Apartheid the Target : Divestment: Cities, States Take Stock

Times Staff Writer

To fight apartheid, the city treasury of Washington will withdraw deposits from any bank that lends in South Africa. But the city’s employee pension fund is allowed to invest in stocks of those banks.

New York City generally makes it harder for firms selling to the South African police and military to win city contracts. But the Big Apple isn’t sure which companies those are.

Raytheon appears on many lists of companies whose stock should be divested, even though it has only two employees in South Africa. But General Motors, with about 5,000 employees there, is off some lists because of high rankings it receives for promoting equality for blacks.

As the furor over racial policies in South Africa has picked up, so too has the issue of how companies are chosen for divestment or other actions to protest their involvement in South Africa.


Listing ‘Pretty Arbitrary’

“We think the process is pretty arbitrary,” says William D. Broderick, Ford Motor Co.'s director of international governmental affairs, noting his firm’s unhappiness with being included on some divestment lists even though it supports social programs and equal opportunity for black South Africans.

While about 300 U.S. firms are targets for divestment because they show up on widely circulated lists of companies with employees in South Africa, thousands of firms with substantial commercial involvement escape detection because the lists don’t identify companies that trade actively with South Africa without maintaining a physical presence there.

Some firms are mistakenly placed on divestment lists although actually they are not active in South Africa, while others with ties to South Africa escape scrutiny because they don’t report their activities there. Companies also have supplied incorrect or incomplete information about their activities in South Africa, pension fund officials complain.


Listings Called Biased

Businesses, on the other hand, say that government officials running divestment programs often are ill-informed about business conditions in South Africa. Businessmen complain that some lists are biased against firms with small investments in South Africa, or that they unfairly include firms with strong records of aiding South African blacks.

It’s not hard to see why the issue is so critical. At least 24 cities and seven states have required their public pension funds to either fully or partially divest stocks of firms with ties to South Africa. Some also must grant preferences in contract awards to firms with no investments there. A growing number of universities, private foundations and mutual funds also have joined the divestment movement. Fear of criticism is given credit for a recent surge in the number of firms agreeing to abide by the Sullivan Principles, a set of guidelines written by the Rev. Leon Sullivan of Philadelphia, the first black member of the board of General Motors, calling for, among other things, equal treatment of black workers in South Africa.

After falling off in 1983 and 1984, the list of Sullivan signatories is now at about 152, up 26 since last November and the highest number since the Sullivan code was introduced in 1976. Many of the new firms joined because they faced shareholder resolutions involving their South African ties “and to get them off their backs, they figured it was better to sign up,” says D. Reid Weedon, a senior vice president at Arthur D. Little Inc., of Cambridge, Mass., a consulting firm that monitors compliance with the Sullivan Principles.


“Corporations are beginning to realize that their corporate image is sullied by their actions in South Africa,” says Steven Matthews, New York City’s assistant comptroller. Matthews says he has met with executives of several companies “who are very concerned” about negative publicity arising from their appearance on divestment lists.

The divestment movement also appears to be having an economic impact.

To comply with the New York City law generally barring contracts with companies selling to the South African police and military, Motorola said last month it would no longer sell radio systems to the South African police. But Motorola, a major supplier of radio systems to the police departments of New York City and other major cities, said that it would remain in South Africa, selling to commercial users.

Leaving by Attrition


Other firms are quietly reducing their South African ties by not increasing capital spending or employment there--in effect, pulling out through attrition. One not-so-quiet firm is Phibro-Salomon, which markets metals, minerals, chemicals and fertilizer in South Africa. It said it would place no new investments in South Africa because of the nation’s “morally repugnant” racial policies.

“Any company which announces it is building a new plant in South Africa would take enormous flak,” says Jennifer Davis, executive director of the American Committee on Africa, a research and anti-apartheid lobbying organization.

Overall, direct U.S. investment in South African subsidiaries and affiliates fell to $2.3 billion in 1983 from a peak of $2.6 billion in 1981, according to the U.S. Commerce Department. Figures for 1984 are not yet available, but analysts say it probably fell further.

Perhaps nine firms have left South Africa since January, on top of about 30 that had left between 1980 and 1984 (11 had moved in during those years), according to the Investor Responsibility Research Center.


