1985. Fidelity Building and Loan Association (Washington, DC)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: July 18, 1936
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: b9956106

Response Measures

None

Description

The association was ordered closed and a receiver appointed by the Comptroller/Currency controller on July 18, 1936 (government action). No clear contemporaneous report of a depositor 'run' is given in the articles; the sequence is closure/receivership followed by reorganization and sale of assets to First Federal Savings & Loan and an eventual resumption of service under the new institution (sale approved 1938-01-25). Bank is a building & loan (state-chartered savings & loan type).

Events (5)

1. July 18, 1936 Other

Newspaper Excerpt: Warrant given ... Fred B. Rhodes, former president of the Fidelity Building and Loan Association, was arrested July 18, at the same time the building and loan association was placed in the hands of a Treasury receiver.
Source: newspapers

2. July 18, 1936 Receivership

Newspaper Excerpt: M. L. Barnett, jr., ... appointed receiver ... has taken possession of the books and assets of the association; receiver now is receiving proofs of claims from depositors.
Source: newspapers

3. July 18, 1936 Suspension

Cause: Government Action
Cause Details: The Comptroller/Currency controller declared the association insolvent and ordered it closed and placed in the hands of a Treasury receiver; examination revealed losses and irregularities.
Newspaper Excerpt: The currency controller ... closed today Fidelity Building and Loan Association ... appointed a receiver ... receiver has taken the books and assets and records of the association.
Source: newspapers

4. May 18, 1937 Other

Newspaper Excerpt: First Federal Savings and Loan Association of Washington formally established ... plans moved forward toward its eventual purchase of all assets of the closed Fidelity Building and Loan Association from the receiver.
Source: newspapers

5. January 25, 1938 Reopening

Newspaper Excerpt: Justice Daniel W. O'Donoghue ... signed an order approving sale of the institution assets to the First Federal Savings and Loan Association; Comptroller announced machinery will be set in motion ... to accommodate the 18,000 depositor-shareholders.
Source: newspapers

Newspaper Articles (13)

1. July 18, 1936 Evening Star Washington, DC

Article from Evening Star, July 18, 1936

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CO. LOAN FIDELITY OSED; ORDERED EX -HEAD ARRESTED Is B. Fred Rhodes Charged of With Larceny $13,000 of Deposits. IS SERVED WARRANT PROBE AFTER FEDERAL to of Use Cover Funds Overdraft in Laid Account Personal to Attorney. BULLETIN. of the The currency controller the closed today Fidelity Building and appointed Association company con& a receiver Loan Prentiss. for the jr., acting in a stateWilliam the currency, appointed M. L. troller of he had and that receiver and of the ment, Barnett. said jr., as has receiver, taken the books possession and the assets association. was action the records of the of the controller of "The while an examination building and by loan excondition taken of the being made The examassociation from was his officeren apparent exceeded irreau aminers ination revealed losses which accounts the of larities and and reservweight and in renthe the profits association the controller insolvent. dered of the for judgment the association of association period "All offices the public in orier be closed least to 10 days and his staff necesgive of at the time receiver to the Acient records of office the of the Thirteenth associasary "The main at 618x branches, tion is It operates street. 3008 Capitol street. K street. located at street, located 3072 M 735 street North northeast. Four- and Eighth and teenth 1427 H streets southeast followed 431 11th st. action day of The arrest Treasury's earlier an in attorney the and in for- the Fred the B. Rhodes, Press Building. on a charge of funds. mer National of the of $13,000 of the on served company's The warrant was and he was head- imRhodes at taken 1 p.m. Angerprinted police and mediately booked. bond of $5,000. then of which quarters. released Association on has about are Fidelity most to the The accounts. not belong & 16,000 does Building small. It of Columbia includes most asand Loan District League. building which and loan are not of the city's its accounts an in incorporated March. dent in 1933. sociations. insured. 1929. It Rhodes was became presiA Rhodes. warrant charging attorney Fred and Building B. former & S13.president well-known of the with Fidelity larceny was issued of at 000 12:15 Loan from Associatassociation p.m. the today by Police Court an Judge inJohn Rhodes P. McMahon. arrest Treasury will culminate and office Justice of vestigation by examiners and and the which beDepartment States attorney. last February of the gan the United some resigned time before as president financial when he institution of the city's The Fidelity and is one loan associations. at 610 building office located larger having a main and six branches. Thirteenth street Detective. reWarrant Given at the warrant was United issued States was Atquest A. the the The of Assistaschweinhaut hands and of Sergt. Detective torney immediately Henry placed P. in E. Ambrose for transactions service. said other one described of the warrant Schwein besides Rhodes are under the investigation. charged the through in with Rhodes obtaining was last a specifically November $13,000 with loan 8 credit- from overing "straw Fidelity the Fidelity money party. to to and his meet own an was account for the loan reportedly Guilford at construction draft. The Fairfax on land County, in met only s300 the Va. When $398 subdivision, overdraft had $13,000. been Schweinhaut stated the was left his of investigation the showed. Code. unLarceny Under charged former banker the was District code The a section of misappropriation by larceny. der of which money states of an a that building officer of and the loan associa- ashas tion sociation shall constitute the Fidelity some Schweinhaut four and a said half million dollars continue of Schweinhaut deposits. Department said both of the Justice Treasury will and the their investigations

