Among the ideas that did not work out for General Financial Services and its subsidiaries was a plan to make for the many doctors who were GFS clients.

To this end, GFS salesmen sold stock and 8 per cent debentures (short-term loans) totaling $135,000 in a firm known as Washington Labs, Inc.

Washington Labs was to be run by Dr. John E. Stuach, a clinical pathologist who organized the partnership that built the Suitland building at 5001 Silver Hill Rd.

Stauch also owned two small medical labs, Bioproducts, Inc., and Physicians Bioanalytical Labs, Inc. Both, like the Suitland building, were in financial difficulty in 1973, when a GFS subsidiary bought the building.

Harry Ruddy, then president of GFS, told the Securities and Exchange Commission he had negotiations with Stauch over purshasing the two labs, but that a deal was never consummated.

However, stock certificates for Washington Labs were printed and billing operations were set up at GFS headquarters at 1835 K St. KW. (SECTION) tauch says that GFS did purchase his labs, then installed a new, fully equipped laboratory in the Suitland building. A medical equipment leasing company is suing Washington Labs. Harry Ruddy and others for $10,000 due on a lease for lab equipment at the Suitland building address.

Stauchs said that Ruddy put him on a $45,000 a-year salary, and made incremental payments at that level three or four times. "Then they cut it to $1,000 every two weeks." an annual reduction of $19,000, Stauch said.

Ruddy, in a interview with The Washington Post, refused to discuss Washington Labs. He told the SEC that everybody who had purchased Washington Labs stock either got their money back or had been swithched into other investments controlled by GFS.

Stauch said that the payroll of Washington Labs was running about $13,000 a week, but that the workload wouldn't support that. Ruddy, Stauch said, had thought he could get many of his almost 300 doctor clients to use the lab, but only "five or six" ever did.

"They had a Christmas party in 1973, downtown," Stauch said, "and told me how great things were going."

"Ruddy told me, 'I want you out.'"

Stauch occasionally occupies an office in the Suitland building to this day, attempting the collect old accounts due his defunct laboratories, he said. The building, although virtually, new, is no more than 40 per cent rented.

Stauch estimated his personal indebtedness at several hundred thousand dollars.He has long since been forced off the board of the United Bank and Trust Co., which he helped found. He claims he has no assets. His home, a large, secluded one in Tantallon, was transferred to an irrevocable trust to his children, he said.

"In 1971, I was a wealthy person, successful," Stauch said. "Now I couldn't afford to join the Boy Scouts . . . If you want a tax shelter, it's better to give it to the church. God loves you; the church loves you . . ."