Solvent

Fidelity Investment Association is one of the largest U. S. "thrift plans." has sold $600,000,000 worth of its contract certificates on the installment plan in its history. Shortly before Christmas SEC charged Fidelity with something less than fidelity to its 60.000 investors. Publishing untrue statements, not maintaining required statutory reserves, writing up book value of securities, using investors' funds for the benefit of its officers--such were SEC's accusations (TIME, Dec. 26).

Fidelity's president, 68-year-old Carmi Alderman Thompson, onetime Treasurer of the U. S. (1912-13), protested bitterly. But rather than go through lengthy litigation on the matter, he agreed to a permanent injunction terminating all the alleged violations of SEC regulations. This quieted SEC but brought a court petition from nine Fidelity shareholders asking that it be put into receivership for insolvency. While Fidelity voluntarily ceased selling certificates and making payments, the case dragged through several postponements in Federal District Court of Wheeling, W. Va., headquarters of the company.

Last week Carmi Thompson and his badgered associates finally won a clean bill of health. On the basis of an independent audit by a special master. Judge William E. Baker declared Fidelity fully solvent, dismissed the petition.

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