University of Virginia Library

Peaceful Revolution

In the past few years members of what is
often called the 'establishment' have
repeatedly advised those members of our
society seeking change to work from within
the system and not to resort to violence or
destruction. In the immediate past (we all
remember the Democratic Convention of
1968) peaceful means have not been
successful. Another chance has now arisen to
see if peaceful means can yet accomplish the
goal of change. Once again, a small group of
lawyers, the Project on Corporate
Responsibility, is sponsoring a campaign to
make General Motors and Gulf Oil more
responsive to social problems and needs. As a
large stockholder in both of these firms, the
University should be directly involved in this
effort.

GM is the largest manufacturing company
in the world. In 1969 its sales totaled to
$24.4 billion. It is the epitome of American
business and corporate success. And yet, the
federal government has estimated that GM is
responsible for one-third of the nation's air
pollution and that 25,000 people will die in
GM vehicles this year. Furthermore, only 11
of GM's 13,000 dealers are black. There is
only one non-white member among the
corporation's top 50 executives. And GM is a
subscribing member of the South Africa
Foundation which works to improve world
opinion of apartheid. GM is indeed the
epitome of American corporate success.

Gulf Oil is another major American
company that is a target of the Project for
Corporate Responsibility. Gulf is deeply
involved in supporting Portugal's domination
of its colonies of Angola in Southern Africa.
Under an agreement signed in 1968, Gulf paid
$11 million to Portugal for the company's oil
rights in Angola. In 1970, Gulf is expected to
pay Portugal $5 million for those rights. Most
of that money is going to help pay Portugal's
defense budget which finances Portugal's
domination of its colonies in Southern Africa.
Under an agreement signed in 1968, Gulf paid
$11 million to Portugal in 1969 and will pay
$5 million to that country in 1970. Most of
that money is going to help pay Portugal's
defense budget which finances that country's
130,000 troops controlling its colonies.

Campaign GM is again seeking to change
GM's policies through peaceful means. It is
asking the corporation stockholders to
approve three major proposals before the
annual stockholders' meeting on May 27. The
first proposal would allow stockholders to
nominate and elect members of the Board of
Directors. At this time, only the
management's nominees are listed on the
proxies given to stockholders. The second
proposal would allow constituent groups of
employees, consumers and dealers to
nominate one member each to the Board of
Directors. Finally, a third proposal would
require GM to disclose in its annual report
data on the Corporation's activities on
air-pollution control, auto safety, and
minority hiring and franchising practices.

In the Gulf Angola Project, four proposals
are being included on the proxy ballots for
the Gulf meeting to be held April 27. The
first proposal would establish an impartial
committee to study and report on the
corporation's involvement in Portuguese
Africa. The second proposal would require
the company to disclose all of its charitable
gifts to the stockholders: A third proposal
would enlarge the size of the Board of
Directors and allow shareholders to have
nominations to the Board on the proxy
ballots. Finally, a fourth proposal would stop
the corporation from maintaining any
investments in colonial areas such as
Mozambique and Angola.

The University is the third largest GM
stockholder among educational institutions in
the nation, having 148,763 shares and so,
148,763 votes. The University also has 14,400
shares of Gulf Oil stock. Thus, the University
will have a rather sizeable say in any decisions
made at these two corporate meetings.

Much to our amusement, we have been
informed that the University's stocks are held
and managed by a corporation in Delaware
associated with William S. Potter of the Board
of Visitors. In addition, the University seems
to have a contract with the corporation that
allows the firm to make the major decisions
concerning the stock.

It seems to us that it would be in the spirit
of this institution if the University took upon
itself a matter of social responsibility. It
seems only fitting that President Shannon
should attempt to determine the community's
sentiment concerning the proper way to vote
on these issues. The vote is coming up soon.
Proxy ballots for GM and Gulf have already
been mailed to the stockholders. If the
University has already voted, it can ask to
have its proxy vote withdrawn for more
consideration. If it hasn't voted, then it
should attempt to determine the community's
sentiment.

The time has come for those members of
the "Establishment" to decide how they would
like change in this country. It can come
through peaceful means or through violence.
If we wish to use the former means, then we
must make our commitment now.