Percent 6. 7 5. 8 Gulf, Mobile and Ohio Railroad C. OTHER TRANSPORTATION COMPANIES The 30 top holders of this railroad accounted for 52.0 Of the 14 other transportation companies among the percent of the outstanding voting stock of the company, top 50 by operating revenues in 1971, only two supplied the total information requested, one, Seatrain Lines, a with four holders having 2 or more percent each of the shipping company, and the other, Spector Industries, a voting stock of the company. None are New York banks. trucking company. Six freight companies, Consolidated . The four are: Freightways, Inc., Roadway Express, Inc., Yellow Freight System, Inc., McLean Trucking Company, the Bekins Chicago Title and Trust Company. 18. 8 Company, and Transcon Lines gave the names of the 10 Continental Illinois National Bank shareholders who had the highest voting power in their (through four nominees) companies, as required to be reported to the Interstate Merrill Lynch, Pierce, Fenner & Smith Inc.. H. Hentz and Company Commerce Commission. Pacific Intermountain Express 2. 1 reported that all of its shares were now owned by Three New York banks combined held 3.2 percent of International Utilities of the U.S., Inc., a Delaware corthe stock of the company. poration. The American President Lines reported that From this survey it can be seen that New York banks, its voting stock and the Signal Companies about 48 Natomas Company is the beneficial owner of 51 percent of headed by Chase Manhattan, were predominant holders percent, leaving the remaining 1 percent divided among in the case of three of the railroads, brokers, directly and about 150 individuals. Four, Leaseway Transportation, through Cede and Company in four cases, and other American Export Industries, National City Lines, and railroads or transportation companies in six cases. In the Associated Transport, did not respond. other two cases, no single type of holder appeared to pre- cussed above, stock ownership in the two companies con In contrast to the airline and railroad companies disdominate. Chase Manhattan was the top stockholder of sidered here, Seatrain Lines and Spector Industries, is four railroads and the top New York bank in the case much more heavily concentrated among specific individof four others as well. uals and less so among financial institutions. New York banks: (Pitt & Co.. Bankers Trust.... Rothmayer & Co. Cudd & Co. Kane & Co. (Birney & Co. Lerche & Co.. Hare & Co.-- Atwell & Co... Special & Co..... Olen & Co... Nadart & Co.--.-. Crocker National Bank (Los Angeles).--. Kemp & Co.--. Merrill Lynch, Pierce, Fenner & Smith Inc. Baco. Loeb Rhoades & Co... Howard M. Pack Foundation.. Table 11.—TRANSPORTATION_Continued Continued Rank among Total Total shares held in 30 largest transportation shares of accounts companies by common operating stock out Ву Consolirevenues in standing individual dated by 1971 Percent Nominees institution of total 1 (36).. SEATRAIN LINES—Continued Individuals: 3, 631, 237 2, 015, 653 Samuel Kahn. 1, 415, 646 Norman Kahn.. 959, 571 Leonard Kahn. 688, 810 Warren Pack 377, 400 Dorothy Pack, Trustee FBO Elizabeth 90, 000 Pack. 9, 507, 099 69. 4 Dorothy Pack, Trustee FBO Ellen Pack.. 90, 000 90, 000 90, 000 Susan Kahn. 58, 782 10, 014, 310 10,014, 310 73. 1 1, 047, 813 754, 409 754, 409 72.0 New York Stock Exchange Cede & Co.-.-. 158, 144 158, 144 15. 1 Bankers Trust Egger & Co. 2, 720 2, 720 :3 2, 720 2, 720 3 Milk & Co.--- 4,000 4, 000 Spel & Co.---- 41, 600 41, 600 4.0 Community National Bank and Trust, Conaba & Co.Bal Harbour, Fla. 8, 297 :8 16, 376 1. 6 18, 895 18, 895 1.8 2, 635 Citizens Securities. 2, 635 .3 Individuals: 2,500 2, 500 2 137, 500 94, 500 H. E. Baker 45, 000 J. Pritzker... 37, 250 F. I. Dupont. 35, 500 29, 915 24, 735 16, 800 13, 500 490, 942 46. 9 9, 600 8, 800 James Stanhaus. 7, 500 W.J. Friedman. 6, 500 J. S. Ruscetta... 4, 800 T. F. Kearney 4,019 R. Gerling-- 2, 506 Miscellaneous: 2, 417 Polish Roman Catholic Union... 3,000 Spector Freight System, Inc. 2, 900 Speedy Equipment Co.. 8, 300 2, 400 593, 545 56.6 1 Totals may not add due to rounding. Excludes 3,611,782 non-voting shares held by Transeastern Totals are therefore of 29 companies instead of 30. Associates, Inc., a wholly owned subsidiary of Seatrain Lines, Inc. Percent Seatrain Lines Four New York banks combined held 11.0 percent, the two largest combined accounting for 7.5 percent. The top 29 stockholders accounted for 88.3 percent of the stock, by far most of it held by individuals. Of the Spector Industries nine holders with 2 percent or more of the total, six, including the five largest, are individuals, two are New The pattern of ownership among the top 30 stockYork banks and one is Cede and Company, nominee of holders is very similar to that for Seatrain Lines. The 30 the New York Stock Exchange. Ranked in order they are: top holders accounted for 72.0 percent of the common stock outstanding. Of the nine holders of 2 percent or more Howard M. Pack, president of Seatrain Lines.. 26. 5 each of the stock, seven are individuals, one is Cede and Joseph Kahn, chairman of the board of Seatrain Lines... 14.9 Samuel Kahn, executive vice president of Seatrain Lines - 10. 3 Company, and one is a bank. In order of size, these are: Norman Kahn, vice chairman and vice president of Percent Seatrain Lines. 7.0 15. 