Latest to depart include Oak Industries, which sold a 300-employee electrical-products plant; City Investing, which sold a 500-employee steel-drum and pail manufacturing plant; Continental Corp., which sold its insurance subsidiary; Blue Bell, which sold a 600-employee clothing factory; West Point-Pepperell, which sold its minority interest in a 92-employee textile plant; Perkin-Elmer, which sold a 12-employee scientific-instruments sales office; Opico, which sold a three-employee sales office, and Pan American World Airways, which ended twice weekly flights to Johannesburg.

In addition, Pepsico says it plans to sell its bottling plant, while International Harvester plans to sell its farm-equipment manufacturing operations by next month. Ford recently announced it was merging its 6,673-employee auto plant with a unit of Anglo American Corp., a South African conglomerate. Coca-Cola has sold part of its majority interest in a 4,300-employee bottling plant and has agreed to relinquish majority control within two years.

Only one U.S. firm, Schlumberger, is known to have entered since the beginning of the year, the Investor Responsibility Research Center says.

While the companies generally attribute their pullouts to corporate restructurings or to the severe South African recession, which has depressed profits of many U.S. operations there, some officials admit that the time and resources needed to fend off bad publicity or to file reports about their South African activities have begun to make them question the desirability of staying.


“The hassle factor has some relevance,” says Ford’s Broderick, noting that companies not already in South Africa have said they would be very reluctant to enter now.

Stock Prices Stable

However, divestment so far has had little or no impact on the stock prices of target firms or their ability to raise capital, fund managers and company officials say. Once pension funds decide to unload a stock, they often sell it in stages so as to minimize the downward effect on the price.

And although the numbers of public pension funds, universities and others joining the divestment list is growing, they still represent only a fraction of the total stock ownership in U.S. corporations. Public pension funds control less than 5% of the stock of American companies. A much larger percentage lies in the hands of corporate and private pension funds, which generally are barred under the federal Employee Retirement Income Security Act (ERISA) from using social or political criteria in investment decisions.


Some target companies, such as International Business Machines and General Motors, are so big and have so many shares outstanding that even a concerted divestment effort by all public pension funds would have a negligible effect on their stock.

But if the movement gains momentum, some fund managers say, it could dampen stock prices of companies with a smaller number of shares or with stock that is not widely traded. And decisions to withdraw deposits from banks lending to South Africa also could hurt those banks with high proportions of deposits from government agencies.

“It would probably raise their cost of funds,” says Robert M. Odell, city treasurer of Los Angeles, which is considering withdrawing deposits from banks lending in South Africa. “That ultimately affects the profitability of the banks, which in the long run affects their policy on whether to do business in South Africa.”

Accordingly, it is no surprise that companies doing business in South Africa are increasing their efforts to thwart the divestment movement or at least soften it, partly out of fear that the momentum might lead to far tougher economic sanctions, such as a ban on trade with South Africa. Twenty-five firms in South Africa, including Mobil, Dow Chemical, General Electric, General Motors and Ford, have organized a lobbying group to discourage cities and states from passing divestment laws.


Because these firms have a large number of employees in South Africa, they are most likely to appear on divestment lists available to pension fund managers.

Several lists are available, and most have one thing in common: To get on them, a firm must have employees or facilities physically located in South Africa. About 300 firms have been so identified.

Three lists are most commonly used. One, compiled by the U.S. Consulate General in Johannesburg, generally includes companies that voluntarily report their activities there. Another list, compiled by Arthur D. Little Inc., shows whether companies have agreed to become Sullivan signatories.

Perhaps the most comprehensive list is compiled by the Investor Responsibility Research Center, a nonprofit research organization. The center publishes a book that not only includes information from the other two lists, but also lists media firms with reporters in South Africa, firms with affiliates in South Africa, and the South African lending activities of the top 100 U.S. banks.


However, even the IRRC list is not complete. “I’m sure there are maybe a dozen companies out there that we just don’t know about,” says Catherine Bowers, a research analyst with the IRRC who helped compile the list.

The IRRC list also is not specific enough to meet the divestment criteria of some cities and states.

The District of Columbia’s criteria, for example, calls for divesting not only the stock of companies physically in South Africa, but also that of companies that trade with South Africa without a presence there. But determining who those companies are--some estimate there are as many as 6,000 in that category--is extremely difficult because trade flows change frequently and are nearly impossible to monitor completely.

