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The extent of response to the request of Senator Metcalf
VOTING STOCK for the holdings of the 30 largest stockholders of each of these 324 companies can be indicated as follows:
In the great majority of cases, the common stock as reported was the voting stock of the company. Where pre
ferred or otherwise designated stock also had voting As percent rights, they are included in the attached tabulations. In Number
instances where treasury stock was included by respond
ents, this was noted and deducted from reported totals, Total response.
27.5 Partial information supplied.
since treasury stock has no voting rights attached to it. 74
22. 8 Subsidiary companies.
(Treasury stock is stock of a corporation that has been Reply received but no relevant data
authorized, issued, outstanding, and subsequently resupplied.
25. 6 acquired for management disposition. The latter usually is No reply received..
effected by purchase or by donation.) Total..
The report that follows concentrates on the 89 full The report is divided into the following industry groups: replies. For these replies a tabulation has been prepared industrial companies (divided into petroleum and all indicating the number and percentage of shares held by the other), transportation (divided into airlines, railroads, and top 30 stockholders, their names and amounts of stock held all other), public utilities (divided into communications by each; where there are more than one nominee of banks and electric and gas utilities), retailing firms, banks, and or other financial institutions, these have been consoli- insurance. In terms of response, table 2 provides the same dated. In addition, an indication of the nature of other information as the aggregate information shown above for responses (or extent of nonresponse) is also supplied. all 324 companies contacted. Table 2-SUMMARY OF INFORMATION SUPPLIED IN RESPONSE TO REQUEST FOR 30 LARGEST
From this table the variations in extent and kind of response by industrial grouping, can be seen. Reasons for the variations are considered below.
The most partial reporting (giving information on
several holders, but not the full 30) was done by FULLY REPORTING COMPANIES
electric and gas utilities and miscellaneous transportation Among fully reporting companies, the best record companies, where there are some Federal reporting goes to communications utilities, railroads, and airlines. requirements for major stockholdings, but no requirement These are the only groups where 50 percent or more pro
for the largest 30. vided all of the information requested. The poorest Conspicuous among groups which responded, but record goes to insurance companies, miscellaneous trans- refused to give any data revealing particular stockbólders, portation companies, retail companies, and banks. were banks and industrial companies. Highest among groups which failed to respond to Senator Metcalf's reporting companies. The fourth is a general summary inquiry were retail companies.
of the data in the main section of the report, specifically Highlights of the tabulations which follow, can be indicating the percentage of outstanding voting stock of found in the four following summary tables. The first each of the 89 fully reporting companies held (1) by the summarizes the identities of the largest stockholder of all the companies responding which supplied this informa- 30 largest holders, (2) by all New York banks combined tion—132 in all. The second and third give data on all that were among the 30 largest holders, and (3) the largest holders of 2 percent or more of the stock of the 89 fully single holder.
29-553 0.74 - 3
In this part of the report the information gleaned from Manhattan, the top stockholder in 21 companies. In each the responses to Senator Metcalf's letter is summarized case the percentage held by the top stockholder of outin four tables. The more detailed information follows under standing voting stock (usually common stock) is indicated. the six industry headings already referred to: industrial The companies are arranged in the industry sequence corporations, transportation, public utilities, retail trade, followed in the rest of the report. banks, and insurance.
The second part lists first the 14 cases in which a com
pany's own stock or savings plan is the largest stockholder PRECAUTIONARY NOTE
of the particular company; second, the 13 banks which
were the largest stockholder of only one of the 132 reportA precautionary note needs to be stressed at the outset, ing companies; third, the eight nonfinancial corporations one which applies to all of the tables in this report. The that were the top stockholder of reporting companies; data showing holdings by trust departments of banks and fourth, the six individuals that were the top stockholder other financial institutions indicate aggregate holdings of reporting companies; fifth, the two funds which were without any indication as to the voting power inherent in the top stockholder of reporting companies; and sixth, such holdings. These holdings will include some with full the two other financial institutions that were the top voting authority, some with contingent or partial voting stockholder of reporting companies. Where a bank is power, and some with no voting rights.'
named as its own leading stockholder, it should be noted This precaution is especially important in interpretation that this refers to stock held within the trust department of data on Cede and Company, the nominee of the New of the bank but does not indicate that the bank itself York Stock Exchange through its subsidiary corporation, exercises voting rights of such stock. the Depository Trust Company. Under the rules of the
Tables 4 and 5 provide an overview of the extent to stock exchange, Cede and Company only votes stock on which major institutions hold 2 or more percent of the the instruction of member firms belonging to the De- stock of the 89 reporting companies. Table 4 includes all pository Trust Company in whose name the stock is those institutional investors which held 2 or more percent registered, even though there is no legal restriction to of the voting stock of three or more of the 89 reporting Cede's right to vote stock it holds. Thus the fact that companies. The totals are broken down into the industry Cede and Company is the largest, or a sizeable, holder of
categories which are utilized in this report. stock in a given company should not be interpreted as Thus it can be seen that, based on returns from 89 giving it actual voting strength in the stock of such a corporations, Cede and Company held 2 or more percent company.
