Chapter IV INDUSTRIAL CORPORATIONS Letters requesting the names of top 30 stockholders and of the company's outstanding shares; the 30th account amount of their holdings went to the 100 largest industrial had less than 0.2 percent of such ares. All of the 30 companies. One of these, General Telephone and Elec- largest are intermediary holders, mostly nominees of tronics, has been shifted to the category of utilities, since banks. Similarly Standard Oil Company of California more than half of its revenues in 1971 was reported to be reported that its largest stockholder, a nominee of the derived from its telephone business. Crocker National Bank in San Francisco, held 5.6 percent For purposes of analysis, the industrial companies will of outstanding shares of common stock on behalf of embe divided into two categories: oil companies, the largest ployee members of the Company's stock plan. The Sun single industrial group among industrial corporations, of Oil Company provided only the information made public which there are 18; and all other industrial corporations, in its notice of annual meeting which included the fact 81 in all. that 18.2 percent of voting stock was held by the Glenmede A. OIL COMPANIES Trust Company as trustee of the Pew Memorial Trust, Of the 18 oil companies, four provided all, or virtually and another 16.5 percent also by Glenmede Trust Comall, of the information requested. These were Mobil Oil, Pany as fiduciary and co-fiduciary for a number of other the second largest oil company, Atlantic Richfield, trusts or estates. Mr. Walter C. Pew, director, as beneficial Continental Oil and Ashland Oil. owner and as trustee, held 3.3 percent. Shell Oil Company reported that 69.6 percent of its common stock outstanding is owned by Shell Petroleum CLAIM OF CONFIDENTIALITY N.V., the Hague, the Netherlands, which in turn is owned 60 percent by Royal Dutch Petroleum Company and 40 Six companies which considered the requested informapercent by the "Shell" Transport and Trading Company, tion confidential and therefore refused to supply it were Limited, an English company. Standard Oil Company of Ohio reported that British Phillips Petroleum Company, Union Oil Company of Texaco, Gulf Oil, Standard Oil Company (Indiana), Petroleum Company, Limited, had acquired the equiva- California, and Cities Service Company. lent of a 25 percent common stock interest in the company which could eventually reach 54 percent. FAILURE TO RESPOND PARTIAL RESPONSES Three companies, Occidental Petroleum, Signal ComThree companies gave very limited information. Stand- panies, and Getty Oil Company, failed to respond. ard Oil (New Jersey), now Exxon Corporation, the largest Highlights of the responses from the four companies petroleum company, reported that its largest stockholder which supplied the requested data follow the tabulations account is the Trustee of its Thrift Fund, with 2.8 percent on these companies inserted here. (29) Chemical Bank.. Jenkins & Co.--- Cross & Co. Steere & Co. Saxon & Co...-. Anderson & Co... PERC & Co.-- EMP & Co.-.- Pace & Co.--- Dean & Davis.... Trussal & Co. Nabank & Co. Equitable Life. Sealy & Smith Foundation for the John... Sealy Hospital. Mobil Oil Corp.-- 877, 544 433, 400 ATLANTIC RICHFIELD OIL COMPANY-Continued Cummings & Co.... Leslies Co... Cross & Co. Steere & Co.---- Saxon & Co. Anderson & Co.... Bark & Co.--- PERC & Co.----- Gunther & Co.--. Brown Brothers, Harriman & Co.--- Inc. Trustees of Atlantic Richfield Thrift Plan. System. Robert O. Anderson... Cities Service Co.. Subtotal.. 7, 356, 500 13. 3 New York Stock Exchange. Cede & Co. 2, 212, 980 2, 212, 980 4. 4 New York banks: S Salkeld & Co.:... Barnett & Co. (Cudd & Co.. Kane & Co... Thomas & Co. Sigler & Co. (Douglass & Co. Morgan Guaranty Stawis & Co. Schmidt & Co.-- Hare & Co ---- Atwell & Co... C. A. England & Co. Gilmet & Co.... Harvard & Co.. SPERC & Co. -(EMSEG & Co... First Jersey National Bank, Jersey City.. Dean & Co..... Pace & Co.--- Carothers & Clark. Dean & Davis...- F. J. Haffner & Co. Texcomco 1, , Nabank & Co... Footnotes at end of table. 3. 8 *Ashland Oil Thrift Plan. 252 298 } 1,948, 088 New York banks: Bankers Trust. Cudd & Co... Douglass & Co Atwell & Co. Kennedy & Co... Edal & Co.-.. Trude & Co. Central National Bank of Cleveland...-- Parness & Co.-.- Hamil Fund & Co. (Lexington, Ky.). ville, Ky.). Ohio). Merrill Lynch, Pierce, Fenner & Smith Inc Board of Trustees of the Retirement Sys tem of the City of Cincinnati. Individuals. Subtotal... 3, 132, 824 3, 132, 824 12.9 Totals may not add due to rounding. Common and preferred stocks, both with voting rights. 12,175,424 shares held for account of Newmont Mining Corp. Nominee for the Company's Thrift Plan and held in trust for benefit of participating employees. Percent 6.1 Percent Mobil Oil Corporation Percent Cede and Company, 7.0 In reporting its top 30 stockholders, Mobil Oil Corp. (the nominee of the New York Stock Exchange) Continental Illinois of Chicago. 