Evening star., 1962-05-09
Grand Jury Hears
johnson on S&L
Congressman
Before Panel
81 Minutes
By ROBERT GRUENBERG
Star staff Writer

fused to answer reporters
questions afterward.
The Congressman also sent a
county policeman to States
Attorney Leonard T. Hardy
with a request that pictures
taken Of him as he approached
the courthouse be suppressed.
Mr.. Hardy sent a detective,
Norman Balderson, hack to the
waiting politician in a car with
a message: II have no authority
to suppress any pictures taken"
Mr.. johnson, q former States
attorney Of Worcester County,
had a single answer for re-
porters who tried to question
him on his role In the savings
and loan situation in Mary
land.
Declines Interview
Il was very happy to assist
the States attorney and fully
cooperate with the State in
this matter.
"As to any testimony, that
will not be divulged."
The Congressman ignored
questions on whether he had
received q report from the
Federal Bureau Of Investigation,
which he asked to make an in
quiry last year after newspa-
|pers stories were published
linking him with the First Con-
tinental Savings q Loan Asso-
ciation Of Chevy Chase.
He also declined to comment
on the rental Of an office by
him in Snow Hill, Md, for use
as a branch Of First Continen-
tai which never opened for
business.
First Continental Is one Of
four Montgomery County saw
ings and loan associations re-
portedly under investigation by
the grand jury. First Continen-
tai has been closed by court
order since January 3.
! Mr.. Johnson's appearance
preceded that Of o second Capt.
tol Hill personality slated for
testimony later today, Repre-
sentative Boykin. Democrat of
Alabama.
Earlier today the grand Jury
had heard from Assistant At
torney General James p. Car
land, one Of the States chief
legal aides In pushing the saw
ings and loan receivership ac-.
tions. /
Probe Is Expanded
Meanwhile, Mr.. Hardy an
nounced late yesterday he Is
expanding his investigation to
include a fifth savings and loan
association. now the target Of
State-receivership action.
This is the Maryland Thrift
Savings q Loan Co. of SlI7
Georgia avenue, Silver Spring.
Much Of the firms operations
have already been frozen as a
result of q court order about
three weeks ago when the re-
ceivership action was filed.
Mr.. Hardy said he will recall
the grand Jury II necessary to
hear evidence in connection
with any charges he deems APP
plicable.
The current probe involves
First Continental and the fol-
lowing savings-loan firms, all
closed since last October: Mill
tary Service, Mutual Security
and Family Savings and Home
Loan.
Prime mover in First Conti-
mental. say State and Federal
authorities, is ]. Kenneth Ediin,
"a, Of Miami Beach, who on
Monday begins q six-month
prison term for a mail fraud
growing out Of the operation Of
a second savings-loan associa-
ton, First Colony Of Prince
Frederick and Elkton, Nd.
Land Involved
Mr.. Boykin was scheduled to
testify late yesterday. How
ever, the States attorneys office
reported he. was unable to
secure the perfunctory-but
necessary - House permission.
Mr.. Hardy said he was assured
this would be done today.
The panel, 1t is understood,
wants to question Mr.. Boykin
about q negotiation between
the Tensaw Land & Timber
Co. I'm which he was a principal
figure and Leisure City Land
Corp, q First Continental real
estate venture.
Tensaw controlled a tract of
more than $500 acres near
Brooke. Va, on which the
luxury-type housing develop
ment. to include a marina, was
10 be built.
More than 50 million was
in the deal.
A close associate Of Edlin's,
Jackson D. Rains Of Miami,
was a surprise witness" late
yesterday before the grand Jury.
Mr.. Rains, whose name was
not on the witness list an
bounced last week by Mr..
Hardy. was chief bookkeeper
or a number Of Edlin enter
'rises, according to the States
Attorney.
Earlier yesterday Represent
tive Roosevelt, Democrat
4 California. who for two
months In 1858 was chairman
4 Family Savings, spent about
o minutes before the Jury.
Edward L. Meyer Of 23O7
Flyers Mil road. Silver Spring,
Vho had money In three 81 the
associations, also testified.