Evening star., 1961-12-27

Leon H. A. Pierson, attorney
for the association, and former
United States District Attorney
in Baltimore. the firms spokes-
man said:
Forced liquidation would
benefit only receivers who
would get commissions, auc-
tioneers who would receive fees,
and counsel to the receiver who
would obtain employment and
fees"
!. The reply further argued
that any move at closing down
the association would engender
publicity which in turn would
cause demands for Withdrawals
which might exceed the aSso-
Cations ability to meet.
A hearing has been scheduled
Tor January 2 before Judge
Powers.
: No Insolvency Charged
Attorney General Thomas B.
.Finan, on November %, had
asked for dissolution of the as
sociation charging it with mis-
use, abuse or nonuSe" of its
powers.
The firms offices are in Ia
koma Park, Bethesda and Bal
timore.
: The State did not charge in
Solvency but instead said the
associations stock transactions"
were neither adapted nor in
tended to provide funds for
1oans to it's members" or to op-
crate as a traditional savings
and loan association.
: The association in its answer
said it is still solvent. On Aug
'ust 81, its savings accounts to-
tailed $229,241.33. The (asso-
riations) has not refused any
request for the withdrawal of
funds, it said.
:. Since August 81 and until
December Is, the association
has paid out $82,844.72 to
ShareholdS and has $55.000
more in cash and in the bank.
: : This sum, the reply to Mr..
Finan's petition said, will be
ample to cover Withdrawals
until other assets can be liqui-
dated in an orderly manner to
pay out all depoSitorS in full
who may desire to withdraw"
their money.
=. The total of almost $4,000
paid out was the result of a
run" on the savings and loan
association following the filing
of the charter forfeiture action
by the State, said Peter A. Lu-
kas, A, of Baltimore. Mr.. Lukas
said he had bought control of
The association, acknowledging
however that the transfer of
the stock has not yet been
made" because of uncertainty
as to the transferability of the
Stock.
Tradition Questioned
. To the Attorney Generals
charge that American Interna-
tional did not operate in the
traditional concept and basic
character" of a savings and
loan business, Mr.. Lukas, in the
answer, said:
". . The traditional neigh
borhood basement savings and
Joan association has long since
been outmoded, and these So
called traditions not only dc
not have the force of law but
do not represent present-day
methods of operation {. . either
mutual, Federal or stock"
Mr.. Lukas said the firm has
s"several hundred" savings ac-
counts.
The answer filed today made
these further points:
: /. 1t denied the Attorney Gen.
erals contention that the as.
;Sociation traded its stock fol
real estate, placing a valuation
on the acquisition" equal only
to the par value of the stocks
so transferred"
Order Never Appealed
2. To the attorney generals
charge that the association haC
never collected any principle
or interest in connection with
Florida properties, the associa'
ton said that encouraging re-
ports" had been received by i
with respect to these proper
ties. The association said tht
mortgages on these properties
are long term obligation
which would bring very littl,
at forced sale but which
can be of substantial value
otherwise.
= 3. The association admitted
.that it had never appealed al
order of the attorney genera