BURLINGTON NORTHERN, INC.-BOARD OF DIRECTOR INTERLOCKS WITH BANKS A staff Study by ICC Bureau of Accounts, Nov. 12, 1974 in response to request by Subcommittee on Budgeting, Management and Expenditures. Ownership: The 1973 annual ICC_Report discloses in schedule 109 that 16 of the top 30 stockholders are banks. Two of these 16 banks are interlocked with the Board of Directors of the Burlington Northern. At 12/31/73 the 16 banks controlled 3,010,291 shares of 12,438,421 outstanding shares; this represented 24.2 percent ownership. See exhibit G for details. Bank Interlocks: A chart is attached showing the bank interlocks with the Board of Directors of the Burlington Northern, Inc. Please note that although only fourteen banks, six bank holding companies and one banking association are directly interlocks with the Board, the six bank holding companies control 187 other banks as follows: The one banking association, Allied Bank International, is controlled equally by 18 individual banks; see exhibit D. The total of direct and indirect bank related interlocks is as follows: Description Direct interlocks. Banks controlled by bank holding companies. Banks affiliated with Allied Bank International. Less: Direct interlocks with banks controlled by interlocked bank holding companies.. Total direct and indirect bank related interlocks.. Using deposits as a measure of economic resources, the 215 bank related interlocks have combined financial impact of $64 billion at 12/31/73. See Exhibit E. Pension Funds: The First Trust Company of St. Paul is Trustee of the Burlington Northern's pension funds. At June 30, 1974, the pension funds had a market value of $60 million. The First Trust Company of St. Paul is a subsidiary of the First Bank System, Inc. Both the First Trust Company of St. Paul and its parent, the First Bank System, Inc., are interlocked with the B. N. Board. EXHIBIT A.-First Bank System, Inc.-88 Affiliates, Deposits of Bank Affiliates, Minnesota & Wisconsin Affiliates: First National Bank of Minneapolis.. First Bloomington Lake NB, Mpls.. First Southdale National Bank, Edina First Grand Ave. State Bank, St. Paul_ Alexandria-1st NB.. Austin-1st National Bank. Blue Earth-1st National Bank. $1, 165, 512, 933 11, 675, 425 22, 051, 691 60, 641, 444 56, 102, 368 31, 123, 289 33, 965, 744 33, 432, 867 29, 198, 067 41, 178, 117 22, 981, 645 23, 138, 365 28, 155, 399 49, 911, 667 4, 919, 562 28, 357, 575 26, 702, 535 28, 611, 285 139, 779, 288 E. Grand Forks-1st National Bank. 20, 826, 626 Paynesville-1st State Bank.... 10, 085, 478 10, 856, 910 68, 389, 020 Pipestone-Pipestone National Bank. Montana affiliates: Billings-Midland National Bank. Billings-Valley State Bank. Bozeman-1st National Bank- Butte First Metals Bank & Trust Co. Forsyth-1st State Bank.. Fort Benton-1st Chouteau County Bank. EXHIBIT A.-First Bank System, Inc.-88 Affiliates, Deposits of Bank Affiliates, Montana affiliates-Continued Livingston-1st NPRKB.. Miles City-1st National Bank....... North Dakota Affiliates: Bismarck-1st National Bank... Cavalier-1st Merch. & Farmers Bank. Fargo-Mer. National Bank & Tr. Co.... Valley City-1st National Bank. South Dakota affiliates: Aberdeen Aberdeen National Bank.. Gettysburg-1st Potter County Bank.. Lemmon-1st National Bank Miller-1st National Bank. Sioux Falls-National Bank of South Dakota.. Total for all bank affiliates... EXHIBIT B.-Northwest Bancorporation-81 affiliates, deposits of affiliated banks Minnesota: as of Dec. 31, 1973 Faribault: Security National Bank. 13, 271 Grand Rapids: First National Bank.. Fergus Falls: Fergus Falls National Bank & Tr. Co.. 37, 514 31, 312 Hoyt Lakes: First National Bank- 29, 267 Litchfield: Northwestern National Bank. 5, 740 17, 476 Ortonville: Northwestern State Bank. EXHIBIT B.-Northwest Bancorporation—81 affiliates, deposits of affiliated banks Owatonna: Security Bank & Trust Co.. 11, 634 Red Wing: First National Bank.. 40, 061 Redwood Falls: First Northwestern National Bank. 24, 531 Rochester: Northwestern National Bank.. 22, 944 St. Cloud: Northwestern Bank & Trust Co. 73, 267 Sauk Rapids: Northwestern State Bank. 27, 892 Silver Bay: Silver Bay State Bank.. 13, 657 4, 472 14, 864 27, 242 17, 182 11, 955 37, 597 Iowa: 51, 288 Helena: Northwestern Bank and Union Bank & Trust Co. 78, 094 |