Y 4.F 49:St 6/6

EMPLOYEE STOCK OWNERSHIP PLANS AND
GENERAL STOCK OWNERSHIP TRUSTS

A BILL TO AMEND THE INTERNAL REVENUE CODE OF 1954,
AND THE TAX REDUCTION ACT OF 1975, WITH RESPECT TO
EMPLOYEE STOCK OWNERSHIP PLANS

S. 3223

A BILL TO AMEND THE INTERNAL REVENUE CODE OF 1954,
TO PROVIDE TAX INCENTIVES FOR THE ESTABLISHMENT OF
GENERAL STOCK OWNERSHIP PLANS

H.R. 13882

A BILL TO AMEND THE INTERNAL REVENUE CODE OF 1954,
AND THE TAX REDUCTION ACT OF 1975, WITH RESPECT TO
EMPLOYEE STOCK OWNERSHIP PLANS

EMPLOYEE STOCK OWNERSHIP PLANS AND GENERAL STOCK OWNERSHIP TRUSTS

HEARINGS

BEFORE THE

COMMITTEE ON FINANCE

UNITED STATES SENATE

NINETY-FIFTH CONGRESS

SECOND SESSION

ON

S. 3241

A BILL TO AMEND THE INTERNAL REVENUE CODE OF 1954, AND THE TAX REDUCTION ACT OF 1975, WITH RESPECT TO EMPLOYEE STOCK OWNERSHIP PLANS

S. 3223

A BILL TO AMEND THE INTERNAL REVENUE CODE OF 1954, TO PROVIDE TAX INCENTIVES FOR THE ESTABLISHMENT OF GENERAL STOCK OWNERSHIP PLANS

H.R. 13882

A BILL TO AMEND THE INTERNAL REVENUE CODE OF 1954, AND THE TAX REDUCTION ACT OF 1975, WITH RESPECT TO EMPLOYEE STOCK OWNERSHIP PLANS

JULY 19 AND 20, 1978

Printed for the use of the Committee on Finance

U.S. GOVERNMENT PRINTING OFFICE

33-902 O

WASHINGTON: 1978

For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402

CONTENTS

ADMINISTRATION WITNESSES

Evans, Stuart J., Director of Procurement, National Aeronautics and

Space Administration

Page

258

Lubick, Hon. Donald, Deputy Secretary of the Treasury for Tax Policy --
Neuman, Frederick, Director, Defense Contract Audit Agency.
Strauss, Hon. Robert S., Special Counselor on Inflation__.
Trask, John M., Jr., Associate Administrator for Finance and Investment,
Small Business Administration____

170

271

164

286

PUBLIC WITNESSES

Boulis, J. R., chairman and president, South Bend Lathe-

93

Buxton, Joseph T., III, executive director, National Dividend Founda-

tion

156

Conrad, Jonathan M., First Pennsylvania Bank, N.A.

223

Cunningham, Kenneth R., chairman of the board of the Metropolitan Con-
tract Services, Inc----

232

Denton, William, vice president for industrial relations, Southern Pacific

Co

220

Dow Chemical Co., Glenn W. White, director of tax department__
Employee Stock Ownership Council of America, Ronald L. Ludwig, Esq.,
counsel

102

122

First Pennsylvania Bank, N.A., Jonathan M. Conrad_

Gates, Jeffrey R., Hewitt Associates_

223

135

Grady, Jack, president, Juice Bowl Products, Inc___

112

Hamrin, Robert, fellow, the Rockefeller Foundation___
Hewitt Associates, Jeffrey R. Gates___.

213

135

Juice Bowl Products, Inc., Jack Grady, president_.
Kelso, Louis O., Kelso & Co., Inc.

112

153

Kostmayer, Hon. Peter H., a Representative in Congress from the State of
New York___

203

Lowe's Cos., Inc., Robert L. Strickland_

72

Ludwig, Ronald L., Esq., counsel for the Employee Stock Ownership Coun-
cil of America__

122

Lundine, Hon. Stanley N., a Representative in Congress from the State of
New York___

204

McHugh, Hon. Matthew F., a Representative in Congress from the State of
New York_.

205

Mattox, Hon. Jim, a Representative in Congress from the State of Texas__

Metropolitan Contract Services, Inc.:

276

Kenneth R. Cunningham, chairman of the board..

David Personette, executive vice president___

232

235

National Dividend Foundation, Joseph T. Buxton III, executive director___

Personette, David, executive vice president, Metropolitan Contract Serv-

ices, Inc____

156

235

Rice, Jim, president, Oklahoma Aerotronics, Inc.

Rockefeller Foundation, Robert Hamrin, fellow_

279

213

Sears, Roebuck & Co., A. Dean Smith, president___

61

South Bend Lathe, J. R. Boulis, chairman and president__

93

Southern Pacific Co., William Denton, vice president for industrial rela-

tions

220

Strickland, Robert L., Lowe's Cos., Inc___

72

Swift, A. Dean, president, Sears, Roebuck & Co____

61