Must Ensure Accuracy


“We would really like to identify them,” says Michael L. Wheet, a District of Columbia attorney involved in its divestment efforts. But without a full-time staff to track trade flows, as the United Nations has, “we don’t know how to find that out.”

Fund managers also must be careful not to act on outdated, incomplete or inaccurate information. The Investor Responsibility Research Center published an appendix to its list last December identifying 13 firms--including Sears, Roebuck and Procter & Gamble--that had been erroneously identified on other lists as having operations in South Africa. The IRRC also had a mistake on its own list: Wang Laboratories subsequently told the center that it had pulled out of South Africa.

The IRRC’s Bowers says she is not sure whether any cities or states divested stock of any of the erroneously listed firms, but notes that many of those firms had received inquiries from fund managers.

Information about bank lending in South Africa is particularly hard to come by. The IRRC noted in its report that 22 of the nation’s top 100 banks declined to provide information about their lending policies there. Generally, because of the incomplete data about bank lending, cities and states must do their own investigating.


Los Angeles, for example, is sending out questionnaires to about 50 banks asking for their policies. Mayor Tom Bradley proposed earlier this month that the city no longer place deposits in banks that deal in Krugerrands, the South African gold coins, as well as banks lending to the South African government, South African companies and banks.

(The city already has determined that some major local banks sell Krugerrands or lend to South African companies. One such bank is Security Pacific, which, by having, as of May 8, about $14.2 million, or 21%, of the city’s deposits is the city’s largest deposit banker, city treasurer Odell says. Also identified are Bank of California, with $6.2 million, or 9.1%; First Interstate Bank of California, with $6.1 million, or 9%, and Bank of America, with $3.7 million, or 5.5%.)

Another difficulty comes in trying to determine which firms sell to the South African military and police. New York City has identified some firms, such as Ford and General Motors, which have admitted that they sell to the police or military.

But city officials aren’t sure about others. Mobil, for example, markets and refines petroleum products in South Africa but argues that South African law prohibits it from finding out whether these products ever get to the police and military.


“Companies can come up with all kinds of devices to hide their activities,” assistant city comptroller Matthews contends. “It’s up to us to see through them,” he adds, noting that the city is also investigating IBM for possible sales to the police and military.

But businesses with investments in South Africa have their own share of gripes. Some complain of shoddy research on the part of the investment managers, a charge sometimes conceded by fund managers.

“Statements I’ve heard indicate (that many managers) haven’t done an adequate job of analyzing the situation,” says Gary Mattingly, general manager of the Los Angeles Fire & Police Pension system.

One of the most common business complaints is directed at jurisdictions and states such as the District of Columbia and Massachusetts, which have passed or are considering laws calling for divestment of all U.S. firms in South Africa, regardless of whether they carry out the Sullivan Principles.


“If a company can show it is significantly helping to change the country so that blacks can take an equal role, . . . then it shouldn’t be divested,” complains an executive of a large firm doing business in South Africa and a long-time Sullivan signatory. “If the company cannot, then it should be divested.”

Indeed, several states and cities, including Connecticut, Maryland, Iowa, Nebraska and San Francisco, have policies that at least temporarily exclude from divestment firms scoring high on the Sullivan rankings.

To win high marks, a firm not only must have strong equal-employment practices for blacks but also must contribute to community and training programs to improve blacks’ conditions. To become a signatory in the first place, firms must agree to file annual reports about their compliance with the principles and pay an annual fee of between $2,500 and $7,000 to cover the costs of administering the program.

Firms scoring the highest marks in the most recent survey last year include such corporate behemoths as Coca-Cola, Control Data, Du Pont, Exxon, Fluor, General Motors, Hewlett-Packard, IBM, Mobil and Xerox. Accordingly, these firms are often off many divestment lists.


But some firms contend that basing divestment decisions on whether firms are Sullivan signatories discriminates against those with smaller operations in South Africa. Those firms complain that it is less practical for them than large firms to meet Sullivan requirements: that they support training and educational programs for blacks and actively lobby the government against apartheid.

