Hearings, Reports and Prints of the Senate Committee on Government Operations

COMMITTEE ON GOVERNMENT OPERATIONS

SAM J. ERVIN, JR., North Carolina, Chairman JOHN L. MCCLELLAN, Arkansas

CHARLES H. PERCY, Illinois HENRY M. JACKSON, Washington

JACOB K. JAVITS, New York EDMUND S. MUSKIE, Maine

EDWARD J. GURNEY, Florida ABRAHAM RIBICOFF, Connecticut

WILLIAM V. ROTH, JR., Delaware
LEE METCALF, Montana

BILL BROCK, Tennessee
JAMES B. ALLEN, Alabama
LAWTON CHILES, Florida
SAM NUNN, Georgia
WALTER D. HUDDLESTON, Kentucky

ROBERT BLAND SMITH, Jr., Chief Counsel and Staff Director

ELIZABETH A. PREAST, Chief Clerk

ELI E. NOBLEMAN, Counsel

W. P. GOODWIN, Jr., Counsel
J. ROBERT VASTINE, Jr., Minority Counsel
BRIAN CONBOY, Special Counsel for the Minority

W. Thomas FOXWELL, Staff Editor

SUBCOMMITTEE ON BUDGETING, MANAGEMENT, AND EXPENDITURES

LEE METCALF, Montana, Chairman JOHN L. MCCLELLAN, Arkansas

BILL BROCK, Tennessee EDMUND S. MUSKIE, Maine

CHARLES H. PERCY, Illinois SAM NUNN, Georgia

WILLIAM V. ROTH, JR., Delaware
WALTER D. HUDDLESTON, Kentucky

Vic REINEMER, Staff Director
E. WINSLOW TURNER, Chief Counsel
ALAN CAVOTKIN, Professional Staff Member

JACK CHESSON, Counsel
LYLE RYTER, Minority Counsel
JEANNE A. MCNAUGHTON, Chief Clerk
PETER INTERMAGGIO, Research Assistant

SUBCOMMITTEE ON INTERGOVERNMENTAL RELATIONS

EDMUND S. MUSKIE, Maine, Chairman SAM J. ERVIN, JR., North Carolina

EDWARD J. GURNEY, Florida LEE METCALF, Montana

WILLIAM V. ROTH, JR., Delaware JOAN L. MCCLELLAN, Arkansas

BILL BROCK, Tennessee
LAWTON CHILES, Florida

ALVIN FROM, Staff Director
GEORGE L. BEAL, Minority Counsel

JANE S. FENDERSON, Counsel
LUCINDA T. DENNIS, Chief Clerk

CONTENTS

WITNESSES

Page

JUNE 25, 1974

Wiley, Hon. Richard E., Chairman, Federal Communications Commission,

accompanied by Wallace Johnson, Chief, Broadcast Bureau, and William

White, Common Carrier Bureau...

Bentley, Helen Delich, Chairman, Federal Maritime Commission; ac-

companied by John Ridlon, Office of General Counsel; LeRoy Fuller,

Director, Bureau of Certification and Licensing; and Andrew Weissler,

Deputy Director, Bureau of Industry Economics

JUNE 27, 1974

Smith, Hon. James E., Comptroller of the Currency; accompanied by Dean

Miller, Deputy Comptroller of the Currency for Trusts..

Solomon, Frederic, Director, Division of Supervision and Regulation,

Federal Reserve Board

Schwartz, Prof. Donald, and Susan Gross on behalf of Project on Corpo-

rate Responsibility

101

115

AUGUST 14, 1974

Harrington, Hon. Michael J., a Representative in Congress from the State

of Massachusetts...

Fischer, Norman J., chairman of the board of Medalist Industries, Inc

Lybecker, Martin E., adjunct professor of law, Georgetown University Law

Wiley, Hon. Richard E.:

A.T. & T. 1974 Report to FCC (shares of stock, common)

Table-Extent of Major Bank Holdings of Voting Stock in Com-

munications Holding Companies -

Tables:

“30 Stockholders Having Greatest Voting Power," ITT, as of

February 22, 1974.

Staff Summary of ITT ownership.
Report Submitted hy FCC:
Preliminary Summary:

American Telephone and Telegraph.
Continental Telephone Corp----
General Telephone and Electronics Corp-
RCA Corp
United Telecommunications, Inc.

Western Union Corp..

Bentley, Helen Delich:

Tables:

Information concerning Matson Navigation Company by Schedule

Number...

