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stock of a company when an individual is limited to 1 percent and regulated investment companies are limited to 3 percent? Where did this magic figure of 5 percent come from?
Mr. WILEY. Mr. Turner, I do feel there may be a case made for some consistency in this area. As I mentioned in our statement, we have 1, 3, 5 percent, what have you. This is something the Commission is going to look into and determine whether or not this should be the same for all institutional investors, whether there should be a differentiation between them. I don't think there is any magic to 5 percent. As you know the mutual funds have petitioned for 10 percent.
Mr. TURNER. Didn't you arrive at the 5-percent figure so you could give the banks an opportunity to unload what they had without disturbing the stock market?
Mr. WILEY. As I say, that was not the basis on which I cast my vote in this area. It was the suggestion, as you know, that some Commissioners thought that had some part in what the Commission was doing. But the basis on which I did it was the passive investment status a bank.
Mr. TURNER. So you are considering the possibilities of reducing the percentage or making them uniform?
Mr. WILEY. We are considering the pending petitions that I mentioned in my statement. I don't know that there is any contemplated action by the Commission to reduce the 5-percent figure for banks. But we do have petitions pending and the Commission has to be responsive for insurance companies and mutual funds.
Senator METCALF. I understand it is difficult to install the computers, it is difficult to get the necessary material and so forth. The Interstate Commerce Commission has found that they can turn to the Nation's largest railroads and say, "You tell us, we are not going to run this through our computers, you aggregate the various nominees and street names."
The CAB has done the same for the airlines. Why can't you pass a rule and say A.T. & T. will tell you and they will aggregate the various nominees and street names and they will tell us or give us a true picture of the 30 largest stockholders? You don't need any computer at all to do that.
Mr. WILEY. Mr. Chairman, as I mentioned, that is one of the very things we are looking into in preparation of this rule making in the common carrier are and the Broadcast Bureau has given considerable consideration to precisely the type of action that you contemplate and mention.
Mr. Johnson just pointed out that some companies are substantially complying with that type of action, on initial grants.
Senator METCALF. Are they complying on their own volution?
Senator METCALF. You have asked them for it?
Mr. JOHNSON. Yes. That is only where they have an application before us and we use that as a vehicle to get the additional information. Senator METCALF. It seems to me that it is going to be difficult to go through so many complex relationships as those with which you. are involved. At the same time you can require better and more
accurate and more specific reporting and disclosure from the companies you regulate so that the information that you have about those companies is more accurate than absolutely useless information that you have obtained finding a whole lot of street names and a couple of Swiss banks as the owner of A.T. & T. or I.T. & T.
Mr. WILEY. I Concur that some of the information may be useless, but I also agree there are improvements as you pointed out, Mr. Chairman, that are needed.
Senator METCALF. It doesn't do any good at all to find out that Kane and Co. or Egger and Co. or Kabo and Co. or, you know, hundreds of others own so many share of stock. They don't have a telephone. They don't have a post office address. The only real benefit is to go behind the street name and find out that that means Morgan Guaranty or Chase Manhattan or some other organization.
I can't see how you can exercise your regulatory power when you look down there and find 30 names, none of which represent any actual corporation or any person.
I respect the difficulties you have, Mr. Chairman, and I certainly appreciate the assurances that you are working on this difficult subject and your agency will come up with some way so that the American people will have more information about who actually owns the companies and broadcasting companies, the communication, telephone and telegraph lines and so forth that are so essential to the business and the home life activities.
Mr. WILEY. Yes, sir.
Senator METCALF. Thank you very much.
Mr. WILEY. Thank you, Mr. Chairman.
[Information requested and subsequently supplied for the record by the FCC follows:]
1 Date of Cede & Co. report June 28, 1974. Date of A.T. & T. report form M December 31, 1973.
2 Total voting stock as reported by A.T. & T. on December 31, 1973 was 555,283,912.
3 A.T. & T. acting as agent for participants in shareowner dividend reinvestment and stock purchase plan.
Date of Cede & Co. report June 28, 1974. Date of Continental Telephone report Mar. 15, 1974.
* Total amount of voting stock as reported by Continental Mar. 15, 1974, was 35,162,483.
Total only includes Cede & Co. listing. Not in Continental Telephone's top 30 listing.
• Not included in total: Preferred: 5 percent series, 96,776; $0.80 convertible series A, B, C, E, 360,252; $1 convertible series D, 494, 663.
1 Date of Cede & Co. report June 28, 1974. Date of G.T. & E. report Form 10K February 20, 1974.
* Total amount of voting stock as reported by G.T. & E. was 123,624,506.
* Total only includes Cede & Co. listing. Not on G.T. & E.'s top 30 listing.
1 Date of Cede & Co. report June 28, 1974. Date of RCA report Form 10K March 8, 1974.
2 Total amount of voting stock as reported by RCA March 8, 1974 was 75,786,013.
3 Total only include Cede & Co. listing. Not in RCA's top 30 listing. Nominee for 1st National Bank of Boston was listed as Berke & Co.
UNITED TELECOMMUNICATIONS, INC.-PRELIMINARY SUMMARY
1 Date of Cede & Co. report June 28, 1974. Date of United Telecommunications. Form 10K Dec. 3, 1973.
2 Total amount of voting shares as reported by United Telecommunications was 42,077, 323.
3 Nominee for Chemical Bank as listed in nominee list was Merrick & Co.
Nominee for Bank of New York as listed in nominee list was Whiting & Co.
Nominee for State Street Bank as listed in nominee list was Berry & Co.
Total only includes Cede & Co. listing. Not in United Telecommunications top 30 listing.
Date of Cede & Co. report June 28, 1974. Date of Western Union Corp. Form 10K Mar. 1, 1974.
* Total amount of voting stock as reported by Western Union was 14,190,496.
* Nominee for 1st National City Bank as listed in nominee list was Stuart & Co. Total only includes Cede & Co. listing. Not in Western Union's top 30 listing.
Senator METCALF. We are pleased and privileged to have as our next witness Hon. Helen Bentley, Chairman of the Federal Maritime Commission. I apologize that I was late this morning and I compliment you on your patience in waiting to testify. We are looking forward to your testimony and with a great deal of anticipation. We have followed some of the Commission's activities and have approved of them.
Since you have a prepared statement after you have identified your colleagues for the record, would you go right ahead in your own way? STATEMENT OF HELEN DELICH BENTLEY, CHAIRMAN, FEDERAL MARITIME COMMISSION; ACCOMPANIED BY JOHN RIDLON, OFFICE OF GENERAL COUNSEL; LEROY FULLER, DIRECTOR, BUREAU OF CERTIFICATION AND LICENSING; AND ANDREW WEISSLER, ECONOMICS
DEPUTY DIRECTOR, BUREAU OF INDUSTRY
Ms. BENTLEY. Thank you, Mr. Chairman. I want to join Chairman Wiley in thanking you for this opportunity to appear here today and to commend your subcommittee for exploring the corporate setups of the Nation's companies which are under regulatory agency jurisdictions.
This morning I am accompanied by John Ridlon of our Office of General Counsel; Leroy Fuller, Director of Bureau of Certification