Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-03-06

to statements and documents il
Exchange Commissions inveStig
A statement by Daniel L. {
Bush. former Coastal president,
trustee was actually held for
Virginia A. Dallam and John
w. Dallam as joint tenants with
right of survivorship."
Mr.. Dallam has said the stock
in the Silver Spring small loan
company is his wife's and not
his. He said she handles her
affairs Independently of him, and
that the money for the pur-
chase of the Coastal stock came
from an inheritance.
Sees no Conflict
He expressed the opinion her
ownership of the stock did not
represent any conflict of interest
In his regulation of small loan
companies under Maryland law.
Presented at the hearing was
a copy of the trust agreement
between Mrs. Dallam and Mr..
Bush dated April !, 1949. It
stated that she had put up
$l6,459 for 1000 shares of Glass
A common stock, 545 shares of
6 per cent preferred stock and
81 shares of Glass B common.
The trust agreement stated
that Mrs. Dallam desired such
investment to be a matter of
confidence" between her and
the directors of Coastal. The
stock was to be issued in the
name of Mr.. Bush, but held for
her or her heirs or assigns.
The agreement was amended
May IL, 1850. placing the shares
in both names with right of sur
vivorship. 1t stated that in the
event she died before him, Mr..
Dallam should have full title to
the securities. The number of
shares in this amendment is
given as 1,744. Testimony was
presented earlier in the hearing
that the Dallam shares now
number 1880.
Made for Record
The introduction of data re-
lating to the trust agreement
was part of a stipulation made
for the record on Friday by Mr.
O'Connor. Mr.. O'Connor said
he was ready to concede that
the SEC had proved five of its
eight charges.
The hearing before Examiner
James J. Ewell is on SEC charges
that Coastal violated commission
regulations in the offering of
$500 shares of its stock at $28. so
a share last August. The COM
mission has asserted that false
and misleading statements were
made.
Another point covered by the
stipulation related to William S.
Marshall. former administrator
of SECS Washington regional
Office. The statement was made
that MIR. Marshall arranged the
sale of the Gateway Finance Co.
of Pittsburgh to Coastal in jan
uary, 1855. under an agreement
that he would get a fee of
$4,000.
Coastal was to pay $4,000 if
the payment was approved by
Its directors. 1t was made a
matter of record, however, that
Coastal did not pay the sum.
Became Director
In March, 1855, Mr.. Marshall
became a director of Coastal.
When the loan company filed
statements with SEC relating to
the stock issue, however, Mr..
Marshall diSassociated himself
from handling the matter. His
employment by SEC ended last
January IL.
The stipulation was presented
while Mr.. Bush was on the wit
ness stand. Mr.. O'Connor stated
he was ready to concede that
the commission had proved five
OF the eight points in its COM
plant.
But Mr.. O'Connor argued in
an appeal to the full commission
that phrase that an alleged
violation in point No. had been
committed knowingly should be
eliminated. This concerned the
statement in the stock offering
circular that loans considered
uffncollectible had been written
off. The complaint stated the