Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-02-22

* by the House of Delegates,
appoint a committee to study
persons who have lost money in
Prince Georges County, intro
duced his proposal in the form
of a resolution in the General
Assembly.
Il think the State of Mary
land is under a moral obliga-
ton to do something for these
people," Mr.. Sickles said.
While it is true that only a
tiny percentage of the savings
and loan industry has failed,
this fact is of little comfort to
the over 10000 shareholders
who find $14 million of their
savings in jeopardy. These
peoples needs cannot be swept
under the carpet and ignored"
Mr.. Sickles said.
Suggestions Included
The resolution suggested
study of the formation of a
savings and loan liquidation
corporation, either formed by
the State or by the savings
and loan industry, to minimize
the costs of liquidation and
conserve the assets of firms
closed under State court action.
Mr.. Sickles, a candidate for
Congress at-large in the May
Democratic primary, earlier
proposed that the House of
Delegates conduct a grand
inquest" into Maryland's tan
gled savings and loan situa-
ton. This was turned down
overwhelmingly by the House
which didn't want to get in
volved in a complicated in
vestigation during the current
short session of the Legisla-
ture.
Meanwhile, it appeared likely
that the House Banking and
insurance Committee would
approve the establishment of
a State program for insuring
accounts in savings and loan
associations.
Edward McNeal, Democrat
OF Baltimore, who is chairman
of the banking committee. said
today he hadn't heard of any
serious objection from mem
bers to the insurance plan.
Testimony Favorable
The committee yesterday re-
'celved more than two hours
OF testimony on the insurance
plan at public hearing, most
OF which was favorable.
Several State officials IN
dorsed the insurance program.
Under a bill before the Cen
eral Assembly, the State would
authorize the establishment of
a corporation which would set
up a fund to insure savings
accounts.
John S. Shriver, chairman
OF a systematically appointed
commission which drafted the
bill, told the hearing that the
public interest" required &C
ton on the insurance bill at
the current session of the Leg
islature.
The plan also was indorsed
by State Insurance Commits
sloner F. Douglass Sears and
Deputy Banking Commissioner
John Hospelhorn.
Other supporters
Also giving support was the
League of Building,
Savings and Loan Associations.
Robert Stocksdale, executive di-
rector of the league, said that
because of the recent savings
and loan scandals the public
has become increasingly insur-.
ance-conscious."
The only opposition came
from Carl Gottschalk, executive
of another savings and
.oan league composed of Mary
and firms which are insured by
The Federal Savings and Loan
Insurance Corp.
Mr.. Gottschalk said the pro-
oosal is premature" and that
,he State should wait for the
savings and loan industry to
become Stabilized" before con-
'ldering a State insurance plan.
Some members of the Bank
ng Committee implied that the
from federally-in-
'ured associations might stem
rom a fear of more competi-
ion from the State chartered
associations if they become in
ured through the State plan.
Mr.. GottSchalk said the cor
,oration to be set up under the
Jill would be "just like Security
Insurance Corp"
security Financial is a private
insurance company which was
he target of a bitter contro-
'ersy in the General Assembly
asst year. Legislation was en-
Icted to restrict its operations.