Can Aid Black Programs

“The (Sullivan) program was really designed for the IBMs and General Motors of the world, which have large staffs in South Africa,” says Wallace Dempsey, corporate secretary of International Flavors & Fragrances, a non-Sullivan signatory with only 30 employees there.

But larger companies that are Sullivan signatories say it isn’t all that difficult to meet the requirements. Even small firms, they say, can make monetary contributions to support programs that help blacks.


Once companies get on the various South Africa lists, they cannot get off unless they actually withdraw from the country. While companies, particularly those with a small presence there, may contend that the lists don’t take into account their own special circumstances, it is up to pension fund managers to decide for themselves whether a company’s argument has merit.

Indeed, many managers won’t divest stock of media companies, such as the Washington Post Co. and Times Mirror Co., publisher of The Times, because they only have reporters there.

However, the District of Columbia’s law is so broad that it calls for divesting the stocks of every U.S. firm in South Africa, even media firms. The district doesn’t want to include those firms, but “we don’t have discretion to keep them off (our divestment list),” city attorney Wheet says. But, he adds, city officials are rewriting the law to make an exception for the media.

U.S. COMPANIES IN SOUTH AFRICA The following is a list of companies with direct investments in South Africa, whether they are signatories to the Sullivan Principles (a code of conduct promoting equality for black South Africans), and their 1983 sales, assets and employees in South Africa. Direct investment is defined as a single U.S. company owning 10% or more of a South African subsidiary or affiliate. The list was compiled in December, but some companies that are known to have pulled out of South Africa have been removed. Other changes, however, may have occurred since the list was compiled by Investor Responsibility Research Center. NA=not available