2. July 20, 1936 The Washington Times Washington, DC

Article from The Washington Times, July 20, 1936

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RHODES FACES COURT AUG. 3 Fred B. Rhodes, Washington attorney and former president of the Fidelity Building and Loan Association, will be arraigned in Police Court August 3 on charges of larceny of $13,000, it was announced today. The arraignment will follow by only a few days the expected filing of claims against the institution over which M. L. Barnett, bank examiner for the fifth Federal Reserve district has been appointed receiver. The charges against Rhodes preceded by only a few hours the declaration Saturday by the Comptroller General that the association was insolvent. Rhodes is charged specifically (Continued on Page 2, Col. 4)

3. August 24, 1936 The Washington Times Washington, DC

Article from The Washington Times, August 24, 1936

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# AUDIT AWAITED # BY FIDELITY # RECEIVERS Reorganization Plans Depend on Findings; Claims Received (Picture on Page 19) Indications that it will be some time before a reorganization program can be launched for the recently closed Fidelity Building and Loan Association came today from officials connected with the office of the Comptroller of the Currency. Although the officials would would not estimate how long it will be before the checking of the books can be completed, one pointed out that a thorough audit is being made and that before the status of the bank is determined it will be necessary to go through the lists of liabilities and assets and determine where discrepancies may occur. Careful Check Underway Until that work is completed, he said, it will be virtually impossible to give any consideration to a reorganization plan, since losses must be determined and accounts thoroughly checked. Whatever reorganization plan is finally adopted must be approved by the Comptroller of the Currency, it was pointed out. However, that office will not arbitrarily set up a plan and put it into effect without first discussing it with parties it feels are to be primarily considered. It was indicated that both the depositor-shareholders' committee and the trustees' committee would be called into conference over whatever reorganization plan is outlined by the Comptroller's office before it is effected. Claims To Be Filed Filing of claims against the association will begin today, according to announcement by M. L. Barnett, jr., receiver of the defunct institution. Barnett has made a schedule to be followed by the depositors in order to avoid confusion and congestion. Realizing that there will be more than 18,000 claims, he has directed the various claimants to file their claims at appointed hours on designated days. Sixty days will be required to complete the filing. -VOTE AMERICAN-

4. September 4, 1936 Evening Star Washington, DC

Article from Evening Star, September 4, 1936

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DELAY RHODES CASE UNTIL OCTOBER Police Court Grants Second Continuance in Fidelity Ex-Head Hearing. The case of Fred B. Rhodes, former president of the closed Fidelity Building and Loan Association who is charged with embezzlement, was continued until October 1 when brought up in Police Court yesterday before Judge John P. McMahon. This was the second continuance asked by the Government, it is understood, because the case is to be presented to the grand jury. Rhodes is charged with embezzlement of $13,000 from the Fidelity. At the association, the receiver now is receiving proofs of claims from depositors. The Treasury Department, which is in charge of the institution, is not ready to decide what will be done with it, officials explain, as the total liabilities will not be known until a complete check up of all the proofs of claims against the assets of the bank.

