davidaulloa/AmericanStories huggingface dataset:
Evening star., 1962-01-05
By WILLIAM DUKE
Star Staff Writer

Withdrawals from Freestate
Savings and Loan Association
came to a halt today as the
firms new officers searched for
answers to State charges that
the company was operating at
a loss and should be placed in
receivership.
The Withdrawals were frozen
by order Of the Prince Georges
County Circuit Court, which
also gave the association five
days to answer charges made
IN a petition filed yesterday by
the State attorney general.
231 DepOsiters
The order was signed by John
B. Gray. jr.. chief Judge of the
Circuit Court. after a meeting
with State officials who re-
quested immediate appointment
OF q receiver.
FreeState maintains offices at
23l0 1verson street. Hillcrest
Heights and in Baltimore, and
had $273,019 deposited by 231
shareholders as of November
80, the petition said.
In the States petition, At
torney General Thomas B.
,Finan and Albert w. Ward,
director of the Department of
Assessments and Taxation, al
legged that Freestate was not
run as a savings and loan firm
but was operating solely for
the advantage Of the beneficial
owner of the guarantee stock. ="
The petition said that the
guarantee stock Of the firm is
owned by District Investors,
Evening star., 1962-01-05
Court HoIts Withdrawals
At Freestote Savings, Loan

Inc, and said this firm was
controlled by Baltimore attor-
ney Harold G. Applegarth. Mr..
Applegarth was one of the at
torneys associated with Mutual
Security Savings and Loan AS
sociation when that firm un-
successfully tried to avoid re-
ceiverShip action by the attor-
ney general in November.
Judge Gray told reporters he
had granted Freestate time to
answer the charges because the
firm had changed officers re-
Gently and that they had ap-
parently not been notified of
yesterdays meeting in time to
be represented.
The judges order restrainS
the Freestate management
from disposing Of any assets
or removing any books or fl
nancial statements pending a
hearing on the receivership
petition next Friday. The rul-
ing also forbids Withdrawals
from the association by share
holders.
Joseph M. O'Connell, a Wash
ington public relations man,
said later that he was the new
president Of Freestate and that
he was certain we can prove
this firm is solvent" at the
hearing.
He said that neither he nor
the attorney for the associa-
ton had been informed of the
meeting yesterday until late in
the afternoon.
Mr.. O'Connell, who took over
as president of Freestate last
Thursday, had said earlier that
he and a group of associates
Evening star., 1962-01-05

Inside the building, tenants
interviewed told of their diff
culties in getting repairs made
during the past year when the
property was owned by Wayne
and Mutual.
One tenant, Mrs. Cora Mil
Ter, pointed to a hole in the
plaster ceiling of her bathroom
about the size of a garbage
can cover.
Water has leaked through
the ceiling every time it rained
since last November, she said.
Two weeks or so before Christ
mas the plaster came down
while she was in the bath
room, she said.
Did she ever report it? "How
many times" she said. I'm
sick and tired of reporting.
You don't get any reaction. /"
Meanwhile, the search for
tangible assets of Mutual Sc
curity goes on. Many Of Mu-
tual's mortgages are on low
standard property such as the
building sold yesterday, ac-
cording to Attorney Jerome E.
Korpeck, counsel for the re-
ceiver, Paul Coughlan.
Mr.. Coughlan, the receiver,
says the loan associations
shareholders will have to wait
for further developments. He
said he could not predict what
the return would be on the SO
million invested by share
holders.
Mr.. Coughlan has only found
$4,000 in cash assets and is
still attempting to evaluate the
true value of SAT million worth
of mortgage receivables.
Evening star., 1962-01-05
BY DAN GOTTLIEB
Star staff Writer