Letter to Senator Metcalf from Helen Delich Bentley, Chairman,

Federal Maritime Commission, July 10, 1974, regarding extent of

Federal Maritime Commission regulation on U.S.-flag shipping----

50
357

Smith, Hon. James E.:

Letter to Staff Director Vic Reinemer from Dallas County Clerk

Tom E. Ellis, December 26, 1973, regarding tax roll information..

Excerpts from Texas State Law regarding Personal Property of

Banks.

Annual Report of First City Bancorporation of Texas, Inc., Houston,

Tex., for fiscal year ending December 31, 1973..

Prepared Statement..

Solomon, Frederic:

Prepared statement.

Schwartz, Prof. Donald:

Prepared statement.

Appendix to prepared statement..

Harrington, Hon. Michael J.:

Interlocks:

Eastern Gas and Fuel Associates..

New England Electric System.---

Ropes and Gray, Attorneys, Boston..

State Street Bank, State Street Investment Corp-

Boston Edison.-

New England Gas and Electric Association.

Letter to John Nassikas, Chairman, Federal Power Commission, from

Hon. Michael J. Harrington, a Representative in Congress from the
State of Massachusetts, July 3, 1974, regarding concern over the

large number of interlocking directorates between public utilities

and banking institutions (with response and enclosure).

Memorandum to John Nassikas, Chairman, Federal Power Commis-

sion, from the General Counsel, Leo E. Forquer, July 29, 1974, on

Interlocking Directorates-Implementation of Public and Private

Interest Standards

Staff Report-Division of Corporate Regulation Securities and

Exchange Commission.

Turner, Chief Counsel E. Winslow:

Statement of Chief Counsel E. Winslow Turner regarding chart of

primary and secondary interlocks, First National Boston Corp-

Chart-Primary and Secondary Directorate Interlocks: First National

APPENDIX A-STOCKHOLDER INSPECTION OF CORPORATE RECORDS

State statutes regarding stockholders inspection rights, with covering

memorandum from Janice E. Rubin, legislative attorney, Congressional

Research Service, to Chief Counsel E. Winslow Turner..

Comparison of VEPCO and Montana Power ownership data reported to FPC

with data in company records by Staff Director, Vic Reinemer.

Law Review_articles on corporate records, excerpts from.

Tulane Law Review, June 1972 -

Connecticut Law Review, Spring 1972..

APPENDIX B—Trust DEPARTMENT INVESTMENTS AND NATURE OF

NOMINEES OF MAJOR BANKS

(Supplement to data in Appendix B, Part I)

TRUST DEPARTMENT INVESTMENTS

Morgan Guaranty Trust—Trust and Investment Division.

Bankers Trust...

Chase Investors Management Corp. and Trust Department, Chase

Manhattan Bank..

Manufacturers Hanover Trust.

Mellon Bank...

Harris Trust and Savings Bank.

First National Bank of Boston.

Chemical Bank.

Wilmington Trust (letter only, no investment disclosure)

Security Pacific National Bank (letter only, no investment disclosure).

376

380

386

389

393

397

Well Fargo Bank (letter only, no investment disclosure).

Girard Bank (letter only, no investment disclosure)...

NATURE OF NOMINEES
Letter from Morgan Guaranty Board Chairman Ellmore C. Patterson to

Chairman Metcalf, June 24, 1974, with enclosure dealing with nature

and use of various nominees -

Text of Chairman Metcalf's August 6, 1974 letter to 19 banks with assets

under management exceeding $5 billion regarding nature of individual

nominee accounts...

Responses from banks (ranked according to size of assets under manage-

ment:

Bankers Trust..

First National City Bank.

United States Trust Co.,

Chase Manhattan.

Manufacturers Hanover Trust..

Mellon Bank.

First National Bank of Chicago

Continental Illinois National Bank.

Bank of America --

Harris Trust and Savings (no response)

Wilmington Trust.

First National Bank of Boston.

Northern Trust Co.,

Chemical Bank.

National Bank of Detroit,

Wells Fargo Bank (no response)

Girard Bank.

Crocker Citizens National Bank (no response)

Security Pacific National Bank.

Letter from Chairman Metcalf to Morgan Guaranty Board Chairman

Patterson, August 9, 1974, regarding nominee accounts..

Letter from Chairman' Patterson to Chairman Metcalf, August 27, 1974,

regarding nominee accounts.--

APPENDIX C-Bank RANK AND REGULATION

Regulatory status of bank holding companies with assets over $500

million as of December 31, 1973, with accompanying letter to Staff

Director Vic Reinemer from Samuel B. Chase, Jr., adviser to the

Board of Governors, Federal Reserve System.

Deposit rank of national banks, as of December 31, 1973, as provided by

Office of the Comptroller of the Currency ..

