davidaulloa/AmericanStories huggingface dataset:
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-17
Crime Council
Talks 10 Open
In ; Precincts
Citizens Urged
To Offer Advice
On Problems

The procedure to be followed
by the Commissioners Crime
Council at its public hearings
which begin tomorrow night
were explained yesterday by
Mrs. Nina Trevvett, the Coun-
ellis staff co-ordinator.
The first of the series of
neighborhood hearings will be
at 8 pm. tomorrow in the First,
Eighth and Tenth Police Pre-
cinctS. The meetings are ex-
pected to last two hours.
Mrs. Trevvett said short
statements concerning crime
conditions in the neighborhood
will be made at the beginning
Of each hearing by the Cap
tain of the Police Precinct and
representatives Of the schools,
churches, area board of the
Commissioners Youth Council,
and the Civic and Citizens
Associations in the precinct.
Suggestions Urged
"The opening statements will
be short to set the tone for
the meeting" she explained.
THE major portion of the
meeting will be open to the
citizens attending because we
want them to tell what they
think are the crime problems
in their neighborhood and offer
constructive suggestions about
what should be done to combat
the problems"
The Crime Council was or
ganized June 4 to provide a
direct channel through which
citizens. alarmed by the Dis
trict's high crime rate, could
express their concern to the
Commissioners. The council
idea was suggested by the Dis
trict of Columbia Chamber of
Meeting Places Listed
Tomorrow nights meetings
will be at Roosevelt High
School, Thirteenth and Upshul
streets NV, in the 10th pre-
cinct; at Wilson High School
Nebraska avenue and Chesa-
peake street NV, in the eighth
precinct, and at Seaton Ele.
mentary School, on I street be.
tween Second and Third streets
NV, in the first precinct.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-17

ments have not materialized,"
the report said at one point.
According to the study, ap-
proximately $1.235.O00 in loans
were made by Murray Mi
chael, president of Military, TO
three companies in which he
was the principal.
Another $965,0OO in loans is
listed to Mars, Inc. in which
ConStas Gus Basiliko, a close
associate of Mr.. Michael, is a
principal.
BasilikO Once Convicted
Mr.. Basiliko was convicted
five years ago of conspiracy to
defraud the State in road land
purchases. Appealing the two
year sentence levied on him, he
wound up paying a fine Of
$4,000 after pleading guilty in
1857.
Mr.. Michael and Mr.. Basiliko
are currently under indictment
in Montgomery County on a
variety of charges including
conspiracy and embezzlement.
They have not yet entered
pleas.
Transactions between Off
GERS and their controlled COM
panies were "rrevocably inter-
twined," said the report.
The array of gifts offered to
attract the $3.6 million in de-
positS were dazzling. They
ranged from can openers to a
piano and deep freeze.
The value of gifts to a per-
sons deposit ranged up to 80
per cent. One woman, overseas,
who put $1,000 in the associ-
alton, received two gifts-a set
Of dishes and a typewriter
which cost 1925, the report said.
IF the deposits had leveled
off, the association would
probably have foundered be-
cause the spread between its
then principal income source,
interest on loans C per cent?
and the dividend rate Is per-
cent? credited to accounts
would have been insufficient to
carry costs of operations, es.
. pecially when considerin s
amortization of advertising anc
gifts" the study explained.
MichaeI's Salary Rose
Mr.. Michael, the report said.
was paid a modest salary in
the early days of operations.
Elected president on January
"a, 1859, one month after the
firms founding, "his direct SAL
airy rose to an annual rate of
$4,000 per year in January,
1851" said the report.
1T appears that at no time
was there any effort made to
create a loan portfolio suitable
to a normal savings and loan
association. The loans seem to
be directed solely at supporting
the speculations of the princi-
pals" it continued.
Loans to Related Parties
The loans were made "in
practically all cases to related
parties" title searches were not
always a prerequisite; record
ing of lien documents were de-
layed up to a year the report
noted.
Military's savings accounts
were insured up to $4,000 each
by the Security Financial In
surance Corp, of Baltimore,
which itself is now under Fed
eral grand jury investigation.
But the report afforded little
hope of recovery of funds from
this source because SFICs net
worth, as of September 80,
1861 is $469, 349, it said.
Military may also have vio-
lated the insurance agreement
by making loans in excess of
100000 without the consent of
the insurance company. The re-
mort noted
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-17