5. September 29, 1936 The Washington Times Washington, DC

Article from The Washington Times, September 29, 1936

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INDICT RHODES IN FIDELITY SHORTAGE Former Building, Loan Head Charged With $93,519 Larceny Larceny of $43,519.59 of the funds of the Fidelity Building and Loan Association, of which he was president, was charged in an indictment reported by the District Grand Jury today against Fred B. Rhodes, 64-year-old lawyer and banker. Rhodes was arrested July 18, at the same time the building and loan association was placed in the hands of a Treasury receiver. He is now at liberty on bond of $5,000 under the original charge of misappropriating approximately $7,500 of his institution's funds. Coupled with the larceny charges are two separate indictments for alleged forgery. The larceny indictment is in 20 counts, each alleging separate instances of illegal withdrawal of the bank's funds. The two forgery indictments include one true bill alleging one count of forgery and the other alleging three separate forgeries. Penalties Involved The larceny indictments are based on special laws governing the operation of building loan associations in the District which provide that any misappropriation of such funds shall be considered larceny and punishable as such. Maximum penalty on the larceny counts is 10 years on each, making a possible total of 200 years. The penalty for forgery in the District is also 10 years in prison. According to the outline of the case presented by Assistant United (Continued on Page 23, Col. 2)

6. March 4, 1937 Evening Star Washington, DC

Article from Evening Star, March 4, 1937

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URGES FIDELITY REORGANIZATION U.S. Home Loan Bank Board Proposes Change to Federal Association. Reorganization of the closed Fidelity Building and Loan Association into & and loan to the was Federal proposed savings Treasury association Department today by the Federal Home Loan Bank Board. proposal, in the form of a report, was comprehensive The presented of the of the controller this morning, but no currency in the office details of its contents were divulged. The action today follows an examination of the Fidelity by the Loan Bank exwhich was officially perts Federal Home announced Board Currency first by Controller of the F. T. O'Connor January 7. Controller O'Connor was out of the city, so the report was taken in charge by his aides. No comment was forthcoming from the controller's office concerning the proposal itself, beyond the fact that it had been received and taken into consideration. Controller Indicates Course. of what shareholders might in a An indication expect reorganization was however, by the his statement himself forecast, in of controller January. "Such a reorganization," O'Connor explained at that time, "would contemplate the creation of an insured Federal savings and loan association through which, if consummated, there made available to of Fidelity their holders would be sound the respective share- value proportionate share of the of the assets of the association." A considerable period of time is expected by those familiar with the situation to be used by the controller's office in going over the official report. it is known that the Bank who is under the receiver, While Board examiner co-operated direction with of the the entire plan as evolved board for by controller, the reorganization has office. a for the controller's in its new Never problem before history has called the office of the controller been upon to reorganize a building and loan association. It has handled numerous closed banks. Could Have Money or Stock. should be If a the Federal Fidelity and reorganized loan as savings assoa new institution which would offer set ciation, up the would out members their be the of taking or reinvesting it in money opportunity the would insured institution. Each depositor receive his proportionate amount, whatever that proportion was. connection an interesting in the local development In this courts has set the that can100 per cent, must not up be allowed principle offsets but cut is made for all In other members take whatever alike. words, in under a decision, those who are the double of both court position association owing the association and having the will get only proporand cannot owe tionate them, share their have the debt offset against the credit 100 per cent. The sound assets of the Fidelity, as predicted by the controller himself in statement, would be used as for the new his a earlier basis organization. bank board, The examination by the the explained, of a in primarily controller "classification order to consisted of deter- the of such assets be mine assets which of Fidelity board would assets acceptable to the bank as of insured Federal a new whether savings suffi- and loan association, and a of acceptable assets are to the available cient amount justify reorganization of the Fidelity." The proposal now rests with the (See FIDELITY, Page A-9.)