Letter from Chairman Metcalf to Chairman Arthur F. Burns, Federal

Reserve Board, July 12, 1974, regarding collection of data dealing with

ownership and control of banks and bank holding companies.

Chairman Burns' July 17, 1974, response to Chairman Metcalf -

Letter from Chairman Metcalf to Comptroller of the Currency James

Smith, July 19, 1974, regarding collection of data dealing with ownership

and control of national banks

Comptroller of the Currency Smith's October 15 response to Chairman

Metcalf.

Additional disclosure requirements for large national banks, as of Octo-

ber 1, 1974, with accompanying press release and description of changes

issued July 31, 1974, and letter to Chairman Metcalf from Donald A.

Melbye, Special Assistant for Congressional Affairs, Office of the

Comptroller of the Currency.

Letter from William T. Dentzer, Jr., board chairman of Depository Trust,

to Staff Director Vic Reinemer regarding SICOVAM (French securities

depository system)

SICÓVAM, “La Societe Interprofessionnelle Pour La Compensation

Des Valeurs Mobilieres” January 1973 (a translation of SICOVAM's

description of its background and services, including a list of U.S. and

foreign--except French-corporations whose security issues are eligible

for SICOVAM.

Letter to Chairman Metcalf from Robert de Schietere, SICOVAM,

423

428

Letter to Staff Director Vic Reinemer from Charles W. Bisset, vice presi-

dent, First National City Bank, regarding foreign depositories, dated Page

September 5, 1974.

472

“Regulation of Bank Trust Department Investment Activities," by Martin

E. Lybecker, Yale Law Journal, vol. 82: 977, 1973.-

475

Statutes relating to powers of Federal Reserve Board, Comptroller of the

Currency and Federal Deposit Insurance Corporation to require and

enforce reporting by banks and bank holding companies -

501

Letter to Chairman Metcalf to Federal Reserve Board Chairman regard-

ing failure of certain bank holding companies in Texas to file complete

answers regarding interlocks..

519

Letter from Federal Reserve Chairman Arthur Burns to Chairman

Metcalf, September 10, 1974, regarding failure of certain bank holding

companies in Texas to file complete answers regarding interlocks... 519

APPENDIX D—Civil AERONAUTICS BOARD

“Thirty Largest Stockholders of U.S. Certificated Air Carriers and Sum-

mary of Stock Holdings of Financial Institutions,” and July 19, 1974,

transmittal letter to Chairman Metcalf from Civil Aeronautics Board

Chairman Robert D. Timm (see also appendix G, p. 934)

521

Letter and enclosures from Albert L. Rapp, vice president, Bank of New

York, to Chairman Metcalf, August 30, 1974, regarding CAB study-- 728

Letter from Chairman Metcalf, to Vice President Rapp, September 13,
1974.

729

Memorandum and enclosures prepared by SEC Division of Corporation

Finance in response to Senator Metcalf's inquiry concerning the report-

ing of ownership of stock in Eastern Air Lines, Inc., by Merrill Lynch,

Pierce, Fenner & Smith, Inc.-

729

APPENDIX E-COMMON Stock Holdings, BY INDUSTRIAL GROUP, 1972

Original summary prepared by R. M. Soldofsky and G. N. Naidu, Uni-

versity of Iowa, from data by Julius Allen, Congressional Reference

Service, in “Disclosure of Corporate Ownership, Part I, Senate Docu-

ment 93-62.":

Oil...

731

Miscellaneous industrial.

APPENDIX F-COMMISSION AND GAO REGULATIONS AND PROPOSALS

REGARDING INFORMATION COLLECTION

Final regulations, as published July 2, 1974, regarding clearance of pro-

posals by independent Federal regulatory agencies to conduct or sponsor

the collection of information

Letter to Staff Director Vic Reinemer from Assistant Comptroller General

Phillip S. Hughes with reconciliation of differences regarding com-

missions' requests for GAO clearance -

Work plan for the review of the independent Federal regulatory agencies?

information-gather activities, June 1974, GAO Office of Energy and

Special Projects..

Federal Power Commission's proposed revision of reporting requirements

regarding officerships or directorships held by directors of reporting

companies; August 29, 1974.

Securities and Exchange Commission Notice of Public Fact-Finding

Investigation in the matter of beneficial ownership, takeovers and

acquisitions by foreign and domestic persons, September 9, 1974.--

APPENDIX G-MISCELLANEOUS

Letter to Chairman Muskie, July 1, 1974, from William R. Pascoe, Landels,

Ripley & Diamond, San Francisco..

Letter to Chairman Ray Garrett, Jr., Securities and Exchange Commis-

sion, July 9, 1974, from Chairman Metcalf and Representative Les

« Previous Continue »

Books