's Approximately 20 additional
pieces Of property on which
Mutual Security Savings &
Loan Association holds second
or third mortgages will be fore
closed Immediately. the court
appointed receiver for the as
sociation said today.
: About 20 properties already
foreclosed have produced little
or no funds for Mutual share
holders, however, including a
$480,000 asset" of the firm
which was wiped out by a
mortgage foreclosure yesterday,
Receiver Paul M. Coughlan said.
, The foreclosure was on a
four-story apartment building
with a leaky roof, falling plas-
ter, signs Of insect contamina-
ton and cracked tile-floored
Railways. It was auctioned
off on the sidewalk yesterday
With the hopes Of Mutual Sc
eurity shareholders riding on
The selling price.
) The building at 1440 w
street NV. is down on the
books of the firm as a $3.50, 900
asset"
: 1t went for 900, which
means that the trustee in re-
eeivership for the firm will not
be able to realize a penny for
the benefit of the sharehold-
ers who invested their money
IN Mutual.
Reason for Sale
= The building had to be put
on auction because Of foreclos-
ure by the original owner, who
Evening star., 1962-01-05
TODAY'S WEATHER REPORT

: District and vicinity - To-
night, cloudy, occasional driz-
Ele and light rain. Low near 80.
Tomorrow, rainy and contin-
ied chilly.
I. eMaryland-Cloudy and cold
tonight and tomorrow with
some drizzle or light rain, which
may turn to snow in mountains
late tomorrow. Low tonight in
low 30s. Tomorrow, high Of 40
IN south and sos elsewhere.
y Virginia--Mostly cloudy to-
night and tomorrow with some
drizzle or rain. Low in 30s to-
hight. Tomorrow, high of 38 to
43 in south and in 30s in north.
Lower Potomac and Chesa-
peake Bay Winds mostly
northeast 10 to occasionally
20 knots tonight and probably
tomorrow. Cloudy with some
drizzle or light rain at times.
Visibility 5 miles to less than
j mile in rain.
= FIvE-DAY FORECAST
q District and Vicinity
January 6-1O
{ Temperatures will average 2
to S degrees below normal high
of A and low Of 20. Colder
tomorrow and continued cold
through first of week. Precipi-
Evening star., 1962-01-05
Mutual Security's Receiver Plans
About 20 Additional Foreclosures

held a $16S,000 first mortgage
on the property after it was
purchased by Wayne Invest
ment Corp, a wholly owned
subsidiary Of Mutual.
Wayne had not met the
schedule of payments to the
original owner, and in addi-
ton had taken out what was
in effect a second mortgage
from its parent corporation for
$480,000 on the property, &C
cording to the records on file
with the trustee. The money
never actually was transferred
to Wayne, however, according
to the records.
The auction yesterday, one of
many being conducted by the
receiver, was held in front of
the building with less than a
half dozen parties participating
in the bidding. This was mar
rowed to two shortly after the
bidding passed the 100000
mark. The first bid was $50, 900.
A few curious tenants came
outside to watch the proceed
ings. 1t was over in Is minutes,
with the high bid coming from
Attorney Seymour Friedman on
behalf of the original owner,
Mrs. Rose B. Anderson of 1900
Farragut street NV.
Rain Through Roof
Although the terms Of the
sale call for cash, the fact that
Wayne Investment owed Mrs.
Anderson approximately the
same amount on the mortgage
means that the receiver for
Mutual will have to turn over
all proceeds of the sale to the
purchaser.
Evening star., 1962-01-05

For high and low tides at the fol-
lowing points subtract times indicated
Annapolis, Sh hours; Bloody Point
Light, 4h hours: Colonial Beach, 6
hours: Deale, 4h hours; SolomonS
Island. 6h hours; Point Lookout,
IN hours.
Evening star., 1962-01-05

Snow expected tonight in New England and most the Mississippi
Valley and Lakes region with and freezing in the
States Ohio and Valleys will
and Central Mississippi Valley South
continue cold in the Northeast while
Rockies-AP WrephOtO Map.
Evening star., 1962-01-05
The Sun and the Moon

The sun Bnd the Moon
Rises Sets
Sun, today 7:27am. 500 pm.
Sun, tomorrow 7:27 pm. Sol pm.
Moon. today 6:19 am. 4:26 pm.
Automobile lights must be turned
on one-half hour after sunset.
Evening star., 1962-01-05
Rain Through Roof

