SEC Orders GM to Alter Proxy; Lindsay Will Support Nader Drive

The securities and Exchange Commission (SEC) yesterday ordered Gencral Motors to place two of Ralph Nader's nine "social responsibility" resolutions on its April proxy statement sent out to all GM stockholders, including Harvard.

GM last week refused to admit the nine resolutions-submitted by a group of Washington lawyers called Campaign GM-on the grounds that they did not constitute "legitimate business" proposals.

The SEC upheld GM on seven of the resolutions, but reversed the management's decision on what are considered the two major Campaign GM resolutions.

The proxy statement will now contain options for stockholders to vote for or against:

enlarging GM's Board of Directors from 24 to 27 seats, adding three representatives of the public. If the resolution passes, Campaign GM will nominate Betty Furness, President John-son's special assistant in consumer affairs, Rene Dubos, a University of Chicago environmentalist, and Rev. Channing Phillips, a Washington civil rights leader, to fill the seats at the May annual meeting.

setting up a Shareholders' Committee to study GM's impact on the national economy, environment, and transportation policy.

Lindsay Supports

On Monday, New York Mayor John V. Lindsay added his support to the Campaign GM drive. Lindsay directed the chairman of the City Employees Pension System to vote the 162,000 shares of GM stock in the pension portfolio with the Washington lawyers.

In addition, he has asked the city lawyers to file a supporting suit withthe SEC to try to get the nine resolutions on the GM proxy statement.

"The role of major corporations must be expanded in solving many of our national dilemmas such as eliminating environmental hazards and producing effective safe mass transportation," Lindsay said.

Harvard, which owns 287,000 shares of GM common stock, has already said it will vote against the proposals.

Objection

However, one of the objections raised by George F. Bennett '33, treasurer for the College, was the disadvantage of staging an all-out "proxy fight" with the GM management.

Yesterday's SEC decision allows Harvard to vote for at least two of Campaign GM's nine resolutions without entering any kind of proxy fight.