1 Leonard Kahn. 5. O (the nominee of the New York Stock Exchange) Bank of New York. 4.4 W. Stanhaus, chairman and president of Spector Indus(through three nominees) tries. 13, 1 Cede and Company: 4. 2 9. 0 (the nominee of the New York Stock Exchange) S. C. Bergman. 4. 3 Chase Manhattan Bank. 3. 1 4.0 (through two nominees) H. E. Baker. 3.6 Warren Pack.... 2.8 3. 4 F. I. Dupont. 2.9 C. Vernon, director of Spector Industries. 2. 4 * One of the 30 largest stockholders, Transeastern Associates, Inc., is a wholly owned subsidiary whose stockholdings it is not entitled Only one New York bank was among the top 30 holders to vote and which are therefore excluded from this tabulation. with 0.3 percent of total common stock of the company. Chapter VI PUBLIC UTILITIES Senator Metcalf's letter requesting the names of their 30 (five stockholders listed), the Southern Company (one largest shareholders went to the 51 largest public utilities stockholder listed), New England Electric System (three in 1970 based on assets. Five of these are in the com- stockholders listed) and Central and Southwest Corporamunications field (American Telephone and Telegraph, tion (five stockholders listed). General Telephone and Electronics, Continental Tele- The Columbia Gas System did not identify its major phone, United Telecommunications--formerly. United stockholders by name but did provide some description Utilities, Inc.-and Western Union). The remaining. 46 of the kinds of institutions and individuals that comprise are in electric power, natural gas, pipelines, or a combina the top 30 stockholders. Thus, the largest with 3.2 percent tion of more than one of those three businesses. of the stock is the nominee for the trustee under the Twenty companies, including four of the five in com thrift plan of the company, second is a brokerage firm, munications utilities, responded in full to Senator Metcalf's third is Cede and Company. The 27 others are insurance letter. companies, banks, mutual funds, and investment PARTIAL RESPONSE corporations. Detroit Edison listed its top 30 stockholders, but failed Twenty-two gave more limited information, 10 listing to indicate the number of shares in each of these 30 stockonly the 10 largest stockholders as required by the Fed holders' accounts. eral Power Commission, and four listing those with Middle South Utilities disclosed only that the largest more than 1 percent of the shares, as required to be beneficial holding by any stockholder (not identified) is reported to the Securities and Exchange Commission less than 142 percent and that all other beneficial holdings under the Public Utility Holding Company Act of 1935. are less than 1 percent. The 10 companies which specifically limited their stock- Northern Natural Gas supplied more information, holder information to the 10 largest were: specifically the names of the 20 largest common stock holders of record on December 31, 1971, plus an indication Consolidated Edison (listed 11 largest shareholders) of the type of holder for the 21st through the 30th largest Pacific Gas and Electric common stockholders, which included one mutual fund, Commonwealth Edison one insurance company, and eight nominees. Northern States Power Company declined to list the names of the 30 largest stockholders and the amount of their stockholdings without specific authority of the stockUnion Electric holder. As a result it listed 17 stockholders by name; for Panhandle Eastern Pipe Line the other 13 it indicated that eight were nominees for Wisconsin Electric Power Illinois Power trust departments of national banks, and one each a nominee for a brokerage firm, nominee for mutual fund, The Philadelphia Electric Company provided, beyond brokerage firm, nominee for trust, and nominee for bank the highest 10, the names of seven additional holders Pacific Lighting indicated only that the top 30 stock(with ranks of 21, 23, and 26-30) who gave permission holders held about 22 percent of the company's shares, and to disclose the number of their shares. The remaining 13 that the largest shareholder of record is the Pacific Lightdid not give such permission. ing Corporation Employees Retirement Savings Plan Carolina Power and Light Company indicated, beyond with 5.5 percent of the outstanding shares. the top 10 stockholders, that the next 20 in the aggregate CONFIDENTIALITY AND NO RESPONSE owned 11.6 percent of all shares outstanding, compared to 19.7 percent for the 10 shown. Six companies (Southern California Edison, Consumers Companies which listed only all persons holding 1 Power, United Telecommunications, Peoples Gas, Ohio percent or more of the company's stock, as required for Edison, and Gulf State Utilities) refused any stockholder holding companies by the Securities and Exchange Com information on the grounds of confidentiality. Three mission under the Public Utility Holding Company companies (General Public Utilities, Duke Power, and Act of 1935, included Consolidated Natural Gas Company Metcall's leiter. Houston Lighting and Power) did not reply to Senator 1 These are the 50 public utilities listed in the Fortune list of We turn now to the 20 utilities (four in communications largest companies plus General Telephone and Electronics, which and 16 in electric and gas energy) which responded fully was until 1972 listed among industrials. to the request for their 30 largest stockholders. 29-553 0.74 - 7 |