tation will average more than
Y inch, occurring as rain to-
morrow and rain or snow in
first Of week.
Road Conditions-AAA
West-D. C. to Pennsylvania turn
pike, clear: Pennsylvania turnpike,
clear; Ohio turnpike. wet and foggy
in extreme west, otherwise clear; q. s.
40 west to Ohio. clear: U. s. so west
70 Ohio. clear; U. s. 80 through West
sout6-shiriey highway and U. s, l
to Richmond. clear: Richmond south,
clear; D. C. to Charlottesville. clear.
North and East-D. c. to Harrisburg,
clear; D, c. to Delaware Memorial
Bridge, clear; New jersey turnpike to
New York City, clear; New England !:
South is clear, extreme north ranges
from slippery in spots to snow on
main roads; secondary roads are wet.
slippery in spots or snow-covered.
River Report
Potomac River clear at Harpers
Ferry and clear ct Great Falls. Shenan-
doah clear at Harpers Ferry.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11
ACCOpposes
Outlay for
Jr. College

A double-barrelled attack
on School Superintendent c.
T ylor Whittier's $16.5
building program for next
year was launched this week
by the county's Allied Civic
Group with strong recon-
mendations to the School
Board that:
Proposed expenditures of
over 81 million for additional
facilities for and expansion of
the Montgomery Junior College
be deleted until a State study
of the role of junior colleges In
higher education has been com
pleted.
"A general program Of air
conditioning schools in the
county be disapproved and air
conditioning be installed only
in special cases where absolute
ly necessary.
The proposed expenditures
for the Montgomery Junior Col
lege represent more than one
fourth of the total construction
budget proposed for the 1862.
SO school year, the ACC pointed
out.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11

upper level will be entered by
ramp from Vinson st.
Plans for a dedication of the
building, at which Governor
Tawes has been invited to
speak, and for an open house
for the public, will be an
nounced shortly.
At its regular meeting this
week, Rockville's Mayor and
Council announced all future
meetings will be held in the
Council Chamber of the new
City Hall.
In other actions, the Councils:
Appointed Leslie Cole to a
five-year term on the Rockville
Housing Authority. Cole has
been chairman of the agency.
Named Earl Williams, Mont
gomery County Traffic Engi-
neer, as chairman of the city's
Traffic, Transportation and
Safety Committee.
Voted a $2,400 contribution to
the Rockville Volunteer Fire
Department.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11
Robert c. Heeney, Republican,
Files for States Attorney

Robert c. Heeney, Montgom-
cry County attorney, filed to-
day for the Republican nomin-
alton for States Attorney. He
must be nominated by his Party
in the May primary.
Mr.. Heeney was the Repub-
Iican candidate for States At
torney in the 1858 election. For
the past II years he has been
engaged primarily in the trial
of criminal and negligence
cases before the Maryland and
United States District Courts.
In making his announcement
Heeney commented on States
Attorney Leonard T. Kardy's
claim of January 2, when
in announcing for reelection
the incumbent took credit for
keeping the County free Of
organized crime" and said
further he would run on his
record" Heeney stated that he
had been persuaded to run
again because Of the "abomin-
able record" made by Hardy.
He also stated that the incum.
bent was very wrong and UNI
fair in taking credit for keep
ing organized crime out of the
County" I'VE never have had
organized crime here in this
County" said Mr.. Heeney and
"the reason is not because Of
Hardy but because of one Of
the finest police departments in
the United States and because
of the superior quality Of the
members of the Judiciary"
'"The only thing Mr.. Hardy can
really take personal credit for"
said Mr.. Heeney, lis that in the
last three years Hardy has sue.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11
Council Says:
More Electrical Amperes
Needed For Our Houses

vidual circuit of not less than
No. 10 wire.
The Council asked County
Attorney Alfred H. Carter to
bring in resolution covering
these changes, as well as the
new provision for 80 amps of
house power, and to make rec
concentrations for notifying
dealers and purchasers of new
electrical equipment of the
changes.
Enforcement procedures are
also to be suggested by Carter.
In another action at it's meet.
ing this week, the Council dele
gated to County Health Officer
William Peoples the authority
to consent to the commitment
of the chronically i'll, insane or
feebleminded to state institu-
tons. The Council until now
has handled this formslity
itself.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11
Jewish Council Seeks End
To Public School Religion

