Percent

Percent

First National City Corporation

Four stockholders held 2 or more percent of such stock, This, the second largest commercial bank in the nation, led again by the bank itself through three nominees and was the largest bank reporting its 30 largest stockholders

one trust account, with 5.7 percent; followed by: as requested. Subtracting the treasury stock, as noted above, the remaining 29 stockholders accounted for 22.4 Commerce Bank of Kansas

2.6

(through three nominee accounts) percent of all voting common stock of the corporation.

Chase Manhattan..

2.4 Only three stockholders (all were banks listed under their State Street Bank of Boston.

2. 1 nominees) held_2 or more percent of the stock of First (through two nominees) National City. These were:

Eight New York banks combined held a total of 15.6 First National City itself.

4. 3 percent of the common stock of Bankers Trust. (in 4 nominee accounts) Chase Manhattan..

2. 7 First Bank System (Minneapolis) (in 3 nominee accounts) Morgan Guaranty.-

2.0 The First Bank System (Minneapolis) identified by (in 3 nominee accounts)

name the 19 of the largest stockholders that were bank Eight New York banks through their nominee accounts nominees and beyond that designated the kind of holder held 14.0 percent of the voting stock of First National and amount of shares (e.g., insurance company, mutual City.

fund, charitable foundation, individual, family estate) of

the other 11 holders without disclosing the names of such Chemical New York Corporation

holders. The 29 largest holders of voting stock of Chemical New The 30 largest shareholders accounted for 40.6 percent York Corporation, the seventh largest bank in the United of First Bank System's capital stock. By far the largest States, held 23.8 percent of such stock. Only two stock- holder was the First Bank System itself, through the holders held 2 or more percent of the voting shares of various nominees of the member banks of the System. common stock:

These include: (1) two nominees of the First Trust Com

pany of St. Paul, Brack and Company with 7.1 percent of Chemical New York Bank...

5.4 the stock,' and Sod and Company with 1.2 percent of the (through four nominees of its subsidiary, Chemical stock; (2) two nominees of First National Bank of Minne

Bank (New York)) Cede and Company

2.2 apolis, with 5.1 percent of the stock between them; and (the nominee of the New York Stock Exchange)

(3) one nominee of the Northern City National Bank of

Duluth with 1.1 percent of the stock. Thus, the nominees Eight New York banks combined held 11.1 percent; as already noted nearly half of that was held by nominees of three member banks of the First Bank System held of Chemical New York Corporation itself.

among them 14.6 percent of the stock of the System,

The only other holders of more than 2 percent of the Bankers Trust Company (New York)

stock were two New York banks, First National City The picture here is quite similar to that of Chemical

· The largest single account in Brack and Company was the New York. The 30 largest holders of Bankers Trust Employee's Deferred Payment Profitsharing Trust Plan, with 3 common stock account for 28.4 percent of such stock. percent of the total stock of the First Bank System.

Percent

Percent

Percent

4. 9
3. 2

2. 9

Percent

with 3.9 percent in three nominee accounts, and Morgan at least 54 nominee accounts including 17 in Morgan Guaranty with 2.8 percent in two nominee accounts. Guaranty of New York, and 11 of Citizens and Southern, Five New York banks held a total of 8.5 percent of the itself. The inclusion of all nominees would tend to increase shares of the First Bank System.

the concentration of holdings among the top 30 companies,

and of those banks with many nominees in particular, as Republic National Bank of Dallas

compared with other reporting banks. The 30 largest stockholders accounted for 35.8 percent With this caveat, it can be seen that Citizens and of the outstanding common capital stock of the bank. Five Southern National Bank reported that 42.5 percent of its shareholders held 2 or more percent of the stock, headed, stock was held by the 30 largest stockholders. Five firms, as in the case of the other banks mentioned above, by the

all banks through their nominees, held over 2 percent of bank itself which, through two nominees, held 6.4 percent They were, in order of size of holdings:

the total stock of Citizens and Southern National Bank. of the stock, followed by: Hoblitzelle Foundation of Dallas..

Citizens and Southern..

10. 8 Manufacturers Hanover of New York..

(itself, through 11 nominees, as noted above, and as (through 2 nominee accounts)

trustee in one instance) Bank of Delaware, Wilmington.

3. 2
First National City -

6.7 Southland Life Insurance Co.---.

(in three nominee accounts) Mellon National Bank, Pittsburgh.

4. 5 Four New York banks combined held 6.6 percent of the (in three nominee accounts) stock of Republic National Bank of Dallas.

Morgan Guaranty..

3. 6

(in 17 nominee accounts) Girard Bank

Bankers Trust...

2. 3

(in four nominee accounts) The 30 top stockholders accounted for 29.1 percent of Six New York banks combined held 14.1 percent of the the common stock of the Girard Bank. Six held 2 or more

common stock of Citizens and First National, with the percent of the stock, led again by the bank itself with 5.7

three New York banks just mentioned accounting for 12.6 percent through two nominee accounts of its subsidiary,

percent. Girard Trust Bank. Other leading holders are:

Shawmut Association First National City of New York --

3. 2 (through 2 nominees)

In reporting its largest stockholders, Shawmut actually Providence National of Philadelphia -

3.0 listed 31 holders (the 29th, 30th, and 31st all holding (through 2 nominees) First Pennsylvania Bank, Philadelphia.

equally 5,000 shares). Omitted was the holding of one un

2. 8 Fidelity Bank, Philadelphia..

2. O

named individual with 5,460 shares, or 0.2 percent of the Insurance Co. of North America, Philadelphia.--- 2.0 total outstanding. Four New York banks accounted for 4.5 percent of the

On the basis of this tabulation, Shawmut Association stock of the Girard Bank, and six Philadelphia banks, in

has far less concentration of its common stock holdings cluding Girard itself through nominees, 14.5 percent.

than the other reporting banks with the top 31 holders

accounting for only 15.0 percent of the stock. No single First National Bank in Dallas

holder had as much as 2 percent of the shares. Three New

York banks combined held 1.6 percent and five Boston The top 30 stockholders accounted for 34.4 percent of banks held 3.4 percent of the shares. Olsen & Company, a the common stock of the First National Bank in Dallas. nominee of National Shawmut Bank of Boston, Trust Four of these 30 held 2 or more percent of the stock of the Department, subsidiary of Shawmut Association, was the bank:

largest holder with 24,206 shares or 1.3 percent of the total;

this represents primarily shares held for employees of First National City of New York.-

10. 2 affiliated banks in the holding company under profit (through four nominees) First National Bank in Dallas.

5.1 sharing and stock purchase plans. (in five nominee accounts)

A few at least tentative conclusions can be reached from Bank of Delaware, Wilmington.

3. 1 N. P. Powell of Tyler, Texas.

2. 5

the information in this section of the report. Perhaps most Four New York banks combined held 13.3 percent of striking is the small number of banks supplying the infor

mation requested, and the fact that those that did report the common stock of First National Bank in Dallas.

fully were spread fairly evenly by size among the 50 banks Citizens and Southern National Bank

circulated (i.e. three in the first quintile; one in the second

quintile; two in the third quintile; one in the fourth quinThe response from Citizens and Southern National Bank tile; and two in the fifth quintile). Second is the fact that of Atlanta, Georgia, is not strictly comparable to the other the principal holder in eight of the nine reporting banks eight banks (or any of the other reporting companies) was the bank itself through various nominee accounts. whose tabulations are summarized here. In some ways it is The extent of bank discretion in voting or influencing the the most informative response received. Instead of treating voting of such shares would be worthy of further a single nominee account as one of the largest stockholders, exploration. Citizens and Southern chose to consider all of the nominees A concomitant question also worthy of consideration is of a single bank or other financial institution as one why so rarely any holders outside of banks appear in the account. Thus, information is supplied on the holdings of list of holders of more than 2 percent of bank stock.

Percent

Chapter IX

LIFE INSURANCE COMPANIES

There are several factors which help account for the tal Life is wholly owned by Transamerica Corporation; fact that only a single complete response was received in Continental Assurance Company is wholly owned by reply to the letter sent by Senator Metcalf to the 24 CNA Financial Corporation; Jefferson Standard Life is largest stock life insurance companies in 1970, ranked by wholly owned by Jefferson-Pilot Corporation (the latter assets."

owns 11.2 percent of the outstanding common stock of the CLAIM OF CONFIDENTIALITY

NCNB (banking) Corporation); Life Insurance Company

of Virginia is 99.5 percent owned by the Richmond CorSeventeen of the stock companies reported either that poration; State Farm Life Insurance Company is wholly the requested information was, in whole or in part, con- owned by State Farm Mutual Automobile Insurance fidential, or that the companies were subsidiaries of other Company; Life and Casualty Insurance Company of Tenfirms, or both. Thus, for example, Lincoln National Life nessee is wholly owned by American General Insurance Insurance Company reported that it is wholly owned by Company of Houston, Texas. Eighty-five percent of the Lincoln National Corporation, and that information on stock of Equitable of Iowa is owned by a trustee of the individual holdings of the latter was considered private F. M. Hubbell Estate and individual members of the and confidential.

Hubbell family or trusts created by them. Similarly Washington National Insurance Company is

A special case is involved in the Teachers Insurance and wholly owned by Washington National Corporation, and Annuity Association which reports a single stockholder, a its reply indicated that stockholder records of the latter Special Act Membership Corporation called "Trustee of are confidential. However, it was reported that the T.I.A.A. Stock”, as incorporated by the New York State Kendall family, trusts, and associates owned 60.3 percent Legislature in 1937. of the common stock of the Washington National Corporation as of February 15, 1972.

FAILURE TO RESPOND Franklin Life Insurance Company reported as public information that the Continental Corporation of New Five stock life insurance companies (Aetna, National York owned 5,711,624 or 27.1 percent of the 21,007,853 Life and Accident, American National, Kansas City Life, shares of its capital stock outstanding, and that the and Southland Life) failed to respond to Senator Metcalf's second and third largest holders, not identified by name, letter. owned 1.32 and 1.25 percent of total stock, respectively; however, other holdings were considered confidential. Travelers Corporation

Connecticut General Insurance Company considered the information requested as confidential but did indicate that

This leaves as the only life insurance company whose the top 30 consisted of three long-term residents of Hart

response was complete enough for tabulation, the Travelers ford, two State retirement systems, an investment bank- Corporation of Hartford, Connecticut. The 30 largest ing house, and 24 bank nominees.

stockholders accounted for 34 percent of total shares of Seventy percent of all the stock of United Benefit Life

common stock of Travelers outstanding. The only holdings Insurance Company is owned by Mutual of Omaha, but

with 2 percent or more of total shares were those of three other holdings are considered confidential.

New York and two New England banks as follows: Nationwide Corporation reported two classes of common stock, each class having half of total voting power. Class A Morgan Guaranty.

6.0 stock is publicly held, but names of holders are considered (through five nominees)

3.8 confidential. Class B is owned by Nationwide Mutual In

State Street, Boston...

(through nine nominees) surance Company and Nationwide Mutual Fire Insurance

Connecticut Bank, Hartford.

3. 5 Company.

Chase Manhattan.

3. O Four companies (Southwestern Life, Liberty National (through two nominees)

2. O Life, Northwestern National Life, and Provident Life and

First National City--Accident Insurance) refused to divulge any stockholder information on the grounds of confidentiality.

It may be of passing interest to note that Travelers is Beyond those already referred to, the following com- one of five Connecticut companies that rank among the panies are wholly owned subsidiaries of others: Occiden- 50 largest life insurance companies of the United States.

Two are mutual companies, one other failed to respond, 1 It should be noted that many of the largest life insurance and one, Connecticut General, declined to give the companies are mutual companies. In fact 26 out of the 50 largest life requested information, but cited no reason under Coninsurance companies of the United States and six of the top seven are mutual companies. These six are: Prudential, Metropolitan, necticut State law which might serve as justification for Equitable, New York Life, John Hancock, and Northwestern. its declining Senator Metcalf's request,

Percent

740, 000
485, 000
477, 900

1, 576, 430

254, 904
237, 002

} 491, 906

3. 5 1, 1

Boston banks:

(Touchstone & Co.. State Street...

Bark & Co.

(Harwood & Co...
Hartford banks:
Connecticut Bank.

Johnson & Co.-
Hartford National.

Dike & Co.

(Dark & Co.
Minneapolis banks:
Northwestern National.---

PERC & Co...
New Jersey banks:
Fidelity Union Trust (Newark)-

Saul & Co.-
Chicago banks:
Harris Trust.

EMP & Co...
Pittsburgh banks:
Pittsburgh National...

Elm & Co.--
Wilmington banks:
Bank of Delaware.

Carothers &

Clark.
California banks:
Bank of California..

Calpers & Co...
Cleveland banks:

Central National of Cleveland.----- Parness & Co.---.
Brokers:

Merrill Lynch, Pierce, Fenner & Smith Inc.-
Funds:

New York State Teachers Retirement...

System.
The State Teachers Retirement Board of

}

705, 200

1.6