1983 S. Africa S. African Company Signatory sales assets In millions In millions AM International No NA NA AMR Corp. No none NA Abbott Laboratories Yes less than $15 less than $6.5 Accuracy Corp. No NA NA Air Express International No NA NA Air Products & Chemicals No 17 34 Albany International No NA NA Alexander & Alexander Services No 5.8 18 Services Allegheny International No NA NA Louis A. Allen Assoc. No NA NA Allis-Chalmers No less than 13 less than 11 Amdahl Corp. No NA NA American Cyanamid Yes 50 9 American Express Yes 9.6 0.08 American Home Products Yes 41 24 American Hospital Supply No 3.3 1.3 American Intl Group Yes NA 20 Applied Power Inc. No NA NA Armco Yes 7.3 5 Ashland Oil Yes 7.5 1 Associated Metals & Minerals No NA NA Automatic Switch No NA NA Avery International No NA NA BBDO International No NA NA Baker International No NA NA Bandag Inc. No NA NA Ted Bates Worldwide No NA NA Bausch & Lomb Yes NA NA Baxter Travenol Laboratories Yes 2.4 5.2 Beatrice Cos. No NA NA Bechtel Group No NA NA Bell & Howell No NA NA Black & Decker Mfg. No NA NA Boeing Co. No None 0.005 Borden Inc. Yes less than 22 less than 14 Borg-Warner Yes 63 29 Born Inc. No NA NA Bristol-Myers Yes NA NA Buckman Laboratories No NA NA Bucyrus-Erie No NA NA Bundy Corp. No NA NA Burroughs Corp. Yes NA more than 150 Butterick Co. Yes NA “negligible” CBI Industries Yes NA NA CBS Inc. Yes NA 0.5 Cigna Corp. Yes 38 29 CPC International Yes less than 80 less than 50 Caltex Petroleum Yes NA NA Card Key Systems No NA NA Carman Industries No NA NA Carnation Co. Yes NA NA Cascade Corp. No NA NA Caterpillar Tractor Yes 86 22 Celanese Corp. Yes 6.7 5.5 Champion Spark Plug No NA NA Chase Manhattan Yes does not apply NA Chesebrough-Pond’s No 28 14 Chicago Pneumatic Tool No 8.1 5.2 Citicorp Yes does not apply 0.2 Coca-Cola Co. Yes 260 60 Colgate-Palmolive Yes NA NA Columbus McKinnon No NA NA Computer Sciences Corp. No NA NA Continental Corp. No NA NA Continental Grain No NA NA Control Data Yes less than 19 44 Cooper Industries Yes 11 12 Coulter Electronics No NA NA Crown Cork & Seal No NA NA Cummins Engine Yes 6,700 None D’Arcy-MacManus & Masius Worldwide Yes 25 1.8 Dames & Moore No NA NA Dart & Kraft Yes 25 16 Deere & Co. Yes 43 58 Deltak Corp. No NA NA Diamond Shamrock No NA 0.13 Do-All Co. No NA NA Donaldson Co. Yes NA NA Dow Chemical Yes 60 32 Dow Corning Yes NA NA Dr Pepper No NA NA Dresser Industries Yes 55 45 Du Pont Yes 35 None Dukane Corp. No NA NA Dun & Bradstreet Corp. No NA NA Eastman Kodak Yes less than 100 NA Eaton Corp. Yes 19 10 Echlin Co. No NA NA Ecolaire No NA NA Emery Air Freight No NA NA Emhart Corp. No NA NA Engelhard Corp. Yes 4.5 1.5 Erico Products No NA NA Eriez Magnetics No NA NA Euclid Inc. No NA NA Exxon Corp. Yes 230 10 FMC Corp. Yes less than 35 less than 28 Federal-Mogul Yes NA NA Ferro Corp. Yes NA NA Firestone Tire & Rubber Yes NA NA Flow General No 0.42 0.33 John Fluke Mfg. Yes 2.7 1.7 Fluor Co. Yes 47 9 Foote Cone & Belding Communications No NA NA Ford Motor Yes 530 230 Foster Wheeler Yes NA NA Franklin Electric Yes 6.7 2.3 Fruehauf Corp. No less than 20 less than 7.1 GAF Corp. No NA NA GATX Corp. No NA does not apply GTE Corp. No NA NA Gates Rubber No NA NA Gelco Corp. No NA NA General Electric Yes less than 140 less than 120 General Foods No NA NA General Motors Yes 320 140 General Signal No NA NA A.J. Gerrard & Co. No NA NA Getz Corp. No NA NA Gillette Co. Yes less than 22 NA Goodyear Tire & Rubber Yes NA NA W.R. Grace & Co. Yes NA NA Grey Advertising No NA NA Grolier Inc. No 3.4 2.8 Harnischfeger Corp. No NA NA Harper Group No NA NA Hay Associates No NA NA Hayes/Hill No NA NA Healthdyne Inc. No 0.5 0.15 Heinemann Electric No NA NA Walter E. Heller Overseas Corp. Yes NA NA Henkel Corp. No NA NA Hewlett-Packard Yes 41 NA Honeywell Inc. Yes less than 49 less than 25 Hoover Co. Yes NA NA Houdaille