Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1962-10-18
attorneys Study Shows
4OO-Acre Olney Tract Only Security
For S&L Notes Valued at $2l Million

Over $21 million in notes Sc
cured only by 400-acres of unim-
proved land in Olney are among
the assets" of five savings and
loan association now in receiver
ship.
Mote assets" of the savings
and loan firms are in the hands
of the receivers but how much
money changed hands and who
owns what, presumably will
come to light in whatever legal
action the State of Maryland
will or will not take in connec-
ton with the firms.
The 400 acres, now known as
Cherry Valley, include the 300
acre, former Barnsley farm sold
to Robert F. Suchman and Alex
ander J. Pikiel on April 20, 1859
for 100000; and a 100-acre
tract sold to Herbert ]. Hoover
and A. ]. Pikiel by Ellis P.
Block, May "a, 1861.
At the time of the first pur-
chase, it was announced the
land would become a develop
ment of homes in the SO, 600 to
SGT 800 class, and that a "coun-
try club" type of atmosphere
was contemplated. At the pres
ent time, 10 houses on part of
the tract are in various stages
of completion.
Robert E. Billiard, Rockville
attorney, this week disclosed to
the Sentinel details of the ma
neuverings of five savings and
loan companies who became
part of the Olney deal and point
ed out how, through an ex-
change of notes, they were en-
abled to build up neaT-midas
assets and paper profits, among
other things.
Billiard said, after purchase
of the Barnsley farm, it was
divided into lots and thirteen
subdivision plats were made.
Only one of these, however, was
approved by the Park and Plan
ming Commission and later
recorded. The recorded plat con-
Germs only % lots. In the con-
veyancing and recommending
that went on between the saw
ings and loan firms, however,
Billiard said County records
show over 300 lots were con-
veyed at Olney.
Nine blanket trusts were plac-
ed on the 300-acre tract amount
ing to S1,215,000. Later, addi-
tional and individual $4,000
construction loans were placed
on each of the so-called lots,
even though they did not appear
on most of the so-called lots,
ton notes totaled in excess of
$1O,350,0OO.
In connection with the 100
acre tract, Billiard said n trusts
were placed totaling $685.
740. Hoover and Pikiel conveyed
the land in five parcels to five
savings and loan associations.
The five associations, Billiard
stated, are Maryland District
Savings and Loan; LIST General
Savings and Loan; LIST Financial
Savings and Loan; Commercial
Savings and Loan; and Mary
land Thrift Savings and Loan.
Each of the savings and loan
firms then decided its parcel to
a building corporation, Billiard
said, which further subdivided
its parcel and executed a num-
Der of deeds of trust, one on
each parcel No part of the 100
acre tract was subdivided by
any plat of record, according to
Billiard.
Billiard, a COP candidate for
the House of Delegates, told
the Sentinel his exhaustive
study of county records has dis.
closed that the notes exchanged
by the firms were secured by
over $50 separate deeds of trust.
He said he found that zone
same parcel of land often was
mortgaged, released and again
mortgaged under various de.
scriptions. There were many de
fective instruments among the
hundreds examined" Billiard
stated.
Mechanics of conveyancing
we're most extravaganza" Bull