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"A Case Study of the First Variable Annuity Program," Commercial

and Financial Chronicle, August 13, 1959. Economics (Special Text 41-158), Fort Gordon, Georgia; Civil

Affairs School, United States Army, 1959. "Private Placement Loans for Small Business," Journal of Insur

ance, October, 1959. "Accountants vs. Economists Concepts of Break-Even Analysis,"

NAA Bulletin, December, 1959. “The Size and Maturity of Direct Placements,Journal of Finance,

March, 1960. "The Performance of the College Retirement Equities Fund,"

Journal of College and University Personnel Association, February,

1960. "Improving the Evaluation of Stock and Bond Yield,” Commercial

and Financial Chronicle, April 28, 1960. "The Economic Cost of Money-Capital,” Public Utilities Fort

nightly, June, 1960. "Capital' Budgeting,Bulletin of National Society for Business

Budgeting, Spring, 1961. Comments on Life Insurance Lending to Small Business,” Journal

of Finance, May, 1961. "Growth Yields on Common Stock," Financial Analysts Journal,

Sept.-Oct., 1961. “Stock or Shares,” and “Money Order," Encyclopedia Brilannica,

1962 Edition. Restatement and Projection of Yield on Common Stock," Com

mercial and Financial Chronicle, June 20, 1963. Growth Yields on Common Stock: Theory and Tables (Iowa City,

Iowa: Bureau of Business and Economics Research, University of Iowa) 1964—with James T. Murphy. Capital Budgeting Practices in Small Manufacturing Companies,” included in Studies in the Factor Markets for Small Business Firms, edited by Dudley G. Luckett (Ames, Iowa: Iowa State Univer

sity) 1964. Lectures in Financial Management, 4th ed. (Columbia, Missouri:

Lucas Press) 1964. “IPERS—An Investment Profile," Iowa Business Digest, March,

1965. “Significance of DJIA Stock Yields As a Measure of Portfolio

Acumen,” Commercial and Financial Chronicle, September 9, 1965. “The WHAT, WHY, and HOW of Capital Budgeting for Smaller

Businesses," Iowa Business Digest, January, 1966. “A Model for Accounts Receivable Management. (A Guide to

Decision Rules for Extending Credit)” Managerial Accounting, January, 1966. “Growth Yields on Common Stock Since 1900,” Quarterly Journal of

Business and Economics, Winter, 1965. A Note on the History of Bond Tables and Growth Models Used

for Common Stock,” Journal of Finance, September, 1966. “Comments on Pension Funds as They Relate to Increased Mobility

in the Public Service," Proceedings of the Iowa Conference on Mobility in the Public Service, December 1 and 2, 1965. This conference was sponsored by the Iowa Capitol Chapter of the Ameri

can Society for Public Administration. College and University Retirement Programs: A Review of Their Ade

quacy Under Realistic Assumptions (Iowa City, Iowa: Bureau of

Business and Economic Research, University of Iowa) 1966. "Pensions and Pension Costs,Iowa Business Digest, April, 1967. “College Retirement Benefits Planning,Journal of Risk and Insur

ance, June, 1967. "Yield-Risk Measurements of the Performance of Common Stock,"

Journal of Financial and Quantitative Analysis, March, 1968. "Rights Timing," Financial Analysts Journal, August, 1967. (with

Mr. Craig R. Johnson.) "Classified Common Stock," Business Lawyer, April, 1968. Items Reprinted in Books of Readings: "Intermediate-Term Financing," Essays on Business Finance, 3rd

Revised Edition, Wilford J. Biteman, Merwin H. Waterman, and others. Reprinted in Corrigan and Ward, Financial Manage

ment-Policies and Pracices (Boston: Houghton Mifflin, 1963). "Growth Yields on Common Stock,” Financial Analysts Journal,

Sept.-Oct., 1961. Reprinted in E. Bruce Fredrickson, Frontiers of Investment Analysis (Scranton, Pa.: International Textbook Company, 1965).