of 55 out of these companies, followed by Chase Man[For further discussion of Cede and Company and the hattan with 2 percent or more of 46 companies, Morgan Depository Trust Company, see Appendix C, p. 335. Guaranty with 2 percent or more of 29 companies, and
The first table of this section, Table 3, provides a list of First National City Bank with 2 percent or more of 28 the single largest stockholder of each company reported by companies. Twenty-four institutional investors held 2 any of the respondents supplying this information. Since percent or more of at least three companies among the many of the respondents who did not supply a list of the 89 reporting companies. These include (besides Cede and 30 largest stockholders did indicate the identity of the Company, the nominee of the New York Stock Exchange) largest one, it is possible in this table to provide informa- eight New York banks, three Boston banks, two Chicago tion on 132 companies. This is the only table where there banks, two Minneapolis banks, six other banks, and two is this broad a company coverage.
New York brokerage houses.
TOP INSTITUTIONAL HOLDERS The table is arranged in two parts. The first includes all More detail is shown in Table 5 which takes the top eight instances in which a holder is the top stockholder in more institutional holders of this table, those with 2 percent or than one company; this part is arranged with the holders more of more than 10 out of the 89 reporting companies, in the order of the number of companies in which they and shows the actual percentages of total voting stock were the top stockholder, starting with Cede and Com- held by these eight holders in specific companies, arranged pany, the nominee of the New York Stock Exchange, the in the same sequence followed throughout the main body largest holder in 36 companies, followed second by Chase of the report, that is by industry group and within the 1 Part II of this document deals with stock in which institutional
group by size of company. Thus it can be seen, for example, investors have sole voting rights. Part III deals with stock in which
that Cede and Company, among the 55 companies in which institutional investors have sole or partial voting rights.
it held 2 percent or more of the voting stock, held 32.6 (21)
percent of the stock of the Chicago Milwaukee Corporation; 21.3 percent of the stock of Pacific Southwestern Airlines; 20.5 percent of the stock of United Brands; and 15 or more percent of the stock of five other companies. Similarly it can be seen that Chase Manhattan Bank, among the 46 companies in which it held 2 or more percent of the stock, includes five airlines, in four of which its holdings ranked between 9.0 and 6.9 percent; eight railroads, in six of which its holdings ranked between 8.3 and 5.3 percent; and 17 industrial companies, in five of which its holdings exceeded 5 percent of the company's outstanding stock.
5. 5 3. 8
3. 9 5. 4 6. 9 3. O 5. 3 5. 9 4. 2 3. 8 6. 1 6. 9 3. 3 13. 6 18 7 4. 1
Table 6 (p.26) is a more general summary table of the information supplied by the 89 respondents that provided information on their top 30 stockholders of record. The information is arranged by industry division and subdivision (e.g., industrial corporations are divided into oil companies and all other industrial companies) and within each division companies are arranged by size. Five columns of data are provided as follows: (1) the percentage of total voting stock held by 30 top stockholders; (2) the percentage of total voting stock held by New York banks that are among the 30 top stockholders; (3) the percentage of total voting stock held by the single largest stockholder; this is divided into three groups: (a) where the largest stockholder is a New York bank; in this case the particular bank is indicated by a letter symbol; (6) where the largest stockholder is Cede and Company, the nominee of the New York Stock Exchange; and (c) where the largest stockholder is neither a New York bank nor Cede and Company. All of the data in this table are taken from the individual tabulations and text which comprise the following, and main, section of this report. Table 3.-THE LARGEST STOCKHOLDER OF
132 COMPANIES IN 1972 AS REPORTED BY RESPONDENTS TO SENATOR METCALF'S LETTER
Cede & Co.' (36)—Continued
American Electric Power.
Charter N.Y. Bank..
First National Bank of Dallas. Morgan Guaranty (4)
Chicago Rock Island & Pacific ?
Chesapeake & Ohio
Public Service Electric & Gas
Texas Eastern Transmission. Footnotes at end of table, p. 23.
4. 5 3. 6 4, 2 5. 2 9. 0 7. 4 8. 3 9. O 6. 9 8. 4 6. 7 8.3 6. 2 6. 4 8.0 1. 1 2. 9 5. 1 3.6 10. 5
I. HOLDERS Which ARE THE LARGEST STOCKHOLDER OF MORE
Than ONE COMPANY
2.4 6. 1 10. 9 5. 6 7. 5 5. 1 7.0
7. 0 1. 5 6. 2 6. O
6. 1 5. 8 5. 7
77. 4 4. 8 5.4
Cede & Co. (36)
7.0 12. 1 39. O
7. 2 8. 1 20. 5
5. 5 10.6 15. 0 19. 0 15. 3 17.0 21. 3 10.6 18. 9 32. 6 13. 9
7. 7 15. 1
7. 1 2.6