Industries No NA NA Hughes Tool No NA NA Hydro-Air Engineering No NA NA I.M.S. International No NA NA Illinois Tool Works No NA NA Ingersoll-Rand No 37 31 IBM Yes less than 230 NA International Flavors & Fragrances No about 4.6 NA Intl Harvester Yes NA NA International Minerals & Chem. Yes 9 9.8 International Staple & Machine No NA NA ITT Yes 36.9 10 Interpublic Group of Companies Yes 11 16 JWT Group No NA NA Johnson & Johnson Yes about 60 about 42 S.C. Johnson & Son No NA NA Johnson Controls Yes 4.7 0.93 Joy Manufacturing Yes 40--50 25--30 Kellogg Co. Yes NA NA Kendavis Industries International No NA NA Kimberly-Clark No 45 11 L&M; Radiator No NA NA Estee Lauder No NA NA Leco Corp. No NA NA Libbey-Owens-Ford No NA NA Eli Lilly & Co. Yes NA NA Loctite Corp. No less than 2.2 less than 2.1 Longyear Co. No NA NA Lubrizol Corp. No 16 14 Lykes Bros. Steamship No None None Macmillan Inc. No NA NA Maremont Corp. No NA NA Marriott Corp. Yes less than 11 less than 0.6 Marsh & McLennan Cos. Yes NA NA Martin Marietta No NA NA McLean Industries No NA NA McGraw-Hill Yes 3 3.2 Measurex Corp. Yes NA NA Medtronic Inc. No NA NA Merck & Co. Yes 39 23 Metallurg Inc. No NA NA Midland-Ross No 3.7 3 Millipore Corp. No NA NA Mine Safety Appliances Yes NA NA Minnesota Mining & Mfg. Yes 73 26 Mobil Corp. Yes NA 400 Mohawk Data Sciences No NA NA Monsanto Co. Yes 2.5 2 Motorola Inc. Yes NA NA NCNB Corp. Yes does not apply NA NCR Corp. Yes less than 50 less than 40 Nabisco Brands Yes NA NA Nalco Chemical Yes NA NA National Education Corp. No NA NA National-Standard No NA NA National Starch & Chemical No NA NA 70 National Utility Serv. No NA NA Newmont Mining No 640 86 A.C. Nielsen Co. No 7.1 4.7 Norton Co. Yes 38 26 Ogilvy & Mather International No NA NA Olin Corp. Yes NA NA Parker Hannifin No 4.6 less than 2.4 Parker Pen Yes less than 6.4 less than 3 Pennwalt Corp. Yes NA NA Pepsico Inc. Yes 20 15 Pfizer Inc. Yes 21.5 13 Phelps Dodge Yes 3.5 37 Phibro-Salomon Yes less than 300 less than 420 Phillips Petroleum Yes 19 14 Pizza Inn No NA NA Precision Valve No NA NA Preformed Line Products No NA NA Quaker Chemical No 1.5 NA Raytheon Co. Yes NA NA Reader’s Digest Assn. Yes NA NA Redland Braas No NA NA Revlon Inc. No less than 48 less than 26 Rexnord Inc. Yes less than 32 less than 21 R.J. Reynolds Industries Yes NA NA Richardson-Vicks Yes NA NA Robbins Co. No NA NA H.H. Robertson Co. No NA NA A.H. Robins Co. No 0.93 0.44 Rohm & Haas Yes 20 10 SPS Technologies No NA NA Salsbury Laboratories No NA NA Schenectady Chemicals No 3 NA Schering-Plough Yes NA NA Scovill Inc. No NA less than 3.1 G.D. Searle & Co. No NA NA Sentry Corp. Yes 8.8 17 Sigmaform Corp. No NA NA Simplicity Pattern No 1.5 1.1 Singer Co. No NA NA Skok Systems No NA NA Smith International No 2.9 3.5 SmithKline Beckman Yes 23 12 Sperry Corp. Yes 32 33 Square D No NA NA Squibb Corp. Yes NA NA W.R. Stamler No NA NA Standard Oil, Ohio Yes 24 10 Stanley Works No 3.4 1.3 Stauffer Chemical No 6 2.3 Steiner Corp No NA NA Sterling Drug Yes NA NA Stone & Webster No NA NA Sullair Corp. No NA NA Sun Chemical No NA NA Sybron Corp. No less than 5.5 less than 4.7 Tambrands Inc. Yes NA NA Tenneco Inc. No NA NA Tidwell Indust. No NA NA Timken Co. No NA NA Titanium Indust. No NA NA Tokheim Corp. No NA NA Trane Co. Yes NA NA Trans World Corp. Yes NA NA 20th Century Fox No NA NA Twin Disk No NA NA UAL Inc. Yes NA NA Union Carbide Yes NA NA Uniroyal Inc. No NA less than 15 United States Gypsum Yes 29 16 United States Steel No NA NA Upjohn Co. Yes NA NA VF Corp. No NA NA Van Dusen Air No NA NA Wang Laboratories No NA NA Warner Communications Yes NA less than 18 Warner Electric Brake & Clutch Co. No 0.6 0.1 Warner-Lambert Yes NA NA Wean United No NA NA Westinghouse Electric Yes NA NA Wilbur-Ellis Co. Yes 11 1.5 John Wiley & Sons No NA NA Wynn’s International No NA NA Xerox Corp. Yes 68 42

