Evening star., 1962-05-27

creaseS. the District aSSocia-
tons had a net decrease of
s239, 900 in savings, the first
time in many years that more
savings moved out than into
the associations.
Results of the first month
after higher dividend announce
ments demonstrated that you
cannot attract new savings
money by higher dividend rates
alone" Mr.. Kolb declared.
He expressed doubt that the
Maryland savings and loan
scandal had anything to do
with the small District decline,
because it was going on for
many preceding months when
associations were gaining saw
ings. However. he said heavy
advertising of higher rates by
the District associations may
have placed them in a position
similar to the Maryland as
sociationS, which had adver-
tiSed exorbitant rates.
Urges New Emphasis
He proposed that associa-
tons turn their attention from
rate advertising to emphasize
again the primary purpose of
savings; also to emphasize ad-
vantageS offered by savings
and loans such a full dividend
to all savings members at the
next dividend rate and favor
able computation of dividends.
Mr.. Kolb agreed with pre-
dictions in a panel discussion
Friday that recent rate in
creaSes from 4 to Az per cent
will have to be rescinded by
many associations to meet ris-
ing costs, particularly with
heavier Federal taxes and ex-
pensive withholding of divi-
dends in prospect.
Through much of the divi-
dend discussions here on Friday
and today eyes were turned
frequently to Perpetual Build
ing Association, the Washing
ton areas largest saving and
loan, which refused to join the
parade to 4A per cent and now
is reported faring just as well
or better than those who raised
their rates.
81 Million Saved
Perpetual celebrated its 80th
birthday at a small dinner
party here Friday night. Presi-
dent Edward c. Baltz told Of
ficers and directors of the
association and q number of
tuests that Perpetual saved
Ground 81 million a year by not
going to 4A per cent. and was
able to put this money into re-
serves to safeguard its MEM
bers.
In common with many other
District associations, Perpetual
had a small decrease in savings
In April, but an upsurge in May
already has wiped out this
small setback, and the associa-
tons savings have moved
higher, he said.
Perpetual is proud that its
savings members recognized the
wisdom Of keeping strong re-
serves instead of going off on a
race of unwise competitive divi-
dends, he said.
He noted that Guardian Fed
eral Savings and Loan Associa-
ton was the only other District
association to stand pat.
Stephen G.. Slipher. vice
president and legislative direc-
tor of the United States Saw
ings and Loan League, and
John O'Brien, assistant general
manager of the Federal Savings
&Loan Insurance Corp, praised
Mr.. Baltz and Perpetual for
leadership in the Nations saw
ngs and loan business over a
long period of years. Mr..
Slipher pointed out that Per-
petual is the Nations largest
mutual savings and loan asso-
citation with assets of $435 mil
lion.
In his annual message at the
closing session, President Kolh
reported that the past year was
full of problems for the Wash
Nngton savings and loans.
Scandal No. Problem
The Maryland savings and
loan scandal was the number
one problem, although league
members saw it coming f.
afar, and tried to warn the
public without success, said Mr.
Kolb, who is president of Orien.
tai Building Association.
He recalled an address BY
Julius Maedel, president o.