3.0 included itself, with 1.4 percent of the shares of common (whose nominee is trustee of the Ashland Oil Thrift stock outstanding. Presumably it does not vote these Plan) shares it holds itself. All together the top 30 stockholders Morgan Guaranty--- 2.1 accounted for 29.0 percent of the shares outstanding. Four New York banks combined held only 3.0 percent. Only four holders held, through nominees, as much as 2 percent each of the stock of the company, three being B. OTHER INDUSTRIAL COMPANIES New York banks. In order of size they were: We come now to the largest single group in this report, Bankers Trust. the 81 industrial companies that are not oil companies. (through three nominees) Chase Manhattan. 5. 2 Of these 81, complete responses were received from 21, or (through two nominees) 26 percent. However, two of them requested that their Morgan Guaranty.. 2.9 responses be considered confidential with respect to (through four nominees) individual stockholders. Therefore there is a full tabulation Cede and Company: 2. 3 (the nominee of the New York Stock Exchange) for each of 19 companies, with the other two being in cluded in the text on partial responses. There were 14 such Seven New York banks combined accounted for 17.4 partial or incomplete responses. A full 30 companies repercent of the outstanding common stock. fused to divulge information on stockholdings on grounds Atlantic Richfield Oil Company of confidentiality. Fifteen failed to respond to Senator Metcalf's letter of inquiry; however none of the top 22 The top 30 stockholders accounted for 26.3 percent of companies of the 81 companies falls within the group the common stock outstanding of the company. Only four failing to respond. One company, Western Electric, is a holders held as much as 2 percent of the stock of the wholly owned subsidiary of American Telephone and company. They were: Telegraph Company, and is therefore excluded. PARTIAL RESPONSES Chase Manhattan Bank. 4. 5 (through four nominees) We start with the two industrial companies that furFirst National City Bank. 2. 7 nished the information requested on the understanding (through two nominees) Cities Service Company.. 2. 5 that confidentiality of individual holdings be maintained. Cede and Company 2. 3 Therefore information on the two following companies is (the nominee of the New York Stock Exchange) consolidated so that individual accounts are not disclosed. It should be noted that the Cities Service Company The Greyhound Corporation, a major conglomerate in holdings represent stock received in exchange for holdings transportation and manufacturing, had 19.5 percent of its of Richfield Oil Corporation at the time of the merger of stock held by the top 30 holders as follows: Atlantic Refining Company and the Richfield Oil Corpora Percent tion. Cities Service was under a court order to dispose of Cede and Company 8.1 (the nominee of the New York Stock Exchange) these holdings by January 3, 1973. Eight New York banks Four New York banks 2.4 accounted for a total of 11.7 percent of the common stock Six other United States banks. 4. 5 of the company. Two foreign banks. . 3 Six brokers. 2. 7 Continental Oil Company Two individuals. 1. O The top 30 stockholders accounted for 30.8 percent of United Brands Corporation reported that 69.5 percent the voting stock of the company. Four holders held two of its capital stock was held by the top 30 holders as or more percent of the stock each. Ranked by size of follows: holdings they were: Cede and Company. 20.5 Bankers Trust.. 5. 8 Chase Manhattan Bank. 8.0 (through two nominees one of which held 4.3 percent (through two nominees) of the total shares for the account of Newmont Mining Five other New York banks.. 2. 7 Corporation). Two Boston banks.- 16. 3 Cede and Company Two Chicago banks.. 3. 3 (the nominee of the New York Stock Exchange) Seven other United States banks. 8.8 Texas Commerce Bank N.A.-3.3 Two foreign banks... 1. 2 (with its nominee as trustee of the company's Thrift Merrill Lynch, Pierce, Fenner & Smith Inc. 2. 5 Plan) Three other brokers.. 1.6 Morgan Guaranty-. 2. 2 Three funds, individuals, and miscellaneous firms.-- 4. 6 (through three nominees) Nine New York banks combined held 13.3 percent. An indication of the kind of information provided by the 14 companies which gave only limited data provided is Ashland Oil, Inc. shown in the following summaries. United States Steel Corporation indicated that its Ashland Oil, in its response, listed the 14 largest ac- largest stockholder account was held by a nominee for the counts which were in the names of nominees or other Trustee of the Corporation's Savings Fund Plan for intermediary accounts. Of the 16 other accounts, it was Salaried Employees, with 10.2 percent of total shares. simply indicated that they were held by individuals, who Further no individual was reported to hold as much as 2 remain unnamed. The 30 largest stockholders account for percent of the common stock of the company. No informa22.6 percent of the voting shares of the company. Only tion on the amount held by nominees of banks and other three held more than 2 percent of the stock each. They institutions, or by other institutional investors or funds were: was disclosed. Percent Percent 4.4 |