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groups which failed to respond to Senator Metcalf's reporting companies. The fourth is a general summary inquiry were retail companies.
of the data in the main section of the report, specifically Highlights of the tabulations which follow can be indicating the percentage of outstanding voting stock of found in the four following summary tables. The first each of the 89 fully reporting companies held (1) by the
. summarizes the identities of the largest stockholder of all the companies responding which supplied this informa
30 largest holders, (2) by all New York banks combined tion—132 in all. The second and third give data on all that were among the 30 largest holders, and (3) the largest holders of 2 percent or more of the stock of the 89 fully single holder.
29-553 O - 74 - 3
In this part of the report the information gleaned from Manhattan, the top stockholder in 21 companies. In each the responses to Senator Metcalf's letter is summarized case the percentage held by the top stockholder of outin four tables. The more detailed information follows understanding voting stock (usually common stock) is indicated. the six industry headings already referred to: industrial The companies are arranged in the industry sequence corporations, transportation, public utilities, retail trade, followed in the rest of the report. banks, and insurance.
The second part lists first the 14 cases in which a company's own stock or savings plan is the largest stockholder of the particular company; second, the 13 banks which
were the largest stockholder of only one of the 132 reportA precautionary note needs to be stressed at the outset, ing companies; third, the eight nonfinancial corporations one which applies to all of the tables in this report. The that were the top stockholder of reporting companies; data
showing holdings by trust departments of banks and fourth, the six individuals that were the top stockholder other financial institutions indicate aggregate holdings of reporting companies; fifth, the two funds which were without any indication as to the voting power inherent in the top stockholder of reporting companies; and sixth, such holdings. These holdings will include some with full the two other financial institutions that were the top voting authority, some with contingent or partial voting stockholder of reporting companies. Where a bank is power, and some with no voting rights.'
named as its own leading stockholder, it should be noted This precaution is especially important in interpretation that this refers to stock held within the trust department of data on Cede and Company, the nominee of the New of the bank but does not indicate that the bank itself York Stock Exchange through its subsidiary corporation, exercises voting rights of such stock. the Depository Trust Company. Under the rules of the
Tables 4 and 5 provide an overview of the extent to stock exchange, Cede and Company only votes stock on which major institutions hold 2 or more percent of the the instruction of member firms belonging to the De- stock of the 89 reporting companies. Table 4 includes all pository Trust Company in whose name the stock is those institutional investors which held 2 or more percent registered, even though there is no legal restriction to
of the voting stock of three or more of the 89 reporting Cede's right to vote stock it holds. Thus the fact that companies. The totals are broken down into the industry Cede and Company is the largest, or a sizeable, holder of categories which are utilized in this report. stock in a given company should not be interpreted as Thus it can be seen that, based on returns from 89 giving it actual voting strength in the stock of such a
corporations, Cede and Company held 2 or more percent company
of 55 out of these companies, followed by Chase Man[For further discussion of Cede and Company and the hattan with 2 percent or more of 46 companies, Morgan Depository Trust Company, see Appendix Ĉ, p. 335.) Guaranty with 2 percent or more of 29 companies, and
The first table of this section, Table 3, provides a list of First National City Bank with 2 percent or more of 28 the single largest stockholder of each company reported by companies. Twenty-four institutional investors held 2 any of the respondents supplying this information. Since percent or more of at least three companies among the many of the respondents who did not supply a list of the 89 reporting companies. These include (besides
Cede and 30 largest stockholders did indicate the identity of the Company, the nominee of the New York Stock Exchange) largest one, it is possible in this table to provide informa- eight New York banks, three Boston banks, two Chicago tion on 132 companies. This is the only table where there banks, two Minneapolis banks, six other banks, and two is this broad a company coverage.
New York brokerage houses.
TOP INSTITUTIONAL HOLDERS The table is arranged in two parts. The first includes all More detail is shown in Table 5 which takes the top eight instances in which a holder is the top stockholder in more institutional holders of this table, those with 2 percent or
a than one company; this part is arranged with the holders more of more than 10 out of the 89 reporting companies, in the order of the number of companies in which they and shows the actual percentages of total voting stock were the top stockholder, starting with Cede and Com- held by these eight holders in specific companies, arranged pany, the nominee of the New York Stock Exchange, the in the same sequence followed throughout the main body largest holder in 36 companies, followed second by Chase of the report, that is by industry group and within the 1 Part II of this document deals with stock in which institutional
group by size of company. Thus it can be seen, for example, investors have sole voting rights. Part III deals with stock in which
that Cede and Company, among the 55 companies in which institutional investors have sole or partial voting rights.
it held 2 percent or more of the voting stock, held 32.6 (21)
percent of the stock of the Chicago Milwaukee Corporation; 21.3 percent of the stock of Pacific Southwestern Airlines; 20.5 percent of the stock of United Brands; and 15 or more percent of the stock of five other companies. Similarly it can be seen that Chase Manhattan Bank, among the 46 companies in which it held 2 or more percent of the stock, includes five airlines, in four of which its holdings ranked between 9.0 and 6.9 percent; eight railroads, in six of which its holdings ranked between 8.3 and 5.3 percent; and 17 industrial companies, in five of which its holdings exceeded 5 percent of the company's outstanding stock.
