RECOMMENDATIONS We at the Center for Science in the Public Interest recommend the following: a) Enactment of legislation that would prohibit: (1) Directors of one oil company which has capital surplus and undivided profits aggregating more than $50,000,000 acting as officers of another oil company; (2) interlocks of oil companies with potential competitors; (3) vertical interlocks of oil companies between buyers and sellers including industrial firms and various kinds of financial institutions providing lending or investment services; and (4) indirect interlocks of oil companies with other profitmaking corporations. b) Divestiture of producing facilities by companies which operate refineries. No company operating a petroleum refinery should at the same time own or control any interest of any nature whatsoever, directly or through any affiliate, in any company engaged in the exploration for, development of, or production of crude oil or other liquid hydrocarbons. c) Divestiture of marketing facilities by companies which operate refineries. No company operating a refinery, other than an independent refiner, should at the same time own or control any interest of any nature whatsoever, directly or through any affiliate, in any company engaged in the marketing of finished products, provided however any such company may maintain and operate facilities for the sale and delivery of such finished products directly from the refinery. d) Divestiture of pipeline facilities by refineries and producers. The producers of crude and refined petroleum products should not own the pipelines used for transporting petroleum products. e) Congressional hearings on the influences of indirect interlocking directorates with various non-profit institutions which depend on fuel and petroleum supplies for their growth and development. Hidden advantages from major oil connections to one or other of these institutions might call into question the credibility of the national energy allotment program. Note: A number of related recommendations are listed in CSPI's report, "Big Oil: A Citizen's Factbook on the Major Oil Companies." Note: Recommendations regarding new legislation have been made at the explicit invitation of Congressmen. 34-175 74 pt. 5-6 SUMMARY 51 From the data listed in the preceding section we find that there are 460 interlocking directorates and advisory committee connections of the eighteen largest oil companies. a) Banks: 132 interlocks with banks and other financial institutions including Chemical Bank of New York, Chase Manhattan, Morgan Guaranty Trust, Bank of America, First National City Bank, Mellon b) Insurance: 31 interlocks with insurance companies including Equitable Life, Prudential Insurance of America, New York Life, Metropolitan, Mutual Life, Insurance Company of North America and American Atlas Life Insurance. c) Utilities: 12 interlocks with 11 utilities including Northwestern Bell, Consolidated Edison, Illinois Power, Pacific Telephone and Telegraph, Commonwealth Edison, Central and Southwest, American Telephone and Telegraph, Consolidated Edison and Southern California Edison. d) Transportation: 15 interlocks with transportation corporations including Toledo, Peoria and Western Railroad, United Aircraft of Canada, Pan American World Airways, Southern Pacific, Los Angeles and Salt Lake Railroad and Union Pacific Railroad. e) Education: 46 affiliations with educational institutions including the University of Texas, University of Pittsburgh, Carnegie Mellon, University of Chicago, Columbia, Rensselaer Polytechnic, Trinity College, California Institute of Technology, Kansas University, Colorado College, Stanford University, University of Pennsylvania and University of the South at Sewanee. 52 f) Manufacturing and Distribution: 224 interlocks with manu facturing and distributing corporations including IBM, Caterpillar Tractor, |