"Accountants vs. Economists Concepts of Break-Even Analysis,”

NAA Bulletin, December, 1959. Reprinted in Anton and Firmin,

Contemporary 18sues in Cost Accounting (Boston: Houghton Miffin, 1966). “The Size and Maturity of Direct Placements," Journal of Finance,

March, 1960. Reprinted in Weston and Woods, Basic Financial Management (Belmont, Calif.: Wadsworth, 1967). "Risks-Premium Curves for Different Classes of Long-Term

Securities, 1950–1966,” Journal of Finance, June 1969. (with Roger Miller) Reprinted in E. Bruce Fredrickson, Frontiers of Investment Analysis, 2nd ed (Scranton, Pa.: International Text

book Co., 1971). "A Model' for Accounts Receivable Management," Managerial

Accounting, January 1966. Reprinted in Shultz, Readings in Financial Management 2nd ed. “Net Income, Financing and Rising Prices,” Quarterly Review of

Economics and Business, Autumn 1968. Reprinted in Serraino, Singhvi and Soldofsky, Prontiers of Financial Management (Cincinnati, Ohio: South-Western Publishing Co., 1971). "Yield-Risk Performance of Convertible Securities," Financial

Analysts Journal, March-April, 1971. Special Reports: The Investment Policies of the Iowa Public Employees Retirement

System-Review and Recommendations, (1964) prepared with Mr. Ernest V. Zuber. (Iowa City, Iowa: Bureau of Business and Economic Research, 1964) 151 pages. (This Report was prepared at the request of the Iowa Employment Security Com

mission which administers IPERS). More Recent Publications: “Net Income, Financing and Rising Prices, The Quarlerly Review

of Economics and Business, Autumn 1968. “Yield-Risk Performance Measurements," Financial Analysis Jour

nal, Sept.-Oct. 1968. “Nominal versus Effective Rates on Savings,” Burroughs Clearing

House, April 1969 (with Mr. Joe Lavely). "How BAI Would Measure Investment Performance,” Commercial

and Financial Chronicle, May 29, 1969. Discussion of “Private Sector Asset Management and the Effective

ness of Monetary Policy: Theory and Practice," by Hyman P. Minsky, Journal of Finance, May 1969. “Risk-Premium Curves for Different Classes of Long-Term Se

curities, 1950–1966,” Journal of Finance, June 1969 (with Roger Miller). "What's in a Bond Rating,” Journal of Financial and Quantitative

Analysis, June 1969 (with Thomas Pogue). “Convertible Preferred Stock: Renewed Life in an Old Form,"

The Business Lawyer, July 1969. "Marginal Business Loans ... Differences by Bank Size,Burroughs

Clearing House, November 1969. Ex Ante and Ex Post Yields on Bonds: Concepts and Measure

ments,' Mississippi Valley Journal of Business and Economics,

May 1970 Frontiers of Financial Management (Readings) Cincinnati: South

Western Publishing Company (1971), coedited with William

Serraino and Surendra Singhvi. "Yield-Risk Performance of Convertible Securities,” Pinancial

Analysts Journal, March-April, 1971, Institutional Holdings of Common Stock, 1900–2000: (History, Pro

jection and Interpretation) (Graduate School of Business Adminis

tration, University of Michigan, 1971). “Reply” to comment on “Risk-Premium Curves for Different

Classes of Long-Term Securities,” by Richard W. McEnally.

Both the reply and comment appeared in the Journal of Finance, September 1972. “How. Companies Manage Cash,” Financial Executive, October

1972 (with Dennis Schwartz). “Risk-Premium Curves: Empirical Evidence on Their Changing

Position-1950 to 1970,Quarterly Review of Economics and Busi

ness, Spring 1973 (with Edward Jennings). Financial Management, Cincinnati, Ohio: South-Western Publish

ing Co. (publication scheduled for January, 1974).

