Evening star., 1962-03-06

u
ing to determine If, when and
how much Security Financial
VIII pay on Military's savings
accounts. Freestate has been
informed by the insurance firm
that Freestate's alleged viola
tions of the insurance agree
ments has nullified its policy.
Military Service also is await
ing a separate refund of about
$122,000 which Mr.. Nash says
was contributed by Military's
officials to a special trust fund
maintained by Security Finan-
cial. The attorney general ruled
the fund illegal and ordered
the insurance company to re-
turn the contributions to it
made by nine other associa-
tions which are not in receiver
ship.
Meanwhile, the insurance
company, controlled by two Ca
madam firms whose ownership
has not been disclosed, is it.
self under investigation by F.
Douglass Sears, State insurance
commissioner.
1t appears that the small
Independent associations may
accept the proposed State-au-
thorized and operated savings
and loan insurance plan as a
selling point to attract the in
surance-conscious public.
The proposal calls for a nom
stock, non-profit corporation
to insure savings of up to $780,
900 in State-chartered institu-
tions which do not qualify for
or want to insure their savings
in the Federal program.
The corporation, to consist
of at least rs member savings
and loan organizations, would
set up a central reserve fund.
Membership would be optional.
To be known as the Maryland
Savings-Share Insurance Fund,
the corporation also would
seek to promote the members
ability to have cash on hand
quickly in case of any extra
ordinary need. Before obtain
ing membership, the association
would need approval of State
regulatory officials administer
ing the savings and loan law
and the corporations directors.
Arguments Pro and Con
State backed insurance plans
already are in force in Mas
Sachusetts and Ohio. In Mas
sachusetts, State insurance is
mandatory for State e-chartered
associations known as Coop
erative banks. The Ohio State
insurance plan is optional with
savings and loan firms, as
Maryland's would be.
Opposition to the Maryland
proposal has been expressed by
Stephen Slipher, legislative di-
rector Of the United States Saw
Eings and Loan League. Aside
from the confusion possible in
the public mind over three saw
ings and loan insurance plans
Federal, State and private)
Mr.. Slipher argues:
1.-THE Federal Savings and
Loan Insurance Corporation is
already required to insure as
sociations which meet its
standards. Presumably aSsocia-
tions that wouldn't qualify for
Federal insurance wouldn't
qualify for State insurance un-
less the State program used
lower eligibility standards"
To this, Robert Stocksdale,
secretary Of the Maryland
League of Building, Savings and
Loan Associations, a 120-mem-
ber group, many of whose mem
bers are the small, uninsured
neighborhood firms, replies:
1--WE also are in favor of we'll
run firms with high standards.
But the FSLIC has not been
willing to grant insurance un-
til savings accounts reach ST.
million in size. There are many
savings and loan associations
perfectly content to remain
small. Who's to say that the
small well-operated association,
which does not wish to grow,
should not be protected?"
TOmOrrOw-Savings and Loan
and Politics)