The Montgomery County
School Board and the heads
of the six other public
school systems in the metro
politan area this week were
asked to put an end to re-
ligious observances in the
schools.
Seeking the prohibition is the
Jewish Community Council of
Greater Washington, a volun-
tary association of 1T organi-
cations, synagogues and insti-
buttons in this area.
In an Identical letter to the
presidents of the seven boards
of education, the Council asks
them to establish and carry out
"a policy that clearly prohibits
the conduct of religious holi-
day observances and other re-
ligious practices under public
school auspices, whether sec
tartan or non-sectarian, whether
on or off school premises, and
whether optional or compul-
sorry"
Religious observances an d
practices in the public schools,
the Council said, 'have and
will continue to have three adj
verse effects" naming them as:
"(1) Serious damage to the
educational process" which it
said is brought about by sub.
jecting children ito divisive in.
fluences, personal embarrass-
ment and psychological con-
fusion"
children of majority re.
ligions are conditioned by such
school observances to perceive
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11

Council this week as they an
nounced they will hold a public
hearing soon on a proposal to
require wiring of all new homes
built in the county to handle at
least $50 amperes.
The present minimum is 100
amperes, which, the Council
was told, modern appliances
have made as outmoded as so
amps were after home air-con-
dtioners were introduced.
Expressing their concern over
the number of recent home
fires attributed to faulty wiring,
Council members also said they
will seek tighter regulations on
wiring of window.type air-condi-
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11

tuition scholarships will be Of
fered for the first time.
Established by last years
General Assembly, they are
similar to the teacher education
grants, with their number based
on the legal residence of the
candidate and the number of
representatives in the Legisla-
ture.
The grants are worth a maxi
mum of $500 a year for four
years and may be used at any
approved Maryland institution
of higher learning, including
junior colleges.
They will be administered by
the Maryland State Scholarship
Board.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11

ceeded in spending more Of the
taxpayers money than any
other States Attorney in the
history of Montgomery Coun-
ty."
The candidate, who in 1854
was an Assistant States Attor-
ney for Montgomery County, is
a member of the Bars of the
Supreme Court of the United
States, Circuit Court of Appeals
for the District of Columbia,
Court of Appeals Of Maryland,
Court of Military Appeals, The
United States District Courts
for the Districts of Maryland
and the District OF Columbia.
He holds a BIS. degree from
the School Of Foreign Service
at Georgetown University and
o LIB degree from the Law
School at the same university.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11

I'll ~ w ooAAiio VII St.
Because the new building will
be closed on moving day, to ia
cilitate setting up offices, per-
sons with business to conduct
with city officials should han
die it by phone, through GA. A.
5000.
The move will bring all city
departments under one roof for
the first time in recent years.
The new building is consider
ably larger than the existing
City Hall and will provide for
maximum efficiency and con-
venience, city officials say.
The Departments of Public
Works, Planning and Urban Re-
newal, and Licenses and Inspec-
ton will have their offices on
the lower level, as will the Po-
lice Department. The admins
trative offices and the Recrea-
ton Department will occupy
the upper level.
The lower level will be en-
tered from Perry ST., while the
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11
College Scholarship
Exams Set February 3

Examinations for collie G e
scholarships awarded by the
State will be held for county
high school seniors at 10 am.
February 3 at Richard Mont
gomery High School.
Seniors interested in taking
the exams must register at their
individual high schools before
Wednesday, January IL.
Scholarships offered are those
under the Senatorial scholarship
program, the Teacher Educa-
ton program, and a new pro-
gram of awards under the new
ly authorized State Tuition
grants.
Seven of the general state
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11
Area Citizens
Oppose River
Bend Dam

The Montgomery County
Citizens Association of Po-
tomac is opposed to locating
the proposed Potomac River
Basin dam at River Bend.
In a letter to the County
Council, the association made
an appeal to resist the con-
struction of the proposed high
dam and the destruction of the
cherished character of Mont
gomery County,"
If the Corps of Engineers is
permitted to carry out it's pro-
posal to flood land up to a 226-
foot elevation and confiscate all
buildings and structures on
land below the 247-foot eleva-
ton, "a large percentage of
residents will lose very expen-
sive homes and property, par
ticularly in the Watts Branch
watershed region" the group
told the Council.
Recreational activities which
the Corps of Engineers pro-
poses to surround the reservoir
with the letter said, will bring
on boat rental stands, tackle
and bait concessions, motels,
camps, hotels and hostels-
which twill mean the entire
area will be converted to a type
of commercial activity :. that
either brings in little revenue
to the county or is exempt
from taxation entirely"
The association also pointed
out that many of the people
responsible for the high per
capita income level of the coun-
ty were attracted here "spe-
officially by the present unique
country living" in the area
which would be inundated by
the dam.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11
Warming Sirens
To Be Tested