Inc report showed that the
percent of estimated realiz-
able assets to known habili-
ties"-or the return to the
shareholders on each dollar of
savings was a shade under "A
cents (43.59). Mr.. Nash en-
phaSized strongly. however,
that the figure was "a most
optimistic view" He warned
against shareholders regarding
it as a firm commitment.
IF the court told me to liqui-
date tomorrow we couldn't pay
more than 10 cents on the dol
lar" he said at a press confer
ence in connection with the
report yesterday.
Figures Assumes Payments
The Accent figure is most
optimistic" because it assumes
that mortgage loans made by
the association will be paid off
completely, and other favor
able developments, he said. The
estimate also fails to include
receivers expenses.
The loans were made on a
s. to Swear basis, he said.
Some are not due. and he can
not force payment, he eX-
planned.
Liquidation, he said, "is two
to four years off" unless bor-
rowers pay ahead of schedule
or unless the courts order the
sale of evidences of debt. which
would bring an amount less
than the debt.
AS of November 2, when it
closed. the report said, the firm
had $1,688, 760 while it's liabil-
tiles were 1888, 958, or a def
cit of $1,95O,198.
Current cash on hand, in
GLIDING U. S. Treasury notes
amounts to $365,000. This is
the basis for Mr.. NaSh's Off
hand estimate that if immedi.
ate payments of the saver'I
$3.6 million were made, i
would not amount to NOR
than 10 cents on the dollar.
The financial study was pre-
pared by Mr.. Nash, his attor
ney Charles w. Woodward, jr
and the certified public &C
counting firm of Raymond I
Lang g. Co., 1885 G street NV
Practices, Loans Scanned
1t combed the accounting
practices, loan policies, gift
disbursements and other activi-
ties of Military.
The firm, at 909 Pershing
drive, was forced into receive
ship November 2 with $50 mil
lion in 1923 savings accounts,
many of them held by overseas
military personnel and their
dependents.
Two of the principal figures
standing out from the hundreds
in the 21-page report were: of
$3,126,433 in loans made by
Military. a total of 81, 484,3 1891
are indicated recoverable" less
than half, Mr.. Nash noted.
OF the $3.l million in % real
estate loans, approximately $2.8
million is still outstanding.
AS is the story in other saw
ings and loans association
State-ordered audits, the loans
were made on property already
heavily encountered with mort
gage debts owed to others.
Loans Exceeded Current
Appraisals
In addition, according to a
detailed schedule accompany
ing the report, in nearly all
cases the current appraisals of
the property, on which loans
were made, are far below the
amount of the loan.
Virtually all of these ap-
praisals were made on the basis
of improved real estate, at its
most valuable use. In most
cases these projected improve
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-17
Military Service
SCI $1.9 Million
In Red When Shut
Return to Stockholders Figured
'OptimisticoIIy' at 44c on Each 81
BY ROBERT GRUENBERG
Star Staff Writer

The Military Service Savings Association
than 81 million in the red when forced to close by the
State last fall
This disclosed yesterday following the filing of the
first fuscae financial report the firm the Montgomery
County Circuit Court by Receiver Earl A Nash
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-17
Work Speedup Under Way to Finish
Waterfront BuIkheod by Year End

