The Bank of America's LAAD Partners
Below are descriptions of the Bank of America's partners in the Latin American agribusiness Development Corp. (LAAD). In parentheses following the companies' names are their headquarters/ rank...
...Thomas), 1968 *Branch offices[Note: The following instructions are taken from a Bank of America promotional packet, "Advertising for Bank of America Overseas Branches...
...Now let your money work for you...
...Through its Latin American headquarters in Coral Gables, Florida Dow maintains sales offices in Colombia, Argentina, Venezuela, Peru, Mexico, Ecuador, Brazil, Puerto Rico, El Salvador and Chile and production facilities in Colombia, Argentina, Mexico, Brazil, Ecuador and Chile...
...In 1969 the company changed its name to CPC Int'l...
...and 30 percent of the overseas market ( the percentages would be higher if only big machines, Caterpillar's specialty, were counted...
...The descriptions include relative size within their industry, major products, Latin American operations, and relationship to the Bank of America and each other when such a relationship is known...
...In a recent report (June 1970) Dow's chairman revealed that "the strongest part of the company's current business is its overseas business...
...In addition to local distributors and dealerships the company's Latin American operations are conducted through a Panama-based trading company, a production plant near Sao Paulo, and a replacement parts factory in Monterrey, Mexico...
...Its five major cornderived products are starch, syrup, sugar, oil and farm animal feeds...
...The company's foreign operations have provided most of its growth since World War II...
...You work for your money...
...Consult your local legal counsel for proper arrangements...
...in which for more than two decades we have allocated the greatest part of our capital expendi-- 7 - tures and promotional outlays...
...PC-3 PRIMER CAMPAIGN "PRIMER" CAMPAIGN Service: Appeal to: Media: Note: Savings...
...In Honduras the company owns 241,000 acres...
...Each person should clearly typify an important group of prospects: farmers, retailers, business women, etc...
...C.), 1959 (FIASA), Guatemala City, 1968 Plazuela Espana (G...
...Majority-owned subsidiaries in Honduras also operate two breweries, a soft drink bottler, a soap plant, a vegetable oil factory, a small steel mill and a box-making factory...
...Its largest commitments (20 percent of total) are in the agriculture, fishing and food processing sector...
...People know you're a responsible, thrifty person...
...balance of payments-'that is, it repatriated $4.2 billion more than it took out of the United States to invest overseas...
...Be sure to obtain a Release Form - signed and witnessed - from each person, granting the Bank unlimited use of his (her) photo for commercial purposes in exchange for an agreed-upon payment...
...In Latin America the company operates production facilities in Mexico, Venezuela and Costa Rica, from which it distributes baby food throughout the area...
...Overseas sales growth (up 9.1 percent in- 6 - 1969) is greatly outstripping domestic sales growth...
...for Gerber's special relationship with this other LAAD partner...
...GERBER PRODUCTS CO...
...Out of total sales of $1.7 billion in 1969 dairy operations accounted for 44 percent, foods 33 percent, and chemicals (especially fertilizers, food packaging and plastics) 23 percent...
...In Latin America, in addition to local distributing agencies, the company operates major production facilities in Mexico (chemicals and plastics), Argentina (chemicals and plastics), Colombia (nylon) and Venezuela (petroleum...
...IV #3, May-June 1970, pp...
...Warner, Exec...
...The company's chairman, W.A...
...Minneapolis) This multinational commodity and food processing company has grown from a midwest grain firm to a world leader in farm products trading, especially in the area of grains and the production of vegetable proteins and oils...
...Farmers, housewives, clerks, small merchants-everybody in COUNTRY NAME can benefit by using a bank...
...Cargill is probably the primary exporter of U.S...
...of Commerce Trade Lists, and assorted clippings...
...C.), 1968 Honduras Tegucigalpa, 1966 Almacenes de Deposito, S.A...
...New York/ #54/ $1.7 billion/ $1.06 billion) Borden is the largest U.S...
...It's products can now be found in supermarkets in 100 countries...
...BORDEN INC...
