Evening star., 1962-05-08
Says mobility
To Obtain Dutu
Led to Resignation
BY ROBERT GRUENBERG
Star Staff Writer


Democrat Of California, testi-
fled for 20 minutes today before
the Montgomery County grand
Jury investigating savings and
loan associations.
The tall. tanned 54-year-old
Congressman told reporters
afterward that he had at
tempted to learn the workings
of the Family Savings & Home
Loan Association in 1856 and
resigned when he was unable
to do so.
Family Savings is one Of four
Montgomery County asSocia-
tionS being investigated by the
grand jury under the direction
of States Attorney Leonard T.
Hardy.
Mr.. Hardy interrupted testi-
mony on the First Continental
Savings g. Loan Association OF
Chevy Chase. another Of the
closed firms. to hear Mr.. Roose-
welt. 80.
Not Paid for Services
While the lawmaker could
not disclose what he told the
panel he emphasized TO re-
porters:
II have never been a paid
official Of Family. did serve
as the honorary president Of
the American Council Of Inde-
pendent Savings and Loan AS
soeiations. I drew six months
pay" Pa
This amounted to $4,000, he
said, half of the annual salary.
Asked why he resigned, Mr..
Roosevelt replied:
II did so primarily because I
was unable to secure the af-
filiations of the officers Of
Family"
He explained that he wanted
to learn more of the business
dealings that Family's officers
had with other firms whose
officers also were part Of the
Family corporate structure.
Investigated Setup !
when I went in iTnmedi-
ately put my own attorney and
auditor to work"
Mr., Roosevelt said he at
tempted to learn this informa-
ton from John @. Persian,
president of Family. since held
for the grand jury on larceny
after trust charges, but was un-
successful.
He said that because he was
unable to- obtain the informa-
tion he wanted. he resigned in
August, 1858.
Mr.. Roosevelt said he was
asked to take the job as head
of the council by Sherman 8.
Cohen, attorney and a principal
official in the Family Savings
g. Home Loan Association, 50
that II could get some practical
experience" in the independent
savings and loan field.
Tv Actress Testifies.
other witnesses before the
grand jury today included Miss
Shirin Melany, 4707 Connect
icut avenue NV, a television
actress for the United States
Information Agency. N
After her appearance Miss
Melany told reporters that she
had deposited 5000 in First
Continental on November 81.
1861. She withdrew the money
a month later but the check
bounced, she said. 4
At the time she placed the
money with the firm, she said,
they gave me the impression
the money was insured"
Philip Ballerino. So, Of S07
North Jackson street. Arling-
ton. Va, q CAB statistician
who had $1,000 In First Con-,
tinental. also testified. Now
the organizer Of a Shareholders
committee numbering approxi-
,nately 100 persons with about
sl50.000 tied up, Mr.. Ballerino
spent 10 minutes before the
jury. He. told reporters later
that the firms officials had
told him his money was in
sured with a Chicago mortgage
insurance firm.
Money in 8 Associations
Edward L. Meyer. Of 1907
Plyers Mill road. Silver Spring,
who had money in three of the
associations, also testified.
He was able to withdraw $734
from First Continental, he said,
although he still has $4,000 in
the now bankrupt Mutual Sc
curity Savings & Loan Associa-
ton of Silver Spring and $14,-
900 in the Military Service Saw
ings & Loan Association.
Appearing angry as be left
the grand jury session, Mr..
Meyer exclaimed, IT hope this
doesn't turn out to be q three
ring circus prior to the pri-
mary"
. other First Confidential
shareholders called included
Mrs. Mildred Mitchell u 1900
Cathedral avenue NV and
Angelo p. Zatzos, Of 2214 Phil
lips road, Adelphi. Md.
This morning John q. Nc
Keever Of Silver Spring, re-
ceiver for the First Continental
Savings g. Loan Association
ended a total of 3H4 hours Of
testimony.
The 49-year-old businessman
who took over the firm January
8 gave "an excellent. concise,
clear and coherent presentation
right to the point" said
States Attorney Hardy.
Two grand jurors approached
him ana ffaavsArod t~s,.~ -. ~