| Lie Wdc1Au4SGOn O1AdIlAlcl
waterfront's new bulkhead is
now under construction on a
two-shift basis. workmen hope
for completion by the end of
the year.
That was announced last
might by Phil A. Doyle. execu-
tive director Of the Redevelop-
ment Land Agency.
He also reported q nom
profit corporation has now be-
gun active participation in
guidance of waterfront develop
ment.
with actual work and plan
ming now moving ahead stimuli
taneously, I'm hopeful we can
dispose of some land by the
end OF this year and be ready
to start construction Of some
buildings by early spring" Mr..
Doyle said.
Placing Of sheet-piling for
the 81 $50 900 bulkhead was be-
gun last week. The bulkhead
will create a new channel shore
line and add AZ acres to the
waterfront area. Several hun
dred feet of sheet-piling already
has been put in place.
The non-profit Washington
Channel Waterfront, Inc. said
that its newly chosen executive
director, David s. Orem, as
sumed his duties last week.
Hasten Decisions
Mr.. Orem, 34-year-old son
of a Washington real estate
broker. said the corporation
shortly will contract for two
consultant studies to hasten
decisions enabling an early
start of building construction.
I'VE have completed the draft
of a proposal for a parking and
traffic study" Mr.. Orem said.
In addition, we have ready
a preliminary draft Of a pro-
posal for a marina design study
that will go into economic as"
poets of boat facilities, shore
side facilities for visitors, how
the area should be policed, and
related matters.
In both cases, he said, con-
sultants will be employed by
Washington Channel Water
front. Inc, to do the work.
The recently organized citi-
zens' non-profit group has been
employed by the RIA to help
guide waterfront redevelop-
Iment under a $4,000 contract
for one year.
Nutting Heads Group
Charles B. Nutting, dean of
George Washington University's
National Law Center. is presi-
dent of the special purpose cor
poration set up by the Federal
City Council. It's 14-member
board includes Mrs. James H.
Rowe, jr., chairman Of the Ma
tional Capital Planning Com
mission, and Walter N. To-
briner, president of the Board
of District Commissioners.
Another step planned soon
by the corporation is to retain
an itect-planner in con-
nection with the work of devel-
oping overall waterfront rec
concentrations to RIA.
About Is business firms are
understood to have priority
claims in various categories,
some of them defined by law.
Already about is have told the
advisory corporation they are
interested in re-establishing |
operations in the Channel area.
Concerning his work. Mr.. |
Orem, formerly employed here
by both William Zeckendorf
and the Reynolds Aluminium
Service Corp. in their urban re-
newal enterprises, said.
"The job of the staff will be
to analyge the solutions, pre-
pare a plan of action for the
approval of the board, and help
carry it out. The board will
make the final decisions.
"Our purpose will be to help
get the waterfront built, and
get out of business as soon as
POSSIBLE"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02
The West:
DeGouNe Wins

Candidates supporting Presi-
dent de Gaulle won majority
control Of the French Assembly
last Sunday In the final round
Of legislative elections.
In Charles de Gaulle's eyes, the
French people had a clear choice.
They could support his candi-
dates or they could support the
parties Of former times"
II they voted for the Gaullists,
France would continue on the
road toward progress. prosperity
and grandeur" II they voted for
the others. France invited dis
grace and anarchy.
The dozen French political par
ties objected vigorously to this
analysis. but they could not break
UP the love affair Of Charles de
Gaulle and the French people.
Despite his aloof manner and his
dictatorial tendencies, Charles de
Gaulle will always be revered by
the people as the man who SAL
vaged French dignity during
World War II, and who came out
OF retirement in 1858 TO restore
French unity and end the Al
gerian War.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02
Politics.:
The Theory

The Republican Party dialogue
on how 10 win the South rose
In intensity last week as Gov.
Rockefeller announced his avail
ability as presidential nominee
In 1864 and two G. o. P. candi-
dates were declared winners in
governorship races.
One Of the bright spots for the
Republican Party in the recent
congressional elections was the
continued Roadway II made in the
once solid Democratic) South"
The q. o. p. held its nine House
seats from Dixie and added five
more for a total OF IA, a new high
for modern times. Throughout
the South on November 6, the
vote for Republican congressional
candidates increased. The q. o. p.
in Alabama almost beat Demo-
cratic Senator Lister Hill In what
would have been the biggest upset
o! day which produced some
notable ones.
All this, OF course, caused a good
deal OF lip-smacking among Re-
publican planners as they looked
ahead TO the 1864 races. II also
helped provoke q lively new dia-
logue within the party as TO what
overall strategy II should take TO
insure new gains In the South
without risking votes in the indus
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02

