Evening star., 1962-04-01
GentIeCourse
Tried on S&L
In Baltimore
By ROBERT GRUENBERG
Star Staff Writer

star SLaII Wrlbe1
Is Maryland perfecting an
effective new tool for dealing
with the faulty savings and
loan firm-uSing gentle per-
SuaSion instead of the knock
out" technique?
Such a solution to the 4
troubles of some Maryland
savings and loan firms-which
are still being reviewed by the
State despite the slackening of
court developments in the last
several weeks-Seems to be in
the offing.
The question arose last week
after a new management
took over the Baltimore Co.
lonial Mutual Savings & Loan
Association, a SO year old
firm with about SIS million in
savings. /:
Henceforth, a Baltimore judge
ruled, the firms operations
must be accounted for to Al
bert w. Ward, State director
Of assessments and taxation.
New funds may be placed in
the association. but must be
segregated from the old. Mr..
Wards consent is necessary for
any Withdrawals of the old
funds. The new directors may,
however accumulate new saw
ings and make investments or
payouts from these funds
freely.
Not in Receivership
The status of the association
is not a receivership-which
nearly always spells liquidation
for a firm-nor is it a con-
servatorship," in which the :
main effort is for one man
Mr.. Ward-to attempt to re-
Suscitate the association over a
period of months or years.
Since Maryland's new regu-
latory law went into effect last :
June IL, three associations have \
been placed in his conservator-
ship.
I've been doing nothing /
these last several weeks but 4
signing my name to docu- I
mentS," said the 55-year-old :
career official who also super 3
viSeS all property assessments. 4
maintains the States corporate /
records. and makes personal 4
property assessments on 10000 q
corporations. &
Not all savings and loan as s
sociationS which we deem i'm 8
portant to take action against 8
will lend themselves to this s
light treatment" he added. q
Not Always Feasible &:
las an example, we have had 8
some associations in which such -
action was impossible-where y
there were no orderly books. 81
no systematic records, and an B
extremely shaky investment &
policy. y
But where an institution #
has a chance to work things IS
out. it is probably better to get #
someone who knows the mort s.
gage business and let them try &
and work it out" 81
This is much better than a 81
forced sale of assets. What it &
amounts to Is a conservator- #
ship without the formal ruling b
of a conServatorship." q
Mr.. Ward, who with Harry I:
B. Wolfe, jr., supervisor of the !:
savings and loan division in his &
department, has a principal I;
part in carrying out State pol 8
icy, is not ready to concede &
that the State is completely out 1:
of the woods in cleaning Up the 1:
savings and loan business.
Must Have Consent
But in the cases Of contem- 4
plated conServatorShip-which I
by the way, must be by the con-
sent of the association because !:
the State cannot force this on
a firm-if we can find a salts
factory management such as in
Baltimore Colonial, we're ready
to listen to proposals.
IF a firm won't agree to
conservatorship, then our only :
alternative is to seek a receiver
ship"
Since last June IL, when
State officials started enforc-
ing the savings and loan laws,
five firms have been forced
into receivership, three into con-
servatorship, one into Federal
bankruptcy. a request for re-
ceivership is pending on one,
and three have been forced out
of business into another field.