S. African Company employees AM International 370 AMR Corp. 4 Abbott Laboratories 141 Accuracy Corp. 21 Air Express International 45 Air Products & Chemicals 313 Albany International NA Alexander & Alexander Services 291 Services Allegheny International 2,025 Louis A. Allen Assoc. 6 Allis-Chalmers 90 Amdahl Corp. 56 American Cyanamid 1,025 American Express 4 American Home Products 503 American Hospital Supply 16 American Intl Group 160 Applied Power Inc. 32 Armco 6 Ashland Oil 91 Associated Metals & Minerals 20 Automatic Switch NA Avery International NA BBDO International 340 Baker International NA Bandag Inc. NA Ted Bates Worldwide 400 Bausch & Lomb NA Baxter Travenol Laboratories 886 Beatrice Cos. NA Bechtel Group 35 Bell & Howell 122 Black & Decker Mfg. 63 Boeing Co. 3 Borden Inc. 338 Borg-Warner 958 Born Inc. NA Bristol-Myers 346 Buckman Laboratories 28 Bucyrus-Erie 20 Bundy Corp. 200 Burroughs Corp. 563 Butterick Co. 44 CBI Industries 500 CBS Inc. 40 Cigna Corp. 113 CPC International 934 Caltex Petroleum NA Card Key Systems 11 Carman Industries 40 Carnation Co. 1,043 Cascade Corp. 8 Caterpillar Tractor 76 Celanese Corp. 50 Champion Spark Plug 92 Chase Manhattan 17 Chesebrough-Pond’s 529 Chicago Pneumatic Tool 138 Citicorp 311 Coca-Cola Co. 4,765 Colgate-Palmolive 1,234 Columbus McKinnon 438 Computer Sciences Corp. 550 Continental Corp. NA Continental Grain 5 Control Data 313 Cooper Industries 153 Coulter Electronics 30 Crown Cork & Seal 525 Cummins Engine 3 D’Arcy-MacManus & Masius Worldwide 101 Dames & Moore 15 Dart & Kraft 200 Deere & Co. 490 Deltak Corp. NA Diamond Shamrock NA Do-All Co. NA Donaldson Co. 147 Dow Chemical 200 Dow Corning 8 Dr Pepper NA Dresser Industries 767 Du Pont 33 Dukane Corp. NA Dun & Bradstreet Corp. 550 Eastman Kodak 567 Eaton Corp. 388 Echlin Co. 320 Ecolaire 6 Emery Air Freight NA Emhart Corp. NA Engelhard Corp. 8 Erico Products NA Eriez Magnetics NA Euclid Inc. 4 Exxon Corp. 484 FMC Corp. 81 Federal-Mogul NA Ferro Corp. 209 Firestone Tire & Rubber 2,461 Flow General 7 John Fluke Mfg. 25 Fluor Co. 182 Foote Cone & Belding Communications NA Ford Motor 6,673 Foster Wheeler 281 Franklin Electric 44 Fruehauf Corp. 1,400 GAF Corp. 5 GATX Corp. 22 GTE Corp. 70 Gates Rubber 74 Gelco Corp. NA General Electric 852 General Foods NA General Motors 4,949 General Signal 42 A.J. Gerrard & Co. NA Getz Corp. 350 Gillette Co. 296 Goodyear Tire & Rubber 2,510 W.R. Grace & Co. 143 Grey Advertising 190 Grolier Inc. 70 Harnischfeger Corp. 170 Harper Group 60 Hay Associates 39 Hayes/Hill 5 Healthdyne Inc. 20 Heinemann Electric 1,100 Walter E. Heller Overseas Corp. 24 Henkel Corp. 56 Hewlett-Packard 246 Honeywell Inc. 192 Hoover Co. 320 Houdaille Industries 100 Hughes Tool 10 Hydro-Air Engineering 16 I.M.S. International 87 Illinois Tool Works 5 Ingersoll-Rand 477 IBM 1,793 International Flavors & Fragrances 36 Intl Harvester 556 International Minerals & Chem. 234 International Staple & Machine NA ITT NA Interpublic Group of Companies 260 JWT Group 111 Johnson & Johnson 1,663 S.C. Johnson & Son 168 Johnson Controls 121 Joy Manufacturing 907 Kellogg Co. 333 Kendavis Industries International 9 Kimberly-Clark 1,804 L&M; Radiator 2 Estee Lauder 100 Leco Corp. 25 Libbey-Owens-Ford NA Eli Lilly & Co. 240 Loctite Corp. 38 Longyear Co. 32 Lubrizol Corp. 42 Lykes Bros. Steamship 17 Macmillan Inc. 11 Maremont Corp. 584 Marriott Corp. 460 Marsh & McLennan Cos. 1,050 Martin Marietta 90 McLean Industries 21 McGraw-Hill 42 Measurex Corp. NA Medtronic Inc. NA Merck & Co. 443 Metallurg Inc. 17 Midland-Ross 53 Millipore Corp. NA Mine Safety Appliances 496 Minnesota Mining & Mfg. 1,590 Mobil Corp. 3,342 Mohawk Data Sciences 92 Monsanto Co. 125 Motorola Inc. 250 NCNB Corp. 2 NCR Corp. 584 Nabisco Brands 983 Nalco Chemical 199 National Education Corp. 495 National-Standard 149 National Starch & Chemical No National Utility Serv. 40 Newmont Mining 17,498 A.C. Nielsen Co. 343 Norton Co. 1,342 Ogilvy & Mather International NA Olin Corp. 90 Parker Hannifin 59 Parker Pen 102 Pennwalt Corp. 16 Pepsico Inc. 556 Pfizer Inc. 267 Phelps Dodge 1,655 Phibro-Salomon 51 Phillips Petroleum 178 Pizza Inn NA Precision Valve 280 Preformed Line Products 102 Quaker Chemical 5 Raytheon Co. NA Reader’s Digest Assn. 380 Redland Braas 40 Revlon Inc. 437 Rexnord Inc. 490 R.J. Reynolds Industries 1,804 Richardson-Vicks 278 Robbins Co. 100 H.H. Robertson Co. NA A.H. Robins Co. 1 Rohm & Haas 100 SPS Technologies 17 Salsbury Laboratories 55 Schenectady Chemicals 35 Schering-Plough 285 Scovill Inc. 130 G.D. Searle & Co. 70 Sentry Corp. 409 Sigmaform Corp. NA Simplicity Pattern 28 Singer Co. 100 Skok Systems NA Smith International 34 SmithKline Beckman 267 Sperry Corp. 219 Square D NA Squibb Corp. 189 W.R. Stamler 8 Standard Oil, Ohio 2,282 Stanley Works 35 Stauffer Chemical 38 Steiner Corp NA Sterling Drug 401 Stone & Webster NA Sullair Corp. NA Sun Chemical NA Sybron Corp. 30 Tambrands Inc. 52 Tenneco Inc. 260 Tidwell Indust. 150--200 Timken Co. 251 Titanium Indust. 4 Tokheim Corp. 54 Trane Co. 62 Trans World Corp. 4 20th Century Fox 3 Twin Disk 8 UAL Inc. 940 Union Carbide 1,726 Uniroyal Inc. 0 United States Gypsum 2,631 United States Steel NA Upjohn Co. 208 VF Corp. 960 Van Dusen Air 5 Wang Laboratories NA Warner Communications 166 Warner Electric Brake & Clutch Co. 4 Warner-Lambert 515 Wean United 1 Westinghouse Electric 11 Wilbur-Ellis Co. 70 John Wiley & Sons 14 Wynn’s International NA Xerox Corp. 770