...Midland, Michigan/ #49/ $1.7 billion/ $2.6 billion) The fourth largest chemical company and the second largest producer of plastics in the United States, Dow is a leading word producer of agricultural chemicals, pharmaceuticals and food packaging materials -- though it is probably best known as a major supplier of napalm, herbicides and defoliants for the Vietnam war (it also operates the Rocky Flats nuclear test grounds in Colorado for the Atomic Energy Commission...
...company's entire sales and foreign operations will take up half of all the capital spending during 1970...
...To keep on top of fluctuations in the highly volatile international agriculture commodities market the company maintains a comprehensive financial and monetary intelligence network centered in a chateau in a Minneapolis suburb...
...3. New York Times, March 12, 1967...
...This campaign was designed especially for use in developing nations, where relatively few people have made use of banks, and as a beginning advertising effort for de novo branches where relationships with local banks are delicate...
...Moline, Ill./ #112/ $1.04 billion/ $1.4 billion) Deere, founded 133 years ago by the inventor of the steel plow, is now the largest U.S...
...ADELA's primary role is to generate investment opportunities in Latin America for large multinational corporations and to improve the climate for foreign private investment...
...The ads are explanatory and informative to the public...
...Fremont, Michigan/ #423/ $202 million/ $115 million...
...and world producer of farm machinery...
...processor and distributor of fluid milk and also ranks as the country's fifth largest food company...
...corporation (no public stock is issued) and as such, is not required to issue public reports on its operations...
...Though Latin American sales account for only 6 percent of the $1.8 billion total sales in 1969, the Dow Latin American area sales experienced the fastest rate of growth (23 percent...
...In describing the company's business R. Hal Dean, the company's president, put it this way: "I believe it is simply to put food into the mouths of people and make a profit doing it...
...FOOTNOTES: 1. The sources for the following information are primarily corporate annual reports and prospectuses, Moody's Industrial Manual, "Food and the World's Needs" (a 1967 Merrill, Lynch Pierce Fenner & Smith report on agribusiness investment opportunities), U.S...
...In Ecuador it purchases bananas from independent contract growers...
...239 of the largest banks and industrial companies in the United States, Canada, Europe, Japan and Latin America each subscribed up to $500,000 of ADELA's $60 million in authorized capital and have paid in over $50 million...
...This is not a comprehensive listing, rather one intended to give an idea of the resources and economic and political power these companies bring to LAAD...
...It also produces breakfast cereals, raises poultry, and operates a large chain of drive-in hamburger restaurants...
...DOW CHEMICAL GO...
...in the $77 million Cia...
...Luxembourg, Zurich, Lima, Washington, D.C...
...Other major products include plastics and fertilizers...
...Through the techniques of joint ventures it attempts to break down nationalist opposition to foreign capital...
...Middle through upper income groups...
...LAAD), Panama City, 1970 Changuinola, 1969 Paraguay Asuncion, 1968 Pettirossi (Asuncion), 1968 Peru Lima, 1966 Uruguay Montevideo, 1969 Venezuela Caracas, 1963 Virgin Islands Christiansted (St...
...CARGILL INC...
...It also runs a fishing fleet in Peru...
...The company's principal fishing facilties in Latin America are in Ponce, Puerto Rico, Manta, Ecuador and five cities running the length of Peru...
...Approximately 18 percent of Deere's $1 billion sales in 1969 were made outside the United States and Canada...
...please let us review the ads before you use them, however...
...Cargill is Argentina's leading exporter of wheat, barley, maize and other grains and has entered the livestock and poultry feed business...
...1966 City, 1968 Colon, 1966 Latin American Agribusiness Development David, 1967 Corp...
...In a bank...
...Aside from investing its own capital in a given project (usually a small percentage of the total capital required) ADELA gets its member corporations to also invest and share in the management, and in addition, secures loans from its member banks and from such international lending agencies as the Inter-American Development Bank and the World Bank's International Finance Corp...
