Ses Ne by Ralph Nader i WASHINGTON—To most Americans, a company without a country would seem suspicious anfiuuzeling. But not to many leading corporate executivees who are finding that their multinational cor- porations’ American nationality is something of a drag. Last month, at the White House Conference on the In- dustrial World Ahead, Carl A. Gerstacker, chairman of Dow Chemical Co., revealed this yearning by his big business colleagues. He declared that an “‘anational corporation,’ without any national ties, could operate more flexibly and freely around the world. Later he told an ingpirer that for a decade, Dow 1d been studying the possibility of locating on an island in the Caribbean. The chief obstacle, he added, would be unfavorable tax conse- quences to investors in the exchange of stock involved in such a corporate emigration. If ever there was a new argument for federal char- The spectac ¢ panies operating interstate and internationally yet chartered by such states as Delaware or New Jersey has stoked political controversy since the late 19th Century. At that time and later by Presidents Roosevelt . and Wilson, and just before World War II, the issue of federal chartering replacing the states for interstate business firms arose and each time was defused by narrower reforms centering around the passage of antitrust amendments or es- tablishment of regulatory agencies such as the Interstate Commerce Commission or the Securities and Exchange Commission. Now, even stronger reasons compel a new consideration of the public benefits of federal chartering. Fewer corporations not only control a larger portoin of the economy but also are dealing with the technologies and political power that heavily shape the society. The states, which now charter corporations, are no match. The history of state chartering has been a very unequal contest between corporate giants and legal pygmies. As one measure of sheer size, a list of the top 50 waterways by 90 percent. suds.” )re0000Q00OCGOOOTS The U. S. Department of the Interior said this week that its controversial &#¥ironmental impact statement on the proposed Alaska pipeline “will likely be released before the end of March.” The statement on the possible Savhanmentl hazards of the pipeline was originally scheduled for release last September. It was subsequently delayed: for release until December, then February—afi%/ now to late March. An Interior Department spokesman said the reason for the delay is to give the staff additional time to discuss alternate sources of power other than oil. The study will talk about the possiblity of using solar or nuclear energy—in place of petroleum—to meet the nation’s power needs over the next several decades. Conservation groups have strongly opposed the construction of a 900-mile pipeline across Alaska—insisting that other power sources could be developed to meet domestic needs. ] Four sons of the rancher who posted bail for Angela Davis last week were turned away from their elementary school in Rasin City, Calif., Friday morning. tary school to leave her children for the day, she was informed by principal Thomas Davis that the children would no longer be permitted to attend the school. The four young boys had been attending the school on a special inter-district permit which was required because they had taken up temporary residence recently in a neighboring school district. But the inter-district privilege was suddenly revoked within 24 hours after McAfee announced hfivas posting the $100,000 bail bond for Miss Davis’ release. Because of numerous death threats against McAfee and his family, the McAfees had gone into hiding over the weekend. But a dozen volunteers from the largely conservative Fresno area were staying on the ranch property with arms, acting as body guards in the event any trouble arose. Mr. McAfee had said earlier that he guaranteed the bond for Miss Davis bgecause of his belief in her innocence and because of his long-timt¥affiliation with the Communist Party. Sen. Gaylord Nelson has stepped up his attack on the Navy's Project Sanguine in an attempt to have the project cancelled. Project Sanguine is a proposal which calls for the con- struction of a steel cable “grid” under 6000 square miles of northern Wisconsin. The Defense Department said the cable grid will permit the Navy to communicate with Polaris sub- marines around the world. In a letter to Sen. John Stennis, the chairman of the Armed Services Committee, Sen. Nelson called for cancellation of the $750 million project on the grounds that it will be harmful to the environment. Nelson said that no environmental impact statements on Project Sanguine had ever been’ prepared, and warned that the system would damage the Wisconsin landscape and could cause massive interference with local television and radio reception. Sen. MWison said that he first learned of the Sanguine project in 1968—although it had been in the planning stages for the previous nine years. He said that the project had been kept so secret by the Navy that, even though he had been both a governor and senator of Wisconsin during the past 13 years, he learned of the project only four years ago. The National Wildlife Federation reports the news that flouride emissions from an aluminum plant in Montana have been found over an area covering 69,000 acres of Glacier National Park. The ernissions come from the Anaconda Aluminum Co. plant at Columbia Falls, Mont. The flouride was found to have affected plants as well as in- sects. Some predatory insects were found to have higher than normal flouride counts, indicating that the flouride was being passed along in the food chain. The flouride is carried by prevailing winds from the plant which is many miles away. corporations, states and cities by gross revenue in 1968, seven of the top 10 and 41 of the top 50 were corporations. Half of the nation’s 100 largest companies and one third of the firms listed on the New York Stock Exchange have made their legal home in the tiny state of Delaware, About 70 years ago Delaware decided to launch a vigorous sales program to at- tract corporate chartering. Its law was for sale; its legislature and courts developed a veritable ‘‘corporate Reno’’ facilitating the softest of chartering conditions. GM, Ford, ITT, big bank holding companies have since flocked to its friendly embrace. The impact of Delaware corporate law on the remaining state or combination of states could cope with the lowest Delaware. No state permits such power to the officers- directors while absolving them of much responsibility and providing them with a most sympathetic judiciary. The law of corporate charters in the US has been almost literally determined by Delaware law. This all may sound as if it should interest only lawyers. But federal vs. state chartering has consequences which affect the ways corporations behave toward their employees, con- sumers, governments and en- vironment as well as the ability of the society to respond to such behavior. The corporation, as the Supreme Court has said, is “a creation of the state. It is presumed to be incorporated for the benefit of the public...Its rights to act as a corporation are only preserved to it as long as it obeys the laws of its creation.” The charter is basically the contract between the cor- poration and the state acting as representative of the people. As a legal entity, the corporation is given many privileges, such as limited liability, by its charter. These privileges together with the enormous powers of money these giant companies require a modernization of the conditions and responsibilities which must be met. The charter hasn't changed much in nearly a century, but the corporate impact on society, direct and indirect, has vastly increased. The air people breathe, the safety of the products they buy, from autos to drugs, the quality of government they receive, the distribution of wealth and op- portunity—these and many others are shaped by corporate institutions. New federal charters for the 1000 largest companies would be, in effect, a new constitution for their activities. There would be new conditions for corporate democracy affecting share- holders and employees, new strictures against conflicts of interest among officers and dir- ectors, new disclosure require- ments to overcome the many costs of secrecy, explicit anti- monopoly standards to promote genuine competition and con- sumer sovereignty in the marketplace, workable en- forcement procedures and sanctions and other basic ways to let the abused and deceived obtain a more farsighted ac- countability from corporate officials. Replacing the antiquated state charter would provide affected people with the tools and information to anticipate other problems, as well, such as America’s biggest companies quitting their legal residence in the U.S. for some tiny oceanic island. Students Awarded Merit Certificates Six Back Mountain high school students were among the 79 area high school sophomores and seniors awarded National Certificates of Merit at Wilkes- Barre Campus of The Penn- sylvania State University last week. The certificates, which are given in recognition of out- standing achievement by high school students in the field of engineering and science, are awarded annually by the Luzerne County Chapter, Pennsylvania Society of Profes- sional Engineers. Presentation was made by Professors Lee A. Sweinberg, Robert Balla, and John Kolesar. v Dallas Township An ice-covered road at the early morning hour of 6:30 was a factor in a one-car accident Feb. 22. The driver of the car, Linda Maria Lerch, RD 1, Harveys Lake, was uninjured. According to Dallas Township Patrolman John T. Appel, the Lerch car was traveling south on Route 415 when the vehicle skidded into guard rails in the northbound lane. Damage was estimated at $700. A car parked in front of the owner’s residence on the Kunkle-Alderson Road was struck by a hit-and-run vehicle sometime during the night of Feb. 22-23. Sheldon L. Schell; 18, son of Mr. and Mrs. Burton Schell, RD 1, Harveys Lake, informed Dallas Township police that he parked his car, a 1966 Mercury coupe, at about midnight and that he found it damaged at 2:30 a.m. The rear of the car had been hit and the car pushed into a wall, damaging the front bumper also. Small chips of light blue: paint. were found on the damaged car. Patrolman James Gruver is the investigating officer. A Dallas young man was killed instantly Feb. 24 in a car- truck accident at the in- tersection of Routes 415 and 118. Anthony Charles Price, 29, of RD 4, Dallas, was pronounced dead at the scene at 10:15 p.m. by Richard Disque of Dallas, a Luzerne County Deputy Coroner. Coroner \ Disque re- ported the victim died of a crushed chest and multiple traumatic injuries. The victim’s body was removed to Nesbitt Memorial Hospital where Luzerne County Chief Deputy Coroner Joseph Shaver, Coroner Disque and Deputy Coroner Richard Disque 2nd conducted their in- vestigation. Mr. Price was killed when his car was struck broadside by a pickup truck. Police reported he was traveling east on Route 118 and halted for a stop sign. When he pulled out onto Route 415, his convertible was hit by a pickup truck operated by Francis Schuler, 25, of Harveys Lake. Mr. Schuler was traveling south on Route 415. The impact knocked the Price car into Bryant's Mobile Home lot for a distance of 54 feet. There were 100 feet of skid marks made by the truck, according to police records. Mr. Schuler was ‘taken to Nesbitt Memorial Hospital by his wife, Joy Schuler. He was treated for lacerations of the lips and discharged. Dallas Township police reported Mr. Price, who was employed at Charmin Paper Company, Mehoopany, was on his way to work at the time of the accident. Damage to both vehicles was Patrolmen Douglas Lamoreux nad James Gruver made the investigation, and were assisted by Dallas Borough Patrolman Sev Newberry. Dallas Borough Two cars collided Feb. 24 at 8:40 a.m. on Route 415 at the driveway to Weis Market. Apparently neither driver suffered injuries, although damage to «vehicles was estimated at $1,400. Dallas Borough Police Chief Ray Titus, who investigated, said Brunhilde L. Boyer, 105 Summit St., Shavertown, came out of the Weis Market driveway and turned north on Route 415. She lost control of her convertible-type car and went into the southbound lane of the highway. A truck, operated by Peter J. Kerporick, RD 3, Wyoming, was going north also and could not avoid hitting the Boyer car. Kingston Township A 21-year-old - Wilkes-Barre resident was injured Saturday in a two-vehicle collision on Route 309, about one-quarter mile north of East Center Street, Shavertown. Robert ‘Oakley Hale Jr. was taken in the Kingston Township ambulance to Nesbitt Memorial Hospital, where he was ad- mitted for treatment. According to police, Mr. Hale was driving a late-model Jeep from a private driveway located between Wyoming National ‘Bank and Back Mountain Lumber Company. His vehicle came out onto the highway where it struck a car on the right front fender. The car was operated by Conrad T. Hislop, 30, of 110 Church St., Dallas. Mr. Hislop told police he was proceeding north on Route 309 in the passing lane when his machine was hit by the Hale Jeep. He stated that after the impact he maneuvered his car onto the berm on the west side of the highway. A passenger, Evelyn Fiske, 30, of 235 Meadowcrest Ave., Trucksville, apparently received minor injuries. Investigating officers were Patrolmen Cliff Culver and William Pugh, assisted by C. Woolbert: Vheicles’ sustained approximately $3,000 damages. Mr. Hale has been charged with “exception to right of way.” Route 309, at Harris Hill Road, was the scene of an ac- cident between two cars Monday at 1:30 p.m. Neither driver was injured. Vehicular damage was listed at $550. Patrolman John J. Appel reported Albert Raph, 71, of 92 Tunkhannock Highway, Dallas, was traveling in the southbound lane, preparing to turn east on Harris Hill Road. A second car, driven by Peter A. Luhrs, 38, of 115 E. Franklin St., Shaver- town, was traveling north. Both cars stopped for a red traffic signal, and Mr. Raph turned in front of the Luhrs automobile, causing the collision. Jackson Township A Hunlock Creek man was injured Friday night in a mishap involving two cars and a foreign-made mini-bus on Route 29, near Ceasetown Dam, Jackson Township. Louis H. West, 44, received abrasions of the face and scalp and was treated at Nanticoke State General Hospital. Police Chief Robert Cooper reported the West vehicle and the bus, operated by Anthony Mitkowski, Hunlock Creek, collided on the roadway. The bus rolled over and ended upright against guard rails. A second automobile, driven by David Kazokas, 18, also of Hunlock Creek, was driven on the scene a short time after the collision and in attempting to avoid crashing into the other vehicles struck the guard rails. Chief Cooper was assisted by Assistant Chief Donald Jones and Partolman Andrew Kasko. Page 5 statewide interest. Bucks County Courier Times, Levittown, Pa. The state of Pennsylvania has a couple of civil servants who could and should set the pattern for all such employes of the people. We mean State Insurance Commissioner Herbert S. Denenberg and Auditor General Robert P. Casey. Both Denenberg and Casey have proved that they are not afraid to enter the wars for the benefit of the taxpayers, which is as it should be but so often isn’t. Denenberg’s recent actions including a study about health insurance complaints, his willingness to take Blue Cross to task about its proposed in- creases, his entire attitude about the role of the insurance commission in protecting and serving the public is com- mendable. Denenberg is going to face fierce pressure from the in- surance companies—they have the power and money to launch a fantastic lobbying campaign for their interests. Denenberg is gambling on the mobilization of an even greater power—the people. If this public mobilization does not take place during the commission’s open hearings on various insurance problems and legislation, Denenberg will go quickly down the drain. It will also be interesting to watch businessman Milton Shapp’s reaction to Denen- berg’s activities. Will he back his man? Public involvement, then, is and has always been the most important factor in protecting insurance-buying patrons. And, in contrast to many auditor generals of the past, Casey believes in checking into matters. In Wayne County he told newsmen that a private school for mentally retarded children received over $1 million in state money between 1966 and 1970 and that much of it had been written off by the school owners as personal expense. The school owners have filed a suit against Casey claiming harassment, embarrassment and an in- vasion of privacy. Casey says it is state money, funds paid to the state by the taxpayers and he has the right to ask these people how much they spend, where they spend the money and how they spend it. We say ‘‘amen’ to that and also to Casey’s further com- ment: “Too few people in state government are asking what is happening to state money after it is authorized. We are asking the questions now and we will get some answers.” It is encouraging to find a couple of tough cookies who are working in behalf of the people who pay their wages. Denenberg and Casey are our kind of guys. And that should apply to every taxpayer in the state. Congress Votes is issued every week that Congress is in session. It covers all votes of record and reports the position taken on each measure by the elected official whose name appears below. Daniel J. Flood 11th Congressional District, Pennsylvania Thursday, February 24, 1972 The RURAL DEVELOPMENT ACT of 1972 (H.R. 12931) authorizes a program of grants and loans to improve living conditions and employment opportunities in small towns. There was one record teller vote on a proposed amendment to H.R. 12931, after which the bill was passed by a nonrecord vote. The Dow amendment makes private parties ineligible for pollution abatement grants. Ayes 150. Noes 224. Amendment rejected, Feb. 23. MR. FLOOD VOTED NO. Whether to agree to the conference report on H.R. 12067 which provides $3.2 billion for FOREIGN AID. Yeas 213. Nays 167. Agreed to, Feb. 24. MR. FLOOD VOTED YEA. After the vote on the conference report, the House voted on amendments in disagreement with the Senate. The only record tally came on a motion to bar aid to Ecuador unless the President finds it in the best interest of the United States. Yeas 230. Nays 138. Agreed to, Feb. 24. MR. FLOOD VOTED YEA. PACE OF HOUSE AHEAD OF LAST YEAR . . . Activity in the House of Representatives measured by record votes is well ahead of last year. To date 30 such votes have been cast against a total of 22 votes during the entire 1st quarter of 1971. The in- crease is influenced by the number of bills on which action had not been completed when the 1st session of Congress ended in December. The number of opportunities for Congressmen to record their positions is expected to increase during the 2nd quarter. Last year 90 record votes were tallied in the April—June period. The voting pace during the last half of 1972 may differ from the same period a year earlier because of the national con- ventions and fall campaign schedules. The House leadership has planned a two-week break in July for the Democratic Party Convention with a like break in late August for the Republican National Convention. Final ajournment may occur during the 3rd quarter of this year. Record Votes in the House of Representatives during 1971 for each of the four quarters: 1st 2nd 3rd 4th Yea and nay 17 66 53 76 Record teller 5 24 21 58 Total 22 90 74 134 Calling 1971 ‘‘a year of change and challenge . . . which gave impetus to a new era in Blue Cross history,” Ralph S. Smith, president of Blue Cross of Northeastern Pennsylvania, highlighted the corporation’s achievements during the past year. His comments were made before the 32nd annual cor- poration meeting held Feb. 24. Mr. Smith commended the Association’s increased in- volvement in helping to reduce hospital costs, pointed out that Blue Cross enrollment and supplementary major medical coverage had increased sharply, and noted that the corporation had administered nearly $84.5 million in record payments for health care for its members and others eligible under state and federal health benefit programs. The meeting also marked the first time in regional Blue Cross Plan history that an area woman was elected to its board of directors. She is Mrs. Granville C. Smith, 921 Pine St., Scranton. Board members re-elected were George T. Bell, chairman; Ralph S. Smith, president ; Hon. Frank L. Pinola, senior vice president; Atty. Andrew Hourigan Jr., vice president; Harry Dickstein, vice president; Atty Frank Townend, treasurer, Richard W. Guckelberger, secretary. =
Significant historical Pennsylvania newspapers