7. March 9, 1937 The Washington Times Washington, DC

Article from The Washington Times, March 9, 1937

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RHODES TOLD HIM, HE ASSERTS Jury Hears of Visit To Bank Office From Desire A. Irr As early as March, 1936, Desire A. Irr, 65 K St. N. W., had been apprised that some of his deposits in the Fidelity Building and Loan Association had been used for emergency purposes without his previous knowledge and he had ratified the transactions, he testified in United States District Court today in the forgery trial of Fred B. Rhodes, former president of the defunct institution. Rhodes is charged with forging Irr's name to a $1,500 withdrawal slip, the funds accuring from which, the Government contends, were used to cover an overdraft in Rhodes' personal account. Irr, called to the stand by Prosecutor John J. Wilson shortly before the noon recess, had engaged Rhodes as his attorney in legal matters over a period of many years, he said, and was a large depositor in the institution. No Power of Attorney Never at any time, he testified, had he given Rhodes a power of attorney in their financial or legal transactions. The account of Irr was a participating account, it was devel. oped on cross-examination by Defense Attorney William E. Leahy, and, although Irr testified he had not specifically authorized the $1, 500 withdrawal slip, he said that early in March of 1936 Rhodes called him to his office. In the conference that followed. Irr said, Rhodes advised him that the building and loan association was occupying too much of his time and he felt that he should spend more time in his law office. In order to enable him to devote more time to his law practice, Irr quoted Rhodes as saying, he would send Mr. Borchardt to handle the association affairs. Transactions O. K. Concluding the interview, Irr told the jury that Rhodes further advised him that demands upon the association had been so heavy and money had been so scarce that some of Irr's funds had been temporarily used to meet emergency requirements. Treasury officials knew of the abstractions, Irr said Rhodes told him, and had approved them. Irr told the jury he had informed Mr. Rhodes that "it was all right with him."

8. March 14, 1937 Evening Star Washington, DC

Article from Evening Star, March 14, 1937

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U. S. IS PREPARED FOR RHODES TRIAL AGAIN NEXT MONTH Jury Fails to Agree After Nearly 22 Hours of Deliberation. PANEL IS REPORTED 11-1 FOR CONVICTION Veniremen Asked Further Instruction on Meaning of "Intent" in Forgery Count. The Government is prepared to go to trial again next month with the forgery charge against Fred B. Rhodes, former president of the Fidelity Building and Loan Associaon which a jury retion, yesterday criminal diported disagreement in vision 1 of District Court. This announcement was made by Assistant United States Attorney John J. Wilson, Rhodes' prosecutor, when the 10 men and two women reported "hopeless" disagreement after being out for nearly 22 hours. Wilson said the jury stood 11-1 for conviction. This is one of eight forgery counts Rhodes, and is based on the of a $1,500 making against withdrawal A. slip Irr, the account of Desire who was a against 65 K street, large depositor at Fidelity, which closed July 18 last. The former Fidelity head also was indicted on 20 larceny counts. Jury Got Case Friday. The jury, which got the case at 2:45 o'clock Friday, after hearing testimony and argument since Monday, reported in at 12:30 p.m. yesterday. Justice Peyton Gordon, presiding, addressed the foreman, Eugene C. and asked if a Gott, sr., verdict had been reached. The foreman said no. "Do you desire to retire for further deliberation?" Justice Gordon asked. "I think it's hopeless," Gott answered. "In that situation, I will discharge you from further consideration," Justice Gordon said. Surrounded by members of his family, and with William J. Hughes, jr., of counsel, Rhodes heard the jury finding. The jury deadlock was in evidence two hours after consideration of the case had begun. At 5 o'clock Friday evening, they sought to be discharged, but were sent back by Justice Gordon, and at 9, when no verdict was reached, he ordered them locked up for the night. Ask Further Instructions. yesterday Shortly the jurors before asked 12 Justice o'clock Gordon for further instructions on the term "intent" under criminal law. The judge an the was final explained. disagreement Within half announced. hour United Wilson States was Attorney aided Howard by Assistant Boyd in the case, E. was while presenting William Government's Leahy chief counsel for Rhodes. The Treasury now is considering a plan in conjunction with the Federal Home Loan Bank Board for reopening Fidelity.

