Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-01-09
an|nsurance
Firm Replaces
3Top Officials
BY ROBERT GUTENBERG
Star Staff Writer

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BY ROBERT GRUENBERG
Star Staff Writer
A change in the lineup of
officials in the Security Finan-
cial Insurance Corp, the storm
ridden private insurance firm
for a number of Maryland saw
ings and loan associations, was
announced yesterday.
The three new directors Of
the five-man board included,
according to the Associated
Press:
/. David R. Vine, Of Toronto.
Canada, formerly identified as
a holder Of a majority of stock
in Security Financial.
2. Thomas w. Milligan, a
Chicago railroad supply and
insurance executive.
8. Richard P. Rosche of
Reisterstown, Md, who was
also named secretary-treasurer
At the same time a Chicago
lawyer, Henry McGurren, cast
the majority stakeholder votes
for the new directors, at a
meeting which one Of the
Observation-Disclosures, K. George
Christian, said was held yester-
day in the Baltimore offices of
SFIC.
President Replaced
Those replaced were the pres
ident, David F. Woods of Balti-
more who said he had policy"
difference with representatives
of the majority stockholders,
Thomas Paul Raimondi, Bal
timore lawyer, and William A..
Peat, jr., who had also been
treasurer.
Edward J. Lynch, resigned as
vice-president but remained as
director.
In addition to this sudden
shake up, the firms chief
counsel, j. Thomas Ellicott, re-
signed. Mr.. Ellicott was the
attorney for the firm since its
founding in 1859.
Until January /, he was also
an associate in the Towson
(Md.) law firm which included
Maryland Majority Floor Leader
A. Gordon Boone. fellow Dele
gate John Mcguire, and Rep
resentative Brewster, Democrat
Of Maryland.
Mr.. Brewster is a candidate
for the Senate this year.
Difference in Legal Work
He said the law firms re-
organization was prompted by
a difference in the legal type
of work handled by the other
partners, including Mr.. Ellicott.
He added he never had any
interest or received any fees
from Security Financial.
This was the second major
Shakeup in less than a year for
SFIC, which was a center of
controversy during passage of
Maryland's new savings and
loan legislation.
In July. 1861, a group of
Baltimore County Democratic
political figures and a Demo-
cratic national committeeman
dropped out of the firm.
They were Mr.. Boone, who
had disclosed that Mr.. McGur-
rem had given him $450,000 to
set up SFIC; Delegates Ma
guire and Roy N. Staten; for
mer State insurance commits
sioner Claude A. Hanley, and
Democratic National Commit
teemm Michael j. Birmingham.
"Mere Letter" Rejected
While the board shuffling
was going on yesterday State
Insurance Commissioner F.
Douglass Sears rejected a let
ter from SFIC, described as an
interim filing" of an insurance
rate increase.
1--WE are not accepting a mere
letter as filing" said Mr.. Sears.
The letter had been sent to
him by Mr.. Ellicott before the
latter's resignation as counsel.
It was in response to a warn
ing by Mr.. Sears to the now
deposed president, Mr.. Woods,
that SFIC could not charge
advance premiums" on insur-
ance.
The advance premiums"
idea was disclosed by SFIC Of
ficials recently after the State
last month moved against nine
Maryland savings and loan as
sociations. They were forced to
drop their contributions to
SF1C's guaranty trust fund"
Attorney General Thomas B.
Finan in a letter in December
to State Director of Assessments
and Taxation Albert B. Ward,
who administers the savings and
loan law, had ruled the trust
fund illegal.
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