Evening star., 1962-02-15
More Illegal Acts
By Loan Firms Seen
State to Press
Investigation in
Prince Georges
BY ROBERT GRUENBERG
Star Staff Writer

BY ROBERT GRUENBERG
Star Staff Writer
James P. Garland, State as
sistant attorney general, said
today that several indications"
of illegal conduct calling for
further action have been un-
covered in the savings and loan
situation in Prince Georges
County.
Mr.. Garland, who is in charge
OF all savings and loan receiv-
erShip actions, made the state
ment after meeting with Prince
Georges States Attorney Will
liam Kahler in a two-hour con-
ference yesterday.
Also at the meeting were re-
ceivers George T. Burroughs
for the FreeState Savings and
Loan Association of Hillcrest
Heights and Baltimore, and
Thomas R. Brooks for the Sub
urban Maryland Savings &
Loan Association of Suitland,
and James H. Norris, jr., special
counsel assigned by the State
Attorney General to assist in
any prosecutions.
Meanwhile Montg cry
County Circuit Court Judge
Kathryn Lawlor Shook an
nounced the selection of a
foreman for the 23-member
grand jury. scheduled to con-
vene March S.
He is Jay Porter Conger, SO,
of 1929 Woodlawn avenue.
Chevy Chase, part owner of a
laundry at 437 New York ave-
nue. NV. Mr.. Conger, a Wash
ington area resident all his
life, ran on the Republican
ticket for Montgomery County
Council in 1858.
Records Still Missing
Mr.. Garland reported that
, the Prince Georges receivers
still are trying to find complete
books and records of the asso-
Citations so that a full audit
can be made.
The receivers have been ad-
vised, he said, to have account
ants work on the books which
are available however incom-
plete they may be.
Mr., Burroughs said auditors
will begin work on Suburban
Maryland's records today.
Suburban Maryland was
placed in receivership January
, 80 by Circuit Court Judge
Ralph w. Powers, ruling on a
State petition that the firm was
inSolvent "and is in substantial
violation of applicable law e.
abusing and miS,lSing its cor
porate powers and franchises.
In placing Freestate in re-
ceiverShip January IT, Judge
Powers characterized its opera
; tion as Extremely reckless"
after the State charged it was
not run as a Savings-loan as
sociation but solely for "the ad-
vantage of the beneficial owner
of the guarantee stock"
States Attorney Leonard T.
Hardy, who held conferences
with four Montgomery County
receivers last week, said he
will meet again next week with
Mr.. Garland and Mr.. Norris to
review his findings.
Military Service Sues
i Meanwhile, one of the closed
firms, Military Service Savings
& Loan Association of Silver
Spring, filed suit in Baltimore
yesterday asking for a deci-
sion on whether the Security
Financial Insurance Corp. must
honor its insurance policy on
the associations $3.6 million
in savings.
Receiver Earl A. Nash sought
the opinion in a suit filed in
Superior Court of Baltimore
City. He said the risk firm,
the only private State
chartered insurer of savings
and loan associations, had "in-
dicated' it would not pay any
losses because, he had been
told, Military Service violated
terms of its policy prior to No
IVemDer 2 when he assumed the
job of receiver.
Mr.. Nash said he also was
directed by the court to pay
Military Services $1,005-a-
month insurance premium to
la court escrow fund rather
than to Security Financial,
pending a decision on the in
surance firms liability under
the contract still in force.
In another development Rob-
ert Harold Symonds, president
of the Mutual Security Savings
/ & Loan Association, was or
dered to file a report by Mon
day in Baltimore Bankruptcy
Court describing his firms
property and naming creditors.
i The association has been taken
out of State-supervised re-
ceivership and put into Federal
jurisdiction.