Trust holdings exceeding $10,000,000 but less than $20,000,000 Allegheny Ludlum Industries, Inc. Dart Industries, Incorporated Deere & Company Dresser Industries, Incorporated E. I. du Pont de Nemours & Company International Flavors & Fragrances, Inc. Louisiana Land & Exploration Company Melville Shoe Corporation Mobil Oil Corporation National Steel Corporation J. C. Penney Company Phillips Petroleum Company Roadway Express, Incorporated Standard Oil Co. of California Teledyne, Inc. Times-Mirror Company Wachovia Corporation Whirlpool Corporation Hon. LEE METCALF, Washington, D.C. DEAR SENATOR METCALF: As Mr. Murray is out of the country, I am sending along to you a copy of our 1973 Annual Report which I hope will serve your purpose. Sincerely, JAMES E. MANDLER, [Excerpt from Harris Bank Corp., Inc., 1973 Annual Report] TRUST DEPARTMENT MARRS BANKCORP, INC. in millions of dollars 18 Gross income of the Trust Department of Harris Bank was a record $16,332,000 in 1973, an increase of 15%. Continuing growth in pension and profit sharing and investment advisory business accounted for a large portion of this gain. The other important contributors to growth in Trust Department income were the Personal Trust and Stock Transfer Divisions. The Institutional Investment Service continues to The actual division of assets in any one account may vary substantially from the aggregates shown above. This is due to differences in basic investment objectives and, in many cases, investment instructions or directions from authorized persons outside the bank. Each account is governed by its own authorization document, is a completely separate and distinct legal and investment entity and has a beneficiary or beneficiaries ranging from one individual to many thousands of people in the case of a large pension trust. 20 Largest Holdings (Market Value on December 31, 1973) of Common Stocks Represented on Trust Department Working List The preceding table shows the 20 largest common stock holdings from the Trust Department's Working List. The Working List is comprised of those common stocks that have been approved for broad use in accounts where the Trust Department has investment responsibility. In each case, these holdings are spread among a large number of separate accounts including one or more commingled funds. For instance, stock of International Business Machines is held in 1,444 accounts and four commingled funds in which 2,300 additional accounts participate. The number of shares held and the market value of such holdings are constantly changing because of individual investment decisions relating to separate accounts and because of daily changes in security prices. Most of the stock holdings mentioned in this report are registered in the names of these Trust Department nominees: Act & Co., Donson & Co., Emp & Co., Gale & Co., Hap & Co., Hit & Co., Ord & Co. and Wait & Co. A nominee is used to improve service and minimize customer costs by reducing paper work involved in completing sales, effecting transfers and collecting dividends. Not included in the above data is the principal amount outstanding of debt securities for which the bank serves as corporate trustee. These securities amounted to approximately $7.5 billion at year end. Outside political factors continue to have an impact on Trust Department activity. In April 1973, the Illinois Supreme Court construed the November 3, 1970 Constitutional Amendment as leaving personal property owned by a trustee or other fiduciary for the benefit of an individual subject to the personal property tax (pension and profit sharing trusts are exempt by statute). On the other hand, such property directly owned by the same individual is clearly exempt from the tax. Important steps are being taken through litigation brought on behalf of both corporate fiduciaries and individual beneficiaries to have this serious inequity remedied. Nationally, Congress continues to study proposals for changes in income, estate and gift tax laws. Pending Federal pension legislation may combine constructive changes with new limitations on the tax deductibility of contributions that would irreparably harm the private retirement system, particularly profit sharing plans. Chalkley J. Hambleton, President of Harris Bankcorp and Harris Bank, is currently serving as the President of the Trust Division of the American Bankers Association. This is a demanding position of leadership in the rapidly developing, increasingly complex and sometimes misunderstood trust industry. THE FIRST NATIONAL BANK OF BOSTON, Hon. LEE METCALF, DEAR SENATOR METCALF: Your letter of March 11 addressed to our President, William L. Brown, has been referred to me since I am in charge of the Trust Division. We have not published, nor do we have in the works a "report dealing with your trust department's investments in portfolio companies as of the end of 1973." However, we have no reluctance about furnishing you data on our major holdings, as long as the confidentiality of our trust accounts is not affected, and I enclose a list of our 25 largest-with market values as of February 25, 1974. Please note that these are holdings in supervised accounts and do not include simple custody accounts, etc. I am sure your staff will already have for you our 20 largest holdings at December 31, 1972, as reported in the July, 1973 issue of FORTUNE. For your possible interest, I have also enclosed a list of our 20 largest holdings in supervised accounts as of January 27, 1964. Finally, to save your staff the trouble, I enclose a copy of our annual report to the Comptroller of the Currency, covering total market value of supervised holdings in the Trust Division as of December 31, 1973. Cordially yours BEN AMES WILLIAMS, Jr., Enclosures (3). |