Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-06-24
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Continued From First Page
his questioning and in COM
ments TO reporters that he ex-
pected to show the need for
corrective legislation and the
inadequacies of the present
statutes governing the SEC.
Admits Taking Gifts
Mr.. Adams has acknowl-
edged accepting expensive gifts
from the New England textile
manufacturer and directing
inquiries to both the SEC and
the ETC on cases involving Mr..
Goldf1ne's companies. But he
has denied seeking any favored
treatment for him.
Mr.. Gadsby in his prepared
testimony specifically chal-
lenged assertions by subcom.
mittee members and others
that Mr.. Goldfine received pre-
ferred treatment because of
inquiries by the White House
and members of the Senate.
Nothing could be further from
the truth" the SEC chairman
testified.
He read a 30-page statement
detailing all developments in
the case and listed what he
called six Affirmative actions"
taken against one Of Mr.. Gold
fine's holding companies, the
East Boston Co., to force 1t to
comply with requirements on
filing financial reports.
He said the commission
dropped a criminal contempt
petition "as a part Of a final.
enforceable stipulation" APP
proved by a United States
court in Boston. He also made
the point that q $4,000 fine
once levied conditionally against
the company was revoked by
the court on its own motion.
Mr.. Gadsby said the COM
mission successfully pursued
the case" and obtained a court
order requiring East Boston to
pay a $4,000 civil contempt
fine and file corrected orders.
The filing Of reports. he en-
phasized. was the commissions
purpose in the first place.
The SEC chairman also spe-
officially denied that the COM
mission turned over to Gerald
Morgan, the Presidents special
counsel, any confidential in.
formation in the case. 1t has
been brought out that Mr.. Nor
gan inquired about the case at
the request of Mr.. Adams, and
held a conference on the mat
ter at the White House with
Thomas g. Meeker, SEC gen.
eral counsel.
Conference In 1855
Mr.. Gadsby said the con-
ference took place February
II, 1856. At this time, he added,
the commission had not even
filed its petition for criminal
contempt against the Goldflne
company.
A confidential investigation
Of the company, Mr.. Gadsby
also said, was not begun until
seven days after the general
counsel met with Mr.. Morgan.
The purpose of the investiga-
ton, the SEC chairman said,
was looking toward the posi-
bility Of additional action
against the company.
The SECS complaint against
East Boston was filed in 1854.
After a hearing in 1855, the
Federal court in Boston ordered
the company to comply with
reporting requirements and
gave it until November of
that year to do so.
On october 81, 1855, the
company sought an extension
Of time for filing its reports.
According to the commission,
it countered with motion that
the company. its officials and
controlling stockholders be held
in civil contempt for failing to
file the required reports.
$4,000 Fine Imposed
On November Is the court
held the company, but not the
individuals, in civil contempt
and imposed q $4,000 fine.
This was made conditional
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