varied elements found in the
Gaullist camp. 1t is possible also
that the center and the left par
ties - excluding the Communists
might join to form an opposi-
ton party like the British Labor
or American Democratic Parties.
Most moderate French obServ-
ers believe the future course will
depend largely on how Mr.. de
Gaulle runs his government. If
he tries to push his programs
through the Assembly in a
naughty manner, going to refer
endum whenever he is faced with
defeat, Mr.. de Gaulle may reduce
the chances for a truly demo-
cratic two-party system.
If. however. he tries to balance
the executive and legislative
branches, far-reaching changes
may take place.
On specific domestic issues, Mr..
de Gaulle can be expected to
press for modernization Of the
French army and for several So
cial and economic reforms that
have been delayed because Of the
Algerian War.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02
Measure of Support

Thus, when Gen de Gaulle
asked the French people TO sup
port him in three elections last
month, they could not refuse him.
In votes OF lasting Importance.
this Is what they did:
. on october 20. the French
people by referendum vote APP
proved President de Gaulle's con-
stitutional amendment. The
amendment calls for election Of
future Presidents by the Ameri-
can method rather than by hm-
tied vote OF 10000 local
"notables."
The referendum stirred up
enormous discussion In France
since 1t bypassed the constitu-
tional channels for amendment
passage by both houses OF the
Assembly and then q referendum.
Mr.. de Gaulle chose 10 bypass
the Assembly because he believed
that the legislators would be
loathe TO invest future Presidents
with the power that accompanies
direct election.
Incensed by Mr.. de Gaulle's
unconstitutional act, the Assem-
bly, voted 10 censure the govern
ment, leading 10 a call for new
elections on November 10 and rs.
. Bolstered by the approval OF
the referendum. Mr.. de Gaulle
continued his fight against the
traditional parties. His own party
known as the Gaullists-bene-
fitted by Mr.. de Gaulles personal
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02

position due to the Der Spiegel
case, this would not be q good
time to enter the Common Mar
ket. Britons have always doubted
the democratic traditions on the
continent, and many anti-Market
voices are heard warning that
Britain's democracy might be
snuffed out If 1t Joined the Six.
This, however, is an extreme
pessimistic view. The British gov
eminent is still committed to the
Market, and Prime Minister Mac
milan plans a visit to Paris in
two weeks and then a trip to meet
President Kennedy on December
10. Undoubtedly. efforts will be
made during these talks to en-
phasize the unity Of the West. in
the face of the general Commu-
mist threat.
Mr.. de Gaulle, however, now en-
trenched firmly in power, is I'M
likely to compromise his views on
the need for an Independent
French nuclear force or on the
futility Of negotiating with the
Russians on anything, whether 1t
be Berlin or disarmament.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02

Continued From Page B-1
fore the workers would be free to
resume their strike.
Minds can be changed In less
than 80 days, but both sides, in
the wake Of Mr.. Kennedy's move,
have firmly declared that they
are not going to give in. Thus.
last weeks 40-hour strike could
be only a tiny sample Of what's
to come later this winter. The
threat TO vital national security
programs has been postponed; 1t
has not been cancelled.
On q second labor front last
week, the Nations railroads
moved another step forward In
their campaign-now In It's fourth
year-to eliminate what they call
"featherbedding" or unnecessary
work and unnecessary Jobs.
The United States Court OF APP
peals In Chicago upheld on
Wednesday a lower courts ruling
that the roads had the right to
make broad changes in working
rules designed TO liquidate the
Jobs Of 10000 firemen on diesel
locomotives In yard and freight
service and $4,000 other on-train
and yard Jobs.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02

trial Northeast and other sections
Of the country.
Senator Javits Of New York
helped get the debate rolling in
high gear about two weeks ago
when he warned his party not to
try to "outsegregate the segrega-
tionists" lest the @. o. p. is hurt
nationally. He believes some
Southern Republicans are doing
this.
But Republican National Chair
man William E. Miller implied
that II Senator Javits was perhaps
suggesting that the COP. slow
up its drive in the South until 1t
could find integrationist candi-
dates he Is dreaming.
Mr.. Miller asked. not illogically,
why the Republican Party could
not have conservatives in the
South and moderates or liberals
in other areas. He pointed out that
the Democrats have been split this
way for generations and have been
doing quite well-particularly In
seats in Congress.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02
THE NATIONAL SCENE

Kentucky, for example, certainly
did not campaign as q segrega-
zionist. He defeated the more lib
eral Wilson Wyatt, a Democrat,
rather easily.
AS thoughts Of some COP. lead
ers riveted on issues, others began
talking about presidential candi-
dates. One Of them, Gov. Nelson
A. Rockefeller of New York. frank
ly admitted that he was in the race
for the nomination.
The Governor, in his first news
conference since being reelected,
said he believed the right Repub-
lican could beat Mr.. Kennedy. He
announced that he would begin
speaking out on national issues
and would accept out-of-State
speaking invitations - something
he eschewed during his reelection
campaign leaving little doubt
that he is going about TO win the
presidential nomination.
Elsewhere on the political scene,
the Republicans had good news In
three States. In two Of them, Min
nesota and Rhode Island, the
cheer could be temporary, de-
pending upon the vagaries of re-
counts Of votes. Gov. Elmer L.
Andersen was officially declared
the winner over Democrat Karl
Rolvaag by 142 votes in Minneso-
Ia and John II. Chaffee was cited
as the victor over incumbent Gov
ernor John A. Motto, jr., In Rhode
Island, by 398 votes.
Should both the Andersen and
Chaffee victories hold up the State
houses would be divided this way:
Democrats 33. Republicans. IT.
The Republicans narrowed the
Democratic edge In the Senate
last week when Gov. Edwin L.
Mechem Of New Mexico resigned
and his successor appointed him
10 fill out the two years Of the
unexpired term OF the late Sena-
tor Dennis Chavez. The Demo-
cratic margin In the Senate is
now 81 TO 80.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02
Middle of Road

Some other Republicans find 1t
difficult TO follow the suggestion
that II a COP. segregationiSt runs
against a Democratic segregation
list In the South 1t would be the
Republican Party which would suf-
fer In other sections OF the coun-
try. The last election, they con-
tend, demonstrated again that
where you present attractive mid
dle-of-the-road candidates you can
win.
The recent political wars showed
something else: That Republican
candidates In the South and Bor-
der States did not build their cam
paigns around the race question.
More stress was put on the eco
nomic issues. where the Republic
cans emphasized their conversa-
tlsm. Senator ThruSton Morton OF
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02
No More Furnaces

The roads have contended for
years that the firemen are no
longer needed because diesels have
replaced steam engines and there
are. therefore. no more coal fur
naces TO stoke. The unions insist
that the firemen are needed for
safety and for efficient operations.
Under the Appeals Court deci-
sion, the roads are free 10 put
the rules changes into effect In
Is days. II no further appeal is
made by the five operating BROTH
crhoods, But such an appeal
seems certain. First, a rehearinR
probably will be requested; II that
fails. the brotherhoods probably
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02

their preference but will have to
surmount the enlarged European
Economic Community's external
tariff in keen competition with
other producers.
The saying around Hong Kong
today is simply this. I'VE must
export or die"
A Phenomenal DECIDE
Behind that saying Is Hong
Kong's phenomenal decade Of
growth and how it came to grips
with its key problem-the prob
lem of people.
Until Hong Kong fell to the
japanese on Christmas Day, 1941,
the British Crown Colony had
been unremarkable for anything
beyond its harbor and the trade
which centered around it. It's in
dustry, except for shipbuildng
and repairing, was negligible. Its
life was leisurely. Its buildings,
rarely exceeding four stories, were
Enthusiastically Oriental Colo
NAL" in style. During the Japa-
nese occupation. the population
fell to Just over half a million.
At wars end, the returning peo-
pie found the buildings bombed,
the fine houses on the Peak roof
less and looted, the wharves and
docks smashed and the harbor
strewn with sunken ships.
The one postwar shortage that
Hong Kong didn't have was peo-
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-02

will take the case to the Supreme
Court.
No strike is likely while the
case is in litigation. But one
brotherhood chief warned that
the unions would have mo alter
native" but to strike II the work
changes finally we're implement
cd