$31 a share because of rumors that the Philippine Commonwealth would buy them for $65. Philippine Commonwealth President Manuel Quezon denied the rumor and the bonds crashed. The U.S. Securities and Exchange Commission launched an investigation and William P. Buckner Jr. and William J. Gillespie, members of the bondholders protective committee, were convicted of mail fraud and conspiracy. Also convicted of a lesser charge was Filipino Felipe Abreu Buencamino, whip of the Philippine Assembly and confidant of President Quezon, who allegedly received $50,000 () to cooperate with the plan. In 1974, then President Ferdinand Marcos entrusted its ownership, management and operations to Philippine Veterans Investment Development Corporation (PHIVIDEC) under DBP BR No. 3463, s. of 1974 as amended by BR No. 3593, s. of 1974. In consideration of DBP's transfer of the railway to PHIVIDEC and pursuant to a Deed of Assignment dated December 12, 1974, PHIVIDEC issued to DBP shares of stocks worth ₱5 million, PHIVIDEC spun off its transport division and organized a subsidiary corporation, Phividec Railways, Inc. In 1976, DBP extended to Phividec Railways, Inc. a ₱5.500 million Industrial Loan and a ₱4.000 million Guaranty Loan for the rehabilitation of the railroad tracks and acquisition of additional rolling stocks, as well as, major equipment. As security for the subject loan accommodation, Phividec Railways, Inc. mortgaged some of its assets in favor of DBP. On March 8, 1977, Phividec Railways, Inc. mortgaged in favor of DBP certain machinery and equipment located in Iloilo City and parcels of land. On May 12, 1979, then President Marcos approved the sale of PHIVIDEC's share in the Phividec Railways, Inc. to the Philippine Sugar Commission (PHILSUCOM). This covered the conversion of its ₱45 million DBP loan into equity either in the form of cumulative preferred shares or common shares with defined representation. Pursuant thereto, an agreement to sell 4,200,000 PHIVIDEC shares was entered into on May 25, 1979 by PHIVIDEC and PHILSUCOM, subject among others, the assumption by the latter of the obligations of the former with DBP and to guarantee the payment of such financial accommodations. Thereafter, Phividec Railways, Inc. changed its corporate name to Panay Railways, Incorporated (PRI). In compliance, thereto, PRI issued stock certificates aggregating to ₱53.727 million on various dates, the latest of which was issued on June 19, 1984. Despite the prohibition contained in the aforementioned Deed of Undertaking, PRI obtained a loan from the Traders Royal