9. May 18, 1937 Evening Star Washington, DC

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SUCCESSOR SETU FOR FIDELITY LOAN First Federal Savings to Acquire Assets After Court Hearing. With the First Federal Savings and Loan Association of Washington formally established late yesterday, plans moved forward today toward its eventual purchase of all assets of the closed Fidelity Building and Loan Association from the receiver now in charge, so as to make available to shareholders 85 per cent of their funds. Final formalities were completed for the First Federal when a certificate was issued for membership of the new institution in the Federal Home Loan Bank of Winston-Salem, N. C. This makes the new First Federal a member of the Home Loan Bank System, so that it may borrow from the bank of Winston-Salem on its assets and may have the Home Ownerrs' Loan Corp. invest in its shares, if such investment is found necessary to meet the building and loan business need here. The new First Federal also was issued a certificate of insurance by the Federal Savings and Loan Insurance Corp. This insures each account in the new institution up to $5,000. Meantime, while the Federal Home Loan Bank Board and its affiliated agencies had been completing the establishment of the new institution here, the receiver at the Fidelity has been busy preparing a schedule of assets on the basis of which these assets are to be sold to the new Federal by approval of the court. Many details remain to be worked out by the receiver. under direction of the controller of the currecy, in establishing a minutely accurate and comprehensive record for the court of each shareholder's account and each loan. Shareholders are to be invited to inspect the books later at the receiver's office to check the accuracy of the schedule. The new institution formally is to call upon the controller of the currency to sell the assets, and the matter then will go before the court with the detailed schedule of assets for court approval. The court is expected to set a date for a hearing on the proposed sale. How long the remaining procedure will take before the doors of the new First Federal open cannot be accurately estimated. But all officials concerned were working today toward as early a date as possible. The biggest job still remaining completion of the schedule.

10. August 5, 1937 Evening Star Washington, DC

Article from Evening Star, August 5, 1937

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CONFERENCE SET IN FIDELITY CASE Parley of Important Officials of Three Agencies to Be Tomorrow. New hope for reorganization of the Fidelity Building and Loan Associaas it was of important that tion a loomed conference today officials learned be concerned will at of held three tomorrow agencies morning the Treasury Department. In the conference will be represented officials of the office of the of the currency, of the Fidelity; control controller the who Federal is in Home Loan Bank Board and the First Federal Savings and Loan Association, which has been chartered by the board to take over Fidelity, but which had previously withdrawn from the picture. The conference was arranged by a C. Bullis, Shareholders' Mrs. Mark Committee, chairman who of has active in to officials been very together attempting discuss the to con- get troversial case of Fidelity. The Treasury probably will be represented by Deputy Controller Gibbs and the Loan Bank Board will Lyons others; be Federal represented Home by Horace Russell, its general counsel, and Arthur J. Younger, chief of the and Federal will the board's First savings loan be division, represented and by P. Somerville, its president, and Mrs. Bullis Harry others. will be present representing her Shareholders' Committee. This development followed swiftly on the heels moves today of around several the Fiyesterday centering delity. Pressure Is Applied. From two different quarters pressure was being applied by shareholders committees to bring about a reorganization. In response to 2 plea from Mrs. Somerville Bullis, consideration announced he of was the willing to resume Fidelity Said of our the The attitude problem. Somerville: board is when it was it can in any way is, same if as organized-that assist the depositors of Fidelity in effecting a reorganization plan, it is still willing to do so." Ready to Discuss Matter. He repeated what he stated in his letter of withdrawal written to the Federal Home Loan Bank Board to "if the receiver could the assets on an the liquidate effect that wasn't 85-cent basis. as estimated, there any reason for a reorganization. "However," he said, "if the deof still are positors Fidelity I desirous of a reorganization am perto discuss having fectly willing the matter with the proper officials." Another depositors' committee, working separately from Mrs. Bullis group, planned to approach officials of the First Federal with a proposal to Fidelity, pay 85 cents on and enlarge the reorganize dollar the present Fedof Directors of the First A. Sullivan, eral. Board George contractor, four chairman of this committee, and other members already have conferred with officials of the office of the controller of the currency and of the Federal Home Loan Bank Board. d They planned to continue their negotiations today. Committee Is Named. The Fidelity problem has reached 1 where it has aroused leaders I District of of the the point Columbia Building commitand Loan League to action. A tee of three has been appointed, it was e learned today, to "co-operate" in efforts to help solve the problm. The 1 committe consists of Edward C. Baltz, secretary of the Perpetual Building & : Loan C. Association: Clinton James, counsel for the District of Columbia