...4. Wall Street Journal, July 24, 1970.-9BANK oFAMERI CATSA LATIN AMERICAN BRANCHES, REPRESENTATIVE OFFICES, AFFILIATES AND SUBSIDIARIES Representative Offices Country: Branches (& year founded): Affiliates and Subsidiaries (& year founded): (& year founded): Argentina Buenos Aires, 1960 Rio de Janeiro, 1954 Plaza Libertad (B.A...
...Peoria, Ill./ #42/ $2 billion/ $1.6 billion) This giant earthmoving and construction equipment manufacturer accounts for 40 percent of the U.S...
...Castle and Cooke also owns Dole Co., the world's largest pineapple producer, Bumble Bee Seafoods (canned tuna and salmon and pet food under the Figaro label), and three sugar companies in Hawaii which in turn own 15 percent of California & Hawaii Sugar Co...
...corporations according to the Department of Commerce...
...surplus grains...
...The profit from its foreign subsidiaries in 1969 was $5.2 million or nearly 16 percent of total profits, and this does not include income from its export sales...
...Of the present $5 billion "free world" market for this equipment approximately 80 percent is in the United States, with the overseas surface literally barely scratched...
...Illustrations shown are "rough drawings" - not for actual use, but rather to indicate the proper type of illustration...
...In the ten years from 1960-69 Caterpillar claims to have contributed $4.2 billion to the U.S...
...Gerber is a leading worldwide producer and distributor of baby foods...
...Pino Celulosa de Centro America (COPINA), which will exploit the country's richest known natural resource -- the 3 million acre Olancho forest preserve...
...The Bank of America is one of the company's registrars, that is, it keeps track of the amount of stock outstanding in relation to authorized stock -- a nominal task which is usually assigned to one of a given company's lead banks and thus is indicative of a more intimate relationship between the corporation and the bank...
...Borden distributes powdered milk under the Klim trademark in virtually every Latin American country...
...In the mid-'50's the company started building production facilties overseas and also boosting its export sales...
...In Latin America Ralston Purina's production facilities include feed plants (Colombia, Brazil, Mexico, Venezuela, Argentina, Guatemala, Jamaica, Peru, Chile, Nicaragua and El Salvador), poultry processing plants (Venezuela, Argentina, Guatemala, Chile and Mexico), breeder farms and hatcheries (Venezuela, Guatemala, Colombia and Mexico) sea food canneries (Ecuador and Puerto Rico) fish meal plants (four in Peru), a restaurant chain in Chatemala,-8and a laboratory animal breeding station on Culebra Island, Puerto Rico...
...In a bank...
...Since 1962 CPC has produced and marketed Gerber foods in Europe...
...A bank account earns you interest on your money-and it earns you the respect of everybody...
...CATERPILLAR TRACTOR CO...
...subsidiary of Castle & Cooke, Honolulu/ #235/ $442 million/ $415 million) Standard Fruit is the world's second largest producer and distributor of bananas (under the Tropipac and Cabana labels...
...Of the LAAD members five are ADELA stockholders: Bank of America ($500,000), Caterpillar Tractor ($500,000), Deere, Dow Chemical ($500,000) and Standard Fruit and Steamship Co...
...And you know that your money is always safe, always available, and al- ways working to earn more money...
...1968 Plaza San Martin (B.A...
...ALDESA), San Pedro Sula, 1967 San Pedro Sula, 1967 Comayaguela, 1968 Leeward Islands Basseterre (St...
...ADELA currently has over $150 million in investments, loans and underwritings (out of a total $187 million available capital) in 98 projects in 19 Latin American countries...
...Hewitt, a native of San Francisco who married into the Deere family, served on President Nixon's Task Force on International Development under the chairmanship of Rudolph Peterson, former president and a current director of the Bank of America...
...In recent restimony before a Senate Commerce subcommittee nutritional expert Robert Choate charged that the five leading Ralston Purina breakfast cereals -- Wheat Chex, Raisin Bran, Rice Chex, Corn Chex, and Sugar Chex -- were of little, if any, nutritional value...
...which will import Borden's Klim powdered milk in bulk from a plant in Ireland and package it for local distribution (7 million lbs/yr capcity...