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Appendix E

FCC ORDERS RELATING TO MULTIPLE OWNERSHIP OF STANDARD,

FM, AND TV BROADCASTING COMPANIES

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[Before the Federal Communications Commission, Wash- unless otherwise indicated a bank holding as trustee has

ington, D.C., 20554, FCC 72–391, 75954, Docket unqualified power to vote and acquire or dispose of the No. 18751, RM-1460)

stock of the licensee company?

B. Assuming that banks execute disclaimers of inten(In the matter of amendment of sections 73.35, 79.240 and tion to control the management or policy of a broadcast

73.636 of the Commission's rules relating to multiple company as to stock held by the banks as trust investownership of standard, FM and television broadcast

ments over which they hold the power to determine how stations.)

the stock will be voted, is the 1 percent benchmark REPORT AND ORDER

specified in Sections 73.35(b), 73.240(b) and473.636(a)(2) Adopted: May 9, 1972; Released: May 11, 1972.

a reasonable and proper standard as to stock held by

banks in their trust departments, or should a higher By the Commission: Commissioner Robert E. Lee figure, such as 3 percent be permitted. concurring in the result; Commissioner Johnson dissenting 4. We shall treat with Question B first. The trust and issuing a statement in which Commissioner Bartley departments of banks are unique entities. They operate joins.

under the trust laws of their respective states and act in 1. The Commission has before it for consideration the a number of capacities in their fiduciary functions. The Notice of Proposed Rule Making and Notice of Inquiry bulk of trust business deals with the management of (FCC 69–1286, released November 25, 1969) and the trusts that are created in many ways. For instance, they comments filed in response thereto. Comments were

hold pension and profit-sharing trusts of companies which filed by the American Bankers Association (ABA), the

are created by contract. In most of these pension and petitioner in this proceeding and by American Broadcast- profit-sharing trusts, the bank has the sole power to coning Companies, Inc. (ABC); Broadcast-Plaza, Inc. trol the vote of the stock, but there are a few exceptions (Travelers' Insurance); Columbia Broadcasting System, such as a case in which the trust must invest in the Inc. (CBS); Corinthian Broadcasting Corporation (Co commercial company that sets up the trust account rinthian); General Electric Broadcasting Company, Inc. by contract. (GE); RKO General, Inc. and Time-Life Broadcast, Inc.) (RKÓ/Time-Life);Storer Broadcasting Company (Storer); PERSONAL TRUSTS AND CUSTODY ACCOUNTS Taft Broadcasting Company (Taft); and WGN Continental Broadcasting Company, Inc. (WGN).

5. The remainder of trust accounts in the trust depart

ment deal with personal trusts and custody accounts. ADMINISTRATIVE CONFERENCE HELD

Personal trusts cover executorships and administrator

ships, testamentary trusts, intervivos trusts (revocable 2. Also, on September 1, 1970, at the request of the and irrevocable) and guardianships and committees for ABA, an administrative conference was held at the offices minors and incompetents. They must be handled on an of the Commission. Senior trust officers from 4 large individual basis and the purposes of the trusts vary banks orally presented papers on various aspects of trust widely. A number of these trusts have a co-trustee, and department operations and responded to questions fol- in such cases, the bank acts as bookkeeper-adviser and lowing the presentations. The ABA also submitted, in has a partial or whole voting right. In the custody and response to the Notice of Inquiry, certain statistical data investment advisory accounts, the bank is the holder of concerning (a) interlocking directorates between the record, but the decisions are all made by the owner of banks and the licensees; and (b) loans by banks to licensees the trust assets. Thus, the bank is a bailee agent that acts in which they hold the power to vote stock held in their strictly on instructions. trust departments.

6. As to the operation of the trust accounts, the bank 3. The Notice of Proposed Rule Making solicited com- follows the terms of the trust instrument from which the ments on the following two questions:

trust was created. Testamentary trusts are created out A. Is the filing of trust agreements or abstracts thereof, of estates and are created for two principal purposes: (a) as required by Section 1.613(b) of the Commission's deferral of tax consequences and (b) to provide for the Rules, nocessary so that the Commission will have ade- testator's beneficiaries. The other types of personal trusts quate information to enable it to carry out its responsi- are created for many purposes such as care of children, bilities under the Communications Act and other Com- payment of child support, alimony or other marriage mission's Rules and policy? If such filings are necessary settlements, or some other specific purpose. In these in some cases, could they be dispensed with partly or trusts, the bank quite often is limited in its investments entirely in others, for example by the presumption that to stocks on state approved lists. If there is no approved

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RULES LIMIT HOLDINGS

list in the given jurisdiction, the banks follow the "prudent

10% BENCHMARK man” rule based on precedents contained in trust and fiduciary law. The ABA contends, in its comments and in

10. With the questions of attribution and aggregation the testimony at the administrative conference, that banks decided, and with the scope of divestiture at various peracquire and hold stocks for investment purposes and not

centages outlines, we now turn to the question of whether to control the management or policies of a company, and,

we should raise the 1% benchmark as it applies to banks in furtherance of this policy endorses the filing, by banks, under the foregoing attribution and aggregation guidelines. of disclaimers of the intent to control the managements

The ABA strongly urges that the benchmark be raised to or policies of such companies.

10%. Traveler's Insurance, RKO, Time-Life and WGN all support the 10% position urged by the ABA; GE, CBS, and ABC support a 5% position; Corinthian supports a

benchmark of at least 3%; and Taft and Storer urge an 7. The Commission rules now in force limit holdings to increase in the limitation, but do not state a specific bench1% in companies that have over 50 shareholders when mark. The rationale set forth by the ABA, is that all existsuch 1% holdings in companies exceed the maximum ing presumptions of control in statutes are at least 10% number of stations permitted by the rules. These limita- and as high as 20%. Specifically cited as a 20% standard tions are 7 AM, 7 FM and 7 TV stations. As to TV, the is the alien control ownership provision of Sections 222(d) interest in the 7 TV stations may not exceed an interest and 310(d)(4) of the Communications Act of 1934, as in 5 VHF stations. At the time of the ABA filings, based

amended. Urged as support of the 10% standard are the on a survey of the 19 largest banks,' there were violations Public Utility Holding Company Act of 1935 and the Inof the 1% rule by banks that would require divestiture of

vestment Company Act of 1940 (as supplemented by state $976,000,000 involving 25 companies. On the same basis, statutes in California and Ohio). Also urged as á 10% the divestiture required by the 19 banks at the following support are the Federal Aviation Act and the Federal percentages would be:

Deposit Insurance Corporation Act. The foregoing 10%

standards deal with presumption of control and it is urged At 3%—$256,000,000 (15 companies).

that the Commission should follow such 10% standard as a At 5%-84,000,000 (9 companies).

presumption of control. At 10%-4,000,000 (1 company).

11. The Securities Act of 1934 also set a 10% standard While we have no data beyond the survey, the foregoing for reporting of insider activities and possible corporate figures adequately indicate the scope of the problems for takeovers. However, in December, 1970, the "Corporate the purposes of our decision herein.

Takeover Act” was enacted which now requires that re8. We must also make a threshold decision concerning ports be filed, with minor exceptions when an investor attribution of ownership as well as aggregation of owner

reaches a 5% position in a company rather than the previship. As we stated in the previous proceeding in this case

ous 10% reporting benchmark. (Docket No. 15627, released June 17, 1968, 13 FCC 2d

12. Another contention of the ABA is that any bench357), we reiterate that, for the purposes of the multiple mark under 10% will have a clear depressing effect on the ownership rules, we will consider the person or entity that broadcast industry's ability to raise needed capital in the controls the right to determine how the stock is voted as institutional money markets as well as causing severe the owner of the stock. Thus, in cases in which banks have hardships in divestitures of existing holdings. The parties any right to vote the stock, irrespective of whom the bene- that urged a less than 10% benchmark based their posificial holder is, the bank will be considered the owner for tions on the same or similar positions as those urged by the purpose of the multiple ownership rules.

