Evening star., 1958-07-02
East Boston Co. Case
From GoIdfine's Side
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sure It was never brought to
my attention that this was or
might be considered a matter
.of Importance.
Little stock knowledge
I am not very familiar with
stock market operations. I have
devoted my business activities
to textile manufacturing and
to real estate. but outside Of
this field / have no financial
knowledge or experience.
Late in 1852 a stockholder in
the East Boston Co. had begun
legal proceedings and ! believe
1t was this action that alerted
the Securities and Exchange
Commission to the fact that
the company had not filed its
10K reports.
AS I have said previously, ell
I know about the proceedings
in the Federal court is that in
structions were given to protect
our rights, but to comply with
the law.
In July Of 1855 I was in
formed by the attorneys for the
company that the court had
ordered the filing Of the 10K
reports for the past years TO be
prepared and filed by a specific
date. They told me that the
accountant had said it would
be impossible to comply with
this order because he had to
go through a mass of docu-
ments and that there was con-
siderable information which
was not available in any rec
ords of the company.
In November of 1855 I was
informed that the Government
had instituted proceedings ask
ing that ! personally, together
with others. be held in con-
tempt Of court for failing to
file the reports.
I know that on November II,
1866, there was a hearing in
court and I was told that the
judge had found that the indi-
viduals. including me, were not
in contempt Of court but had
decided that the company itself
was in contempt Of court and
ordered it to pay a provisional
fine Of $4,000
-. I felt that $4,000 was
a lot Of money to compel the
company to pay and that it
would hurt me and the other
stockholders Of the company. !.
Pressed for Fine
On February 6, 1856, the
Government filed a motion ask
ing that the company be COM
PEELED to pay the fine and, I
am informed. we received a
copy of this motion about
February g.. 1856, the corrected
10K forms for the years men,
toned above had heen filed.
The attorneys and felt that
the Government was being ex-
tremely harsh and going out Of
its way to harasS the East Bos-
ton Co.
! do not have a clear memory
, of when I mentioned to Gov.
:: Adams the East Boston Co. I
! think 1t was either late in 1855
{: or early 1856. I feel certain
that I was not in Washington
Tor that specific purpose.
My best memory is that I
simply told Gov. Adams that
the company in which I was
interested, the East Boston Co..
was being given very harsh
treatment by the SEC and that
I felt that we we're really being
picked on.
/ did not ask Gov. Adams to
intercede for us or to do any,
thing in this respect.
Until these hearings began.
] knew nothing about what Mr..
Adams had done with the in
formation I had given him.
Certainly he never gave me
any information about our
troubles with the SEC, nor did
the pressure from them let up
after I talked to him.
At some later date I believe
I mentioned this matter more
specifically to certain Senators.
My complaint was to the
same effect, that is, that the
SEC was pushing us, a very
small company, much harder
than it seemed to push the
giant corporations. So far as
I know, these gentlemen made
inquiries in my behalf but
never brought any pressure to
bear. Certainly I did not ask
them to do so.
On March 26, 1856. my at
torneys reported that they had
good news; that the Judge on