...In 1963 Ralston Purina acquired Van Camp Sea Food Co., the largest producer and distributor of canned tuna sold in the United States (under Chicken of the Sea and White Star labels...
...4 STANDARD FRUIT AND STEAMSHIP CO...
...CPC operates plants in the following Latin American countries listed by order of volume of sales: Argentina, Brazil, Mexico, Colombia, Chile, Uruguay, Peru and Guatemala...
...Standard Fruit was acquired in 1964 by Castle & Cooke, a diversified food producer and land developer...
...The company's products are familiar to Latin Americans under the following labels: Maizena and Duryea corn starch, Mazola and Argo corn oil, Linit, Globe and La Perla laundry starch, Karo corn syrup, Knorr soups, Hellman's mayonnaise, Kre-Mel pudding powders, Perrin table salt, and Fruco vegetable and fruit products (in Colombia...
...The Bank of America acquired the Borden account in California in 1918 when the bank pioneered in loans on cattle...
...100,000...
...Kitts), 1968 Sandy Point (St...
...According to its 1966 annual report "far and away the greater portion of volume and profit is generated within the so-called developing nations...
...11-15 and Business Week, July 11, 1970...
...Borden had opened a condensed milk plant and wanted loans for farmers who contracted with it...
...of the bananas imported to the United States and Canada...
...corporations hold 50% of the original capital subscription...
...Louis/ #43/ $1.9 billion/ $2 billion) Monsanto is the third largest chemical company in the United States and the fifth largest in the world...
...You can send us the photos and we will prepare these ads for your use...
...Domestic profits grew 3.4 percent compounded annually over the last nine years while foreign profits rose 8.5 percent...
...Louis, Missouri/ #78/ $1.4 billion/ $676 million) Ralston Purina is the world's largest animal feed and pet food producer and the number one sea food and poultry producer in the United States...
...In addition, the company is a partner in a joint venture with ADELA (see above), the Honduran Banco Nacional de Fomento, the Central American Bank for Economic Integration, the United Fruit Co., the International Paper Co., and the World Bank's International Finance Corp...
...Dept...
...This function is usually performed by one of a given company's lead banks and is indicative of a closer but less public relationship...
...Caterpillar looks to the developing nations with their huge projected outlays for agricultural development, transportation, dams, mining, housing and other public works construction as prime areas of growth...
...balance of payments in one year (the second largest contribution of all U.S...
...The company still accounts for 40 percent of the U.S...
...Van Camp is among the top three producers of anchovy fish meal, Peru's number one export, which is.used as a protein source in animal feeds...
...La Torre (G...
...By doing so, of course, we position overselves attractively as a leader...
...C&H...
...Croix), 1968 Charlotte Amalie (St...
...since less than half its operations were in corn products (having added synthetic polymers, pharmaceuticals, aerosol packaging and consumer products) and since it derived nearly half its $1.1 billion sales and $54 million profits from 75 plants in 35 foreign countries and from marketing in virtually every non-socialist country in the world...
...2. For more on ADELA see NACLA Newsletter, Vol...
...In Honduras the company owns a railroad with about 300 miles of track, 21 locomotives and 700 freight cars...
...However, foreign sales of $952 million (mainly in the industrialized nations) accounted for nearly hail (48 percent) of the company's sales in 1969...
...In Trinidad and Tobago, Borden joined with local interests and the New Zealand Dairy Board to form Trinidad Processing Co...
...Since ADELA is backed by the financial strength and technological and managerial knowhow of the world's most powerful corporations, it has financial and political leverage far beyond its own resources...
...Today Augustine Marusi, Borden's chairman and president is a director of Bank of America, New York, the bank's international banking subsidiary...
...It was formally incorporated in Luxembourg after a lengthy feasibility study financed by the Ford Foundation...
...This center links the international offices by a computer-controlled private wire system that reaches every major spot in the world except mainland China...
...San Jose, 1968 Curacao Willemstad, 1969 Dominican Republic El Cibao (Santiago), 1968 Salcedo, 1968 Santo Domingo, 1969 Ecuador Guayaquil, 1967 Equatoriana de Desarrollo S.A., Quