Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 656]

EXTRACTED TEXT FROM PAGE:

1978]

UNIVERSITY OF ILLINOIS

643

Whereas, one organization has announced its intention of withdrawing pension funds of $10,000,000 from a New York bank because of that bank's South African loans; Therefore, Be It Resolved that the shareholders request the Board to provide all shareholders by September 1978 a report which includes the following, provided that information directly affecting the competitive position of the corporation may be omitted and that funds to be expended in its preparation be limited to amounts deemed reasonable by the Board: (a) For the years 1970-78, a detailed description of each loan made to the South African government and state-owned corporations, or to private corporations for their operations within that country; (b) A description of the process by which such loan decisions are made; (c) A description of any South African governmental loan requests which were rejected; (d) A statement of current policy regarding future South African loans ; (e) T h e bank's evaluation of the overall social impact of its loans on the black majority and their struggle for full political, social, and economic equality. T h e reasons given by its proponents were: As South Africa has become increasingly unstable and the apartheid regime has refused to make meaningful changes, concern about American investment there has grown. One pension fund with assets of $9,000,000,000 voted last year in favor of two shareholder resolutions which would have prohibited the corporations from expanding their South African operations. Several major American institutional investors are reviewing their portfolios vis-a-vis divestiture of stock holdings in corporations with significant South African activities. T h e Attorney General of Wisconsin has advised the University of Wisconsin that the holding of investments in such corporations violates Wisconsin law against the state owning stock in corporations which discriminate. We believe that loans to the South African government provide direct support for the apartheid policies of that government and its oppression of the African majority. We believe that shareholders should receive the requested information to make an informed judgment about the propriety — both in moral and economic terms — of our bank's continued relationship with South Africa. We believe that such a report will demonstrate that, while continuing South African loans are not essential for the economic viability of this bank, they are essential for the maintenance of the South African system of apartheid. T h e attached letter was sent to Office of the Secretary of J. P. Morgan and Company by the comptroller. Texaco On April 25, 1978, the stockholders of Texaco met and, among other matters, considered a Stockholder Proposal, Item 4, submitted by The World Division of The Board of Global Ministries of the United Methodist Church, The Women's Division of the Board of Global Ministries of the United Methodist Church, Sisters of Charity of St. Vincent de Paul of New York, United Presbyterian Church in the United States of America, Ursuline Sisters of Tildonk, T h e Grail,