6 The listing of the top 30 stockholders submitted by the carriers was reviewed in several ways. First, the list was screened to be sure that Cede and Company, which is a stock clearing corporation, was not listed as a stockholder. In those few lists that contained a stockholding for Cede and Company the air carrier was requested to review his tabulation and eliminate Cede and Company and distribute the shares to the appropriate stockholder. We reviewed all lists to determine that no nominee was listed separately, but that the principal's holding contained the nominees' holdings. Further, we compared all stockholders shown on the carrier's list as having more than 5 percent of the carrier's stock to CAB filings of stockholdings. This procedure helped us to determine that all 5 percent stockholders who reported to the CAB were included in the carrier's lists. Some differences may exist due to the fact that Part 245 submissions require ownership reports from holders of more than 5 percent of any class of capital stock. The top 30 list required that percentage holdings be calculated on the basis of total outstanding shares. Due to different reporting dates, there are differences in percentages of outstanding shares held. In addition, the carriers' top 30 stockholders lists were compared to a Cede and Company listing dated March 29, 1974 and no major discrepancies were found. It should be noted that several air carriers stated that the procedure described above and followed by the carriers did not insure that we had a list of the top 30 stockholders because stock held in street names has not been assigned to the real owner's account. We agree with this observation. At present, however, there is no consistent method for the carriers to identify the true owners of the stock held in street names. It should be noted that Braniff, United, and Flying Tiger are wholly owned subsidiaries of parent holding companies. The information concerning stockholdings for these carriers is therefore given with respect to the holding companies since the air carrier contributes a major portion of the holding company's revenues. Preferred shares have been included in the total outstanding shares for those carriers which reported them as having voting rights. Individual percentages shown in the appendices may not add to the total percentages due to rounding. 1/ The totals for the institutions are the sum of shares held in those carriers where the institution is included among the top 30 stockholders. NOTE: The shares held by the 17 top stockholders among the financial institutions plus the shares held by the other 55 financial institutions reconcile to the total shown on Appendix A. |