the ABA, but the percentages urged would have wiped out

any violations as to their own company. The summary AGGREGATION OF STOCK

thrust of all the comments is that if divestiture is ordered,

there will be an "overhang", on broadcast stock which 9. As to the question of aggregation of stock, we will would depress the stock, and that banks may well release follow our attribution rule. Therefore, in cases in which all broadcast stocks because of the administrative burdens the bank holds any right, partial or whole, to determine of attempting to comply with the multiple ownership rules. how the stock will be voted, the stock will be aggregated to the bank. For example, if the bank

BENCHMARK SHOULD BE RAISED the

possesses power to vote 3% of the shares of a given company (even though 13. The Commission has considered the questions raised it is held in 1,000 trust accounts), the bank will be con- in the Notice and the testimony submitted in the comsidered to have a 3% position in the company. The Com- ments and at the administrative conference and is of the mission has adopted aggregation of ownership of stock in opinion that the benchmark should be raised for the reatrust accounts where banks hold any right, either partial or sons urged by the parties. With rare exceptions, the banks whole, to vote for the reason that any large position in

are passive investors who manage the trusts for investment itself has the potential to be a force in management

purposes for the beneficiaries and not to control the manbecause banks generally vote the stock one way. The

agement or policies of a broadcast company. To help insure

this passive role, the Commission will require a disclaimer testimony in the comments and at the administrative conference by the trust officers clearly pointed out that

by banks that hold stock in an amount that exceeds the

reporting requirements but is less than the benchmark conthe banks (where they hold the sole power to vote) tained in the multiple ownership rules. We have examined generally vote all the stock of a given company in the the various so-called “10% control" figures cited in the same way. (Transcript, Administrative Conference, page above statutes and conclude that those standards were a 27.)

legislative determination as to a particular industry or

duty, but that they are not, ipso facto, applicable to broad* Survey taken as of April 3, 1969,

casting,

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In broadcasting, one of the greatest public interest con

APPENDIX TO REPORT AND ORDER siderations is the preservation of diversity of programming and service. Thus special caution is warranted. Based on all I. Part 1 of the Commission's Rules and Regulations the facts, we conclude that an ownership interest of 5% by is amended as follows: banks is consistent with the special caution required, will 1. In g 1.613, paragraph (b)(3) is amended to read as require some divestiture, but significantly less than at a follows: 3% benchmark, provided an appropriate disclaimer is g 1.613 Filing of contracts. filed and that the holding remains a passive one. FILING OF TRUST INSTRUMENTS

(b) 14. The first question (Question A) in the notice dealt viding for the assignment of a license or permit or (ii)

)

(3) Any agreement, document or instrument (i) prowith the need for filing of trust instruments or abstracts affecting, directly or indirectly, the ownership or voting thereof. All comments supported the tentative conclusion rights of the licensee's or permittee's stock (common or that such instruments generally served no useful purpose preferred, voting or non-voting), such as: (a) agreements and that the Commission could secure the information in

for transfer of stock; (b) instruments for the issuance of cases where such information was necessary to the Commission's processes. We agree that the perfunctory filing censee's or permittee's stock by the issuing licensee or

new stock; or (c) agreements for the acquisition of liof such trust agreements and abstracts, in the main, serve no useful purpose because the reporting on FCC Form 323 permittee corporation. Pledges, trust agreements, options (Ownership Report) will indicate the person that has the

to purchase stock and other executory agreements are power to vote the stock. As we said above and in Docket required to be filed:

Provided, however, That trust agreeNo. 15627 (the mutual fund proceeding) we shall consider unless requested specifically by the Commission. Should

ments or abstracts thereof are not required to be filed, the owner to be the person who controls the power to vote the stock. Thus, we shall generally dispense with the filing ment in lieu of the trust agreement, the licensee or per

the Commission request an abstract of the trust agreeof the trust agreements as abstracts thereof, but will retain the power to specifically request them if circum

mittee will submit the following information concerning

the trust: (1) name of trust; (2) duration of trust; (3) stances dictate.

