Evening star., 1962-01-04
SAVINGS

sonable solution to this matter"
He cited the SIS million the
firm has in the banks.
That's beside the point"
replied Judge Shook sharply.
She added the loan company
was operating at a deficit.
McKeever Named
Following her finding, Judge
Shook appointed Mr.. McKeever,
a real estate man, as the re-
ceiver.
Mr.. McKeever, At, of 1919
Delfield street, Chevy Chase,
is a member of the firm of Fig
g. McKeever, 8641 ColeSville
road, Silver Spring. His partner
is Lawrence Fig, a son of Sam
uel Fig, Montgomery County
real estate developer.
Judge Shook then appointed
Mr.. Sanger as Mr.. McKeever's
lawyer.
well notify shareholders by
mail as soon as we can gather
together some information. Our
duty is to do everything pos
sible to safeguard their inter-
est" Mr.. McKeever said.
The receivership petition, was
drawn by Attorney General
Thomas B. Finan, Mr.. Kauf-
man, and assistants attorneys
general James P. Garland and
Thomas w. Jamison III.
Edlin Control Seen
In their arguments before
Judge Shook, they said that
the association has been and
continues to be a personal ope-
ration" of j. Kenneth Edlin.
Edlin was convicted Of mail
fraud in 1941 and pleaded mo
contest" to similar charges De-
cember 8 in Baltimore Federal
Court. His case was continued
to January Is.
The First Continental receiv-
ership petition recited seven
instances of unsafe and un-
sound operation"
Each alone affords a basis
Of relief here (receivership and
charter forfeiture)" it added.
These included:
l. Disbursements of more
than $60,0 for legal and other
services to Edlin and his wife,
Pearl. Edlin is not an attorney,
and his wife was paid separately
as secretary treasurer, it said.
I'm arguments before Judge
Shook Mr.. Kaufman said other
fees, went to other persons, in
cluding lawyers.
(Among these he identified T.
Lamar Caudle, assistant at
torney general IN the Truman
administration. Caudle was
jailed for his role in a tax case
which arose while he headed
the Justice Departments tax
division.
(He identified a law firm as
johnson g. johnson" before
the court, as receiving fees.
Outside of court, State aides
said the firm was located at
Berlin, Md, the home of Repre-
sentative Thomas johnson,
Democrat from the Eastern
Shore.)
2. The firm had $3.7 million
in shareholder accounts, and
$4.5 in loan commitments-tied
up in only six loans. Only one
loan, for $500, was to a share
holder (saverl, while another
was for $1,000.
1.-THE balance Of the loan
commitments consisted of only
four loans made to corpo-
rations engaged in speculative
real estate deyelopmentS," it
added.
8. A $1,000 loan was made
to a Bernard j. Litzinger in
Deerfield Beach, Fla. This is
outside the 50-mile radius of
the principal Maryland office
of the association, and is there
fore against the law, it said.
The loan is not secured by real
estate in Maryland, it added.
4. One of it's loans. for $798,-
220, made to Engineering &
Development Corp. of Mary
land, Inc, is 'in excess Of the
real estate" put up as security
for the loan.
The fair market value Of the
property is $483,000 while the
top appraisal of the property
made to First Continental is
$500, ,350-almost 100000 less
than the loan itself.
5. A loan of $843.750 to the
Leisure City Land Corp. for
development of property near
Brooke, in Stafford County,
Va, is not a first lien on the
property.
The deed of trust involved
in this transaction is "subordi-
nate to another deed, of trust
in the amount of $2,875, 900"
from Leisure City to trustees
Clay Kendall and Frank Mon
cure. (Records show they are
trustees for Representative
. Boykin, Democrat Of Alabama,