11. October 29, 1937 Evening Star Washington, DC

Article from Evening Star, October 29, 1937

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16 CLOSED BANKS LIKELY TO YIELD ADDED $7,900,000 Dividends to Go From 70.9 to 90.9 Per Cent, O'Connor Report Predicts. FIDELITY SALE APPROVAL MAY COME NEXT WEEK of the 16 Houses Will ReFour turn 100 Per Cent to Depositors, Receivers Estimate. Depositors in 16 closed about banks $7,900,000 here more probably than will they get already official have estimate received, by T. according to of an the Currency J. F. O'Connor, Controller in charge of these receiverships. dividends here probably cent Average be increased from 70.9 per will per cent, he said. to 90.9 in the Fidelity also Building was Progress Loan Association case who said and by the Controller, assets to reported proposal for sale of Savings its and the First Federal would go the new Association probably next Loan to court for approval early made week. announcements address were last night by These the before Controller the in National an Woman's Democratic Club. 16 banks in receiver- clos"We whose have deposits at date Controller of ship ing were $39,893,928, the the said. "Deposits have been paid 70.9 off per in cent, of $28,298,256, or It is esti- to amount offsets allowed. recoveries including additional $7,979,415. mated that will aggregate means that it depositors or 20 per cent, which depositors of these 16 banks will receive is expected that an average return of 90.9 per to cent. Make Full Return. "The total Four average percentage collections, of expense inof liquidation to allowed, is 6.8 per cent. of cluding offsets estimate that 100 four per The receivers banks will return Two rethese 16 more to depositors. District alceivership cent ready or have banks paid in their the depositors Bank in full. Chevy Chase Savings 108 per has "The returned to Woodridge-Lengdon depositors paid cent, while Commercial the Bank has cent. Savings & amounting to 100 have per been dividends these receiverships Chase Savand of assets terminated ings Both Bank of had a the stockholders' remainder Chevy agent.' the to to the name controller he The deliver two banks which did cent not or estimated more to other 100 per of F. J. depositors. been would return of the The United recent States report interpreted Savings s indicating out. Young Bank, however, this has receivership will be as those to pay of one of and conservators 15 "The banks receivers in from the District the Reconstruction of Columbia said the Finance borrowed Corp. $14,408,583," all but $1,071,048. which controller," is owed and by five banks, has been repaid." Fidelity Case. Discussing the Fidelity case, Mr. O'Connor said: plan worked out, the and re"Under the the Fidelity Building assets of of will sell the Loan ceiver old Association association in bulk and to the as the association assonewly-established price the new as to purchase will furnish through funds so the reenable ciation the controller and final dividend of ceiver of 85 per to pay cent a first to all shareholders the old association. the that old the receiver. It shareholders is necessary, legally of course, establish The their face amount claims association with of shareholders' aggregates accounts will approxi- be 85 in the old $4,500,000. Dividends approximately mately per cent of that or $3,825,000. covering the proposed the new "A contract agreed to by Fedsale has been receiver and the association, the Board. The ofof the of advice from eral fice Home controller Loan receipt Bank of the currency is now awaiting Federal Savings & Loan Home Asthe First and from the Federal offisociation Loan Bank Board of formal and be cial approval. expected that details few will days "It is out during the next approval worked petition requesting next week." and can that be filed a in court probably

