Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-28
FdmiIyS&L
Shareholders
MayGet 2O%
Receiver Hopes
Autumn Payment
Can Be Arranged
BY ROBERT GUTENBERG
Star staff Writer


Star staff Writer
| The $4,000 shareholders of
the Family Savings 81 Home
Loan Association, which went
into receiverShip last Novem-
Der. may receive a payment of
20 cents on the dollar next
fall. -.
This was disclosed today by
an interim progress report"
released at a press conference
by Receiver Saul I. Stern and
his attorney, David E. Belts.
The progress report is being
mailed to the $4,000 share
holders of the association.
Asked about the 20-cent fig
ure, Mr.. Stern and Mr.. Belts
said that, if paid, this would
be an initial payment. 1t is
based on the assumption that
a decision in the Christmas
club" case is favorable to the
association.
The Christmas Club dispute
involves approximately $500, 900
which 400 persons had on
deposit in Family. They are
seeking full payment, claiming
they are not shareholders in
the ordinary sense, but a spe-
cial group within the associa-
ton entitled to be treated as
creditors.
Under Consideration
Judge James H. Pugh of the
Montgomery County Circuit
Court presently has their plea
under consideration. Mr.. Belts
said it is possible the case
might go to the Maryland
Court of Appeals. A decision
from Maryland's high court
would have to be awaited be-
cause t. amount in question,
100000, wouldA affect the
total distribution.
So far. reported Mr.. Stern,
the association has $3.50, 900 in
cash, which is 5000, 900 more
than it had last January when
the first receivers report was
made. Within the next two
months, he added, the cash
accrual should grow to 81 mil
lion.
When the association was put |
into receivership by request of |
the Maryland authorities, it |
had almost $5.5 million in saw
ings placed in 10 offices in the
State by approximately $4,000
shareholders.
However, today, said Mr.. |
Stern and Mr.. Belts, the more
realistic" figure for total saw
ings is IS million.
Figure May Grow
approximately $780, 900 of |
the earlier figure were deposits
lin Family by most of the as
sociation's eight subsidiary
companies and can not be
counted as part of Family's
obligations to its shareholders.
The 20-cent figure is based
on what is expected to be ac-
cumulated-$1 million-within
the next two months. There are
other assets yet to be liquidated.
Other payments could bring the
total higher. Mr.. Stern con-
coded, although he would not |
place a top amount on his
estimate.
The final audit and report is
not expected to be filed in the |
Montgomery County Circuit
Court until early in September.
Mr.. Stern said that even then
the audit will not be certified.
The auditors, Peat, Warwick
and Mitchell, have told him
that, short of another four to
10 months of work, a certified
audit is impossible.
Some Claims Worthless
AS with several other asso-
Citations in which receivers re-
ports have been rendered thus
far, Family's assets" proved
to be worth much less than
the values placed upon them
by the officers of the aSsocia-
ton. said the report.
In addition, many claims
against individuals have proved
to be worthless, it added.
Among these claims totaling
approximately $438,000. are a
number against well-known
figures in the savings and loan
story.
Robert Harold Symonds,
president of the now-bankrupU
Mutual Security Savings and
Loan Association, Is in debt to
the association for at least
$23,324, said Mr.. Belts. A suit
has been filled against him for
this amount.
This amount is aside from a
note totaling $21, 486, which
Mr.. Belts said was given by
Mr.. Symonds to Patuxent In
dustries, Inc. a Family sub
sidiary.
Another claim by Family is
a gainst Harold Applegarth,
Baltimore attorney, who oper-
ated Freestate and Suburban
Maryland Savings and Loan
Associations, both in receiver
ship. Mr.. Applegarth also was
a lawyer for Mutual Security.
The claim against Mr.. Apple
garth amounts to $3.50.
Under Indictment
Mr.. SymondS is currently
under indictment in Mont
gomery County for conspiracy
and other charges growing out
of the operations of Mutual
Security while Mr.. Applegarth
is under Federal indictment in
Baltimore.
Mr.. Stern and Mr.. Belts said
-