number of shares of stock owned; (4) name of beneficial 15. The information submitted in response to the Notice of Inquiry indicated that there are at most 6 cases in

owner of stock; (5) name of record owner of stock; (6) which a bank official was a director of one broadcast

name of the party or parties who have the power to vote company and that same bank had an interest of 1% or

or control the vote of the shares; and (7) any conditions more in another broadcast company. The directorship acteristics of the trust.

on the powers of voting the stock or any unusual charby the bank official in a broadcast company would cause that individual to be subject to the multiple ownership rules if the bank's numerical holdings are the maximum II. Part 73 of the Commission's Rules and Regulations allowable by the rules. Thus, we will attribute stock held is amended as follows: by the bank to the bank official that is a director of the 1. In 8 73.35, notes 6, 7 and 8 are redesignated notes 7, broadcast company but not vice versa.

8 and 9, respectively, and new note 6 is added, the new note reading as follows:

$ 73.35 Multiple Ownership. 16. With respect to violations that exist under the revised benchmark, the data is nearly three years old, so the extent of the violations is not currently known. We

Note 6: In applying the provisions of paragraphs (a) recognize that the trust departments which hold stock in

and (b) of this section to the stockholders of a corporation violation of the rules will have to do extensive analysis which has more than 50 voting stockholders, a bank of individual trust accounts to meet legal and fiduciary holding stock through its trust department in trust duties. We therefore will give a three-year period for accounts need be considered only if such bank directly banks to bring themselves in compliance with the revised or indirectly owns 5 percent or more of the outstanding standard. After that time, any violations will be dealt voting stock: Provided, the bank files a disclaimer of with based on the circumstances present at the time. This intent to control the management or policies of the may include possible cease and desist proceedings, deferral broadcast corporation. Holdings by banks shall be agof pending applications and other such appropriate gregated if the bank has any right to determine how the remedies.

stock will be voted. 17. In view of the foregoing, and pursuant to authority contained in Sections 4(i) and 303(r) of the Communications Act of 1934, as amended, it is ordered, That effective

2. In Section 73.240, notes 6, 7 and 8 are redesignated June 23, 1972, Sections 1.613, 73.35, 73.240 and 73.636

notes 7, 8, and 9, respectively, and new note 6 is added, of the Commission's Rules and Regulations are amended

the new note reading as follows: as set forth in the attached Appendix, and the proceeding $ 73.240 Multiple ownership. is terminated. FEDERAL COMMUNICATIONS COMMISSION

Note 6: In applying the provisions of paragraphs (a) Ben F. WAPLE, Secretary.

and (b) of this section to the stockholders of a corporation Attachment: Appendix.

which has more than 50 voting stockholders, a bank holdNote: Rules changes herein will be covered by T.S. ing stock though its trust department in trust accounts I(71)-2 & the 1972 Edition of Volume III.

need be considered only if such bank directly or indirectly * See attached statement of Commissioner Johnson in which

owns 5 percent or more of the outstanding voting stock: Commissioner Bartley joins.

Provided, the bank files a disclaimer of intent to control

THREE-YEAR GRACE PERIOD

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the management or policies of the broadcast corporation. control, influence, collusive or parallel behavior where a Holdings by banks shall be aggregated if the bank has any pumber of institutions own a company, and the impact of right to determine how the stock will be voted.

institutional ownership on managerial decisions to expend

resources to serve the public. The majority is content to 3. In § 73.636, notes 6, 7 and 8 are redesignated notes rely on the assurances of non-interference offered by those 7, 8, and 9, respectively, and new note 6 is added, the new

seeking the benefits of the rule change. note eading as follows:

One looks in vain for any suggestion that the views of

the Antitrust Division of the Department of Justice were $ 73.636 Multiple ownership.

requested, despite the fact that the Division has pending

a suit against a bank's trust holdings of the stock of firms Note 6: In applying the provisions of paragraphs which compete with each other. See Business Week, (a)(1) and (a)(2) of this section to the stockholders of a