Company To the To state-owned To private government firms firms BankAmerica No Yes Yes Bank of Boston Corp. No No No Bank of New York Co. No No No Citicorp No No No Continental Illinois Corp. No No Yes CoreStates Financial Corp. No No No First Bank System Inc. No No Yes First Chicago Yes Yes No First Wisconsin Corp. No No Yes Fleet Financial Inc. No No Yes Harris Bancorp Inc. No No No Lincoln First Banks Inc. No No No Maryland National Corp. No No No NCNB Yes Yes Yes Northern Trust Co. No No No Norwest Corp. No No Yes PNC Financial Corp. No No Yes Security Pacific Corp. No No Yes Texas Commerce No Yes No Bancshares Inc. United Bank of No No No Colorado


Company To banks BankAmerica Yes Bank of Boston Corp. Yes Bank of New York Co. Yes Citicorp Yes Continental Illinois Corp. Yes CoreStates Financial Corp. Yes First Bank System Inc. Yes First Chicago No First Wisconsin Corp. Yes Fleet Financial Inc. Yes Harris Bancorp Inc. Yes Lincoln First Banks Inc. Yes Maryland National Corp. Yes NCNB Yes Northern Trust Co. Yes Norwest Corp. Yes PNC Financial Corp. Yes Security Pacific Corp. Yes Texas Commerce Yes Bancshares Inc. United Bank of Yes Colorado

Loans were made before policy prohibiting such loans. Source: Investor Responsibility Research Center