12. November 8, 1937 Evening Star Washington, DC

Article from Evening Star, November 8, 1937

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been hanging fire for more than a year, negotiations for sale of its assets to new First Federal Savings & Loan Association apparently being deadlocked several times before agreement finally was reached. Fidelity closed its doors in July, 1936. Distribution of an 85 per cent dividend to shareholders of the closed Fidelity Building and Loan Association before Christmas, either in the form of cash or in shares of the new First Federal Savings and Loan Association, was predicted today by Controller of the Currency J. F. T. O'Connor. The controller made his announcement in the form of an official statement after the receiver, James H. Nolan, had filed a petition in District Court submitting a proposed sale of assets of Fidelity to the new First Federal. Justice Daniel W. O'Donoghue, at the request of Mr. Nolan's attorneys, fixed November 22 as the return date for hearing and consideration of the sale. "If and when the sale is approved," the controller said, "immediate steps will be taken to complete the transaction, and it is anticipated that within a few days after approval by the court the 85 per cent dividend to the shareholders will be available for distribution. The 85 per cent dividend, under the proposed contract, will be payable either in shares of corresponding amount in the new association or in cash, at the option of the shareholder." O'Connor Pleased Personally. Mr. O'Connor expressed his personal gratification over the successful conclusion of long-drawn-out negotiations in the Fidelity case. Amplifying his formal statement in an interview, the controller said that unless the proposal were blocked somehow in the court from some source of which he had no kiowledge, there would be no question but that the dividend could be distributed before ) Christmas. e "The completion of this sale," said ; Mr. O'Conner's statement, "will be ) the culmination of serious and earnest efforts to work out a solution of the problems presented by the receivership of the old association, and it has , been made possible by the hearty and i generous co-operation of the Federal ) Home Loan Bank Board and the representatives of the new First Federal 1 Savings & Loan Association of Washington. "Upon the approval of the sale by the court, all shareholders will be notified and instructions will be issued concerning the distribution of the proposed dividend." Setting of November 22 as the re; turn date was suggested by George P. Barse, general counsel of the Treasury Department's Division of Insolvent Banks, who told the court "there may : be some objection to the sale." The reorganization of the old Fidelity by means of the sale to the First Federal of its assets has been approved by the controller of currency and the Federal Home Loan I Bank Board, through whose facilities 1 the First Federal was formed. e Shareholders in the new institution 1 will be insured up to $5,000 for each ) investor by the Federal Savings and Loan Insurance Corp. 1

13. January 25, 1938 The Washington Times Washington, DC

Article from The Washington Times, January 25, 1938

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Fidelity Plan Gets 0. K. Justice. Daniel W. O'Donoghue in District Court today removed the last legal obstacle for complete reorganization of the Fidelity Building and Loan Association when he signed an order approving sale of the institution assets to the First Federal Savings and Loan Association. Immediately upon signing of the order, the Comptroller of the Currency announced machinery will be set in motion by James H. Nolan, Fidelity receiver, to accommodate the 18,000 depositor-shareholders of the institution. With a $4,000,000 melon to cut, the depositor-shareholders will be canvassed by postal cards to determine whether they wish their slice of the melon to be converted into new shares in the First Federal institution or to cash. The order for the sale of the assets was drawn by George P. Barse, general counsel for the Treasury's insolvent bank division.