April 4, 1970, at 24. corporation which has more than 50 voting stockholders, a

One looks in vain for any discussion of the issues that bank holding stock through its trust department in trust have been raised in this proceeding by Chairman Patman accounts need be considered only if such bank directly or of the House Banking Committee, or any reference to the indirectly owns 5. percent or more of the outstanding work published by that committee. In fact, the delay in voting stock: Provided, the bank files a disclaimer of intent concluding this proceeding is principally attributable to to control the management or policies of the broadcast the concerns that Chairman Patman has expressed, and corporation. Holdings by banks shall be aggregated if the the majority has apparently been waiting in hope that bank has any right to determine how the stock will be his interest would flag. Perhaps the majority now believes voted.

it has.

ONE, THREE, FIVE PERCENT RULES

One looks in vain for any discussion of why a one Dissenting Opinion of Commissioners Johnson and

percent rule is applied to individuals, a three percent Bartley

rule to mutual funds and a five percent rule for banks.

The single unifying thread seems to have been to set the BANKS IN BROADCASTING

standards in a way that would not require much divesti(In the Matter of Amendment of Sections 79.35 .

ture. In fact, the Commission does not know if the three Broadcast Stations)

percent rule on mutual funds has been complied with.

Apparently one licensee, Corinthian, would have settled Dissenting Opinion of Commissioner Nicholas Johnson for three percent here. in which Commissioner Robert T. Bartley joins.

While many statutes are discussed, one looks in vain Monopoly, banking power, and corporate abuses in- for a discussion of a statute of great significance to bank volve issues and arguments that have raged for at least ownership questions—the Bank Holding Company Act the last 100 years in this country. There is little likelihood Amendments of 1970. 12 U.S.C. $8 1841-1850. While that I can add very much new to that dialogue.

this statute sets out a five percent standard for ownership Some-a majority of those who hold power in this coun- attribution, it does so in the form of presumptions with try—believe that criticism of corporate power is, at best, opportunity for further inquiry. exaggerated; that corporations have contributed far

One looks in vain for any discussion of problems more than they have detracted; that, indeed, they possess presented by differing geographical or market situations. a certain special wisdom that should be heeded rather Surely substantial bank ownership, even of less than five than frustrated.

percent, of several close competitors in a state or region Others-generally a minority-believe that corporate should be viewed differently from bank holdings of five control tends to produce an overemphasis upon economic, percent in widely-scattered licensees. And there is no rather than human, values; that it reduces individuality; distinction for bank ownership of network stock, despite that it makes for the relative irresponsibility of anonym- the existence of a highly concentrated market where ity; and that it makes possible the abuse of power by competitors meet each other in a variety of contexts. those heading such institutions.

Nor does there appear to be any recognition that specific

factual situations may require special Commission inquiry SURPRISING CONCLUSION

on its own motion-in fact it is not clear that the ComToday the Commission reaches the rather surprising the holdings are less than five percent.

mission will know about bank ownership situations where conclusion that bank ownership of broadcast licenses in conflict with FCC multiple ownership rules is less impor

It may be that there are no potential problems with tant than individual ownership also in conflict. I dissent.

treating banks more favorably than mutual funds or Present Commission rules set certain ownership stand- individuals. But there has been no demonstration on this ards for the holding of broadcast stations. For widely held record to justify a change in rules to satisfy banks and entities, ownership attribution is made when a person

bank-held broadcasters—a change adopted only to avoid holds one percent, or a mutual fund owns three percent.

divestiture. Now for banks it will be five percent. Because I believe those seeking relaxation of the Commission rules have Before the Federal Communications Commission, Washtotally failed to show how the public interest will be

ington, D.C., FCC 72–525, 79407, File No.BTC-6682] improved, I cannot support the change the majority adopts.

(In the Matter of Cris-Craft Industries, Inc. (Transferor) and One looks in vain in the majority document for any Metromedia, Inc. (Transferee) For Transfer of control discussion of the important issues concerning institutional of WTCN Television, Inc., Licensee of Station WTCNownership of the stock of other companies-questions of TV, Minneapolis, Minn.)

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