5. 5 3. 8 5. 4 3. 9 5. 4 6. 9 3. O 5. 3 5. 9 4. 2 3. 8 6. 1 6. 9 3. 3 13. 6 18 7 4. 1
Table 6 (p.26) is a more general summary table of the information supplied by the 89 respondents that provided information on their top 30 stockholders of record. The information is arranged by industry division and subdivision (e.g., industrial corporations are divided into oil companies and all other industrial companies) and within each division companies are arranged by size. Five columns of data are provided as follows: (1) the percentage of total voting stock held by 30 top stockholders; (2) the percentage of total voting stock held by New York banks that are among the 30 top stockholders; (3) the percentage of total voting stock held by the single largest stockholder; this is divided into three groups: (a) where the largest stockholder is a New York bank; in this case the particular bank is indicated by a letter symbol; (b) where the largest stockholder is Cede and Company, the nominee of the New York Stock Exchange; and (c) where the largest stockholder is neither a New York bank nor Cede and Company. All of the data in this table are taken from the individual tabulations and text which comprise the following, and main, section of this report.
Cede & Co. (36)—Continued
American Electric Power..
Charter N.Y. Bank.
First National Bank of Dallas. Morgan Guaranty (4)
Chicago Rock Island & Pacific
Chesapeake & Ohio.
Public Service Electric & Gas... Bank of N.Y. (2)
Texas Eastern Transmission. Footnotes at end of table, p. 23.
4. 5 3. 6 4, 2 5. 2 9. O 7.4 8. 3 9. 0 6. 9 8. 4 6. 7 8. 3 6. 2 6. 4 8. 0 1. 1 2.9 5. 1 3. 6 10. 5
Table 3.-THE LARGEST STOCKHOLDER OF 132 COMPANIES IN 1972 AS REPORTED BY RESPONDENTS TO SENATOR METCALF'S LETTER
I. HOLDERS Which ARE THE LARGEST STOCKHOLDER OF MORE
THAN ONE COMPANY
7.0 1.5 6. 2 6.0
6. 1 5. 8 5.7
77.4 4.8 5.4
Cede & Co. (36)
5. 5 10.6 15. 0 19. O 15. 3 17. 0 21. 3 10.6 18. 9 32.6 13. 9
7.7 15. 1
4. 4 2. 5 4.2
Percent of company's
voting stock held
by top stockholder
Holder (Number of companies)
2. 2 3. O 18.8 3. 6 4. 3 3. 6 7. 9 11.7 8. 4 6.4
9.0 3. 8
First National of Boston..-- Dow Chemical Co.---Mercantile Safe & Trust. R. J. Reynolds, Inc.--Chicago, Title & Trust. Gulf, Mobile & Ohio.. Omaha Mutual..
Northern Natural GasNational Bank of Detroit. - Illinois Power & Light.--Manufacturers Hanover.. Wisconsin Electric Power. Continental Illinois Bank... Gamble-Skogmo.. Cleveland Trust.-
Cook United... First Trust Co. of St. Paul'. First Bank System-Republic National Bank of Republic National Bank Dallas.:
of Dallas. Girard Trust
Girard Trust. Citizens & Southern Na- Citizens & Southern National Bank.
tional Bank. National Shawmut Associa- National Shawmut Astion.
Bank of America (2)
Pacific Gas & Electric.. First National of Chicago (2)
5. 2 2. 6
5. 7 10.8
1 See precautionary note, p. 21. * As exchange agent under Union Pacific exchange offer.
Standard Oil (New Jersey)'- Standard Oil's trust fund. Standard Oil of California. Standard Oil Co. of Cal
stock plan. Ford Motor Co.-.-.
Ford Motor Co. em
ployee stock plan. U.S. Steel Corp----- United States Steel
Corp. savings fund for
salaried employees. Textron.
Textron employee stock
savings program. McDonnell-Douglas ------ McDonnell Douglas em
ployee savings plan. Burlington Industries Co... Burlington Industries
plan. Transcontinental Gas Pipe- Transcontinental Gas line Co.
Pipeline Co, em
ployee plan. Pacific Lighting Co...... Pacific Lighting Co. em
savings plan. Bank of America...
Bank of America's em
ployee stock plan. Wachovia Bank.
Wachovia Bank's em
savings and profit-
1 Now Exxon Corporation.
? See p. 130 for discussion of a bank's stock held by the trust department of that bank.
In July 1972 Loeps sold most of its interest in Franklin New York Corporation to Fasco International Holding, SA, controlled by the Italian Financier Michele Sindona. As of Dec. 31, 1972, Fasco International owned about 18.3 percent of Franklin New York Corporation's voting stock.