Warning sirens in the county
will be sounded at about 11:55
am. Saturday in a regularly
scheduled quarterly test of the
civil defense operational status.
All sirens in the District of
Columbia and rounding
counties will be activated stimuli
taneously by the Office of Civil
Defense from one central point.
Bell and light warning signals
installed in many public build
ings and agencies of govern.
ment will also be tested.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11

He Is a member of the Grimm
al Law Section of the Ameri-
can Bar Association as well as
a member of the Maryland
State and Montgomery County
Bar Associations. The National
Association of Defense Lawyers
in Criminal Causes and The
National Association of Com
pensation and Claimants Attor-
neys.
Mr.. Heeney is a member and
past president of the Civilian
Club of Rockville, baseball
coach In the Rockville City
League and basketball coach
in the County C.Y.O. League.
He is also a member of the
Rockville American Legion and
Veterans of Foreign Wars, hav-
ing served overseas three years
in the Middle East with u. S.
Army Signal Corps during
World War II. He is also a
member of the Rockville Cham.
Der Of Commerce, the EllSs
Club, Knights Of Columbus and
a communicate Of st. Peters
Catholic Church at Olney. In
addition, he is an active mem
Der Of the Laytonsville Volun-
teer Fire Department and a
delegate TO the Montgomery
County Association Of Volun-
teer Firemen.
The candidate, along with his
wife, Elizabeth, his two sons.
Thomas and Robert c., jr., and
his three daughters Patricia,
Elizabeth and Margaret live on
a small farm In Laytonsville,
Md Mrs. Heeney is a teacher
at Sherwood High School in
Sandy Spring.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-01-11

40 of the county's leading Dem.
ocrats elected officers OF a new
NEUTRALITY-SUSPICIOUS. Club of
Montgomery County, support
ing:
George p. Mahoney of Balti-
more, candidate for the nomina-
ton as governor; Del. Blair Lee
III of Silver Spring, who seeks
his party's nomination as U. S.
Senator, and Lee Barrick of
Frederick, a candidate for the
nomination as Attorney Gen.
eral.
Formation of the powerful
group backing the entire
Mahoney-Lee-Barrick ticket Is
expected to crystalline much of
the potential support for
Mahoney among Blair Lees
hackers, thus offering the CUB
ernatorial candidate organized
support in a Montgomery Coun-
ty Democratic primary for the
first time in his political career.
Activities of the new organi-
cation will be guided by an ex-
ecutive committee representing
all areas of the county and
composed of both progressive
and moderate Democrats who
have been leaders In attempts
to achieve party unity In the
tangled web of Montgomery
County Democratic politics.
"Our organization" declared
newly-elected chairman Wheel
er, is not a closed corporation.
Ours is an organization of pro-
gressive Democrats and we will
welcome all Democrats who
support the Mahoney-Lee-Bar
rick ticket in the interest OF
good government in Annapolis
and effective representation for
Maryland in the United States
Senate"
1T is our intention" Wheel
er added, Ito field an entire
broad-based local ticket Of pro-
y
gressive candidates who will be
committed to these goals"
Officers of the new club, in
addition to chairman Wheeler.
are: vice chairman - John P.
Moore, Chevy Chase, president
of the Mems Democratic Club
OF Montgomery County; WI
lard A. Morris, Silver Spring,
president of the Piney Branch
Democratic Club, and Frank
Bliss, jr., Rockville, former
president of the Young Demo
cratic Club of Montgomery;
treasurer Frank L. Hewitt,
jr., Chairman of the Board and
President of the National Bank
of Maryland; secretary - Mrs.
James Lynch, former president
of the Women's Democratic
Clubs of Montgomery County
and the first volunteer in the
county for the Maryland pri-
mary campaign Of President
Kennedy last year.