.
The proposed agreement also
would provide for about $780,
900 to buy out the interest OF
Lakewood's founders, Troy v
Post. Bill Allen and Leroy w
Pickett.
The clubs 1900 members
have been locked in a year -long
legal battle with the founders
over control of the club and
have sought court action for
an accounting of more than
100000 allegedly charged by
the founders and corporations
they set up for fees.
COnservator in Control
Since the suit was filed sew
eral months ago by the men,
bership an accountant. Vinton
Lee, appointed by Judge Walsh
as conservator, has been operat-
ing the club.
Judge Walsh, following q
conference with all parties in
the case, including Attorney R
Robert Linowes, said any agree
ment drawn up as a result OF
the coming negotiations must
be approved by two-thirds Of
the members of the club.
The judge said that one
object of the negotiations will
be to ascertain the protection
of individual members insofar
as dues. special assessments
and minimum spending re-
quirementS" are concerned. One
condition of the agreement
the judge added, will be that il
must provide no additional ex-
penseS for members above what
they have already paid in mem
berShip fees. This would spe-
officially exempt members from
having to pay-through special
assessments or other means
close to 81 million in liabilities
now facing the club.
Include Tax Lien
These liabilities include a
100000 Federal tax lier
against the uncompleted club
house, plus unpaid bills to con-
tractors and for purchase OF
furniture, trade accounts and
loans.
The judge indicated that one
of the big items that must be
worked out through the coming
negotiations is the question OF
who will have to pay these bills
Judge Walsh said the pro-
posed agreement calls for the
club board of directors to act
in an advisory capacity only
with the club itself to be oper-
ated by the Lockwood financial
group.
/ One of the proposals by this
group is that minimum
users" fee would go into OPP
Grafton, with membeds being
required to spend at least $25
a month or be charged this
amount in lieu of actually
spending it for club services.
/ The judge said the 81 million
the Lockwood group is willing
to invest is now available. In
the event an agreement is
worked out and approved by
the membership, he added, con-
struction for completion of the
clubhouse will be started i'm
mediately."
He stressed at yesterdays
discussion he had with at
torneys in the case were pure
ly general" in nature and did
not go into too many specifics
Judge Walsh said any agree
ment that is worked out with
the Lockwood group, or any
alternative plan worked out
by the clubs board of directors,
will be submitted to the men,
bership for approval.
In the event an agreement
is worked out, one condition
will be dismissal of all exist
ing litigation in the contro-
verSy. None of the three found
ers would have interest in the
club under provisions of the
Lockwood proposal, the Judge
added.