Mellon Bank A The Honorable Lee Metcalf -2 November 9, 1973 As you know, there is now pending before the Congress S2234, The Institutional Investor Full Disclosure Act, on which hearings by the Banking and Currency Committee of the Senate have not yet been held. That bill would require information of the character requested by your letter. We think that the obligation of this Bank to furnish detailed information of the type requested by you should await the enactment of S. 2234. A subcommittee of the Senate Committee on Finance is also requesting information similar to that requested by you. Considering the concurrence of your request, that of the Finance Committee and the pendency of the hearings on S. 2234, we ask that consideration be given by the three committees concerned to the formulation of a single request, the response to which would serve the legislative purposes of each of the three committees. In the meantime, we would be glad to send on request photocopies of the pertinent information heretofore furnished to the House Committee on Banking and Currency. INVESTORS Diversified Services, INC. IDS TOWER MINNEAPOLIS, MINNESOTA 55402 In response to your letter of October 11, I enclose herewith a list of my company's portfolio of preferred and common stocks (taken as of the date of our last annual report) indicating the percentage of our holding in relation to the portfolio company's total outstanding stock of that issue. Unless indicated to the contrary, all common stock is voting stock and all preferred stock is non-voting stock except in the event of default. As a general practice, we exercise our voting powers. Again, in general terms, we vote our stock in a manner deemed most likely to enhance its investment value. In the absence of a significant issue, we are inclined to vote a management proxy, but where a significant issue is presented, we vote the issue on its merits. I have also included similar lists of portfolio preferred and common stocks of Investors Syndicate of America, Inc., a subsidiary; IDS Life Insurance Co., Inc., another subsidiary; and of two annuity funds (separate accounts) sold by IDS Life Insurance Co. The statements I have made above with respect to voting practices of IDS apply equally to the other companies. I call your attention to the statement by each of the two annuity funds (separate accounts) contained in the enclosed prospectuses of each fund to the effect that "The Fund does not intend to invest in companies for the purpose of exercising control or management. Sincerely yours, Roum Charles R. Orem INVESTORS DIVERSIFIED SERVICES, INC. Investments in Stock of Unaffiliated Issuers, December 31, 1972 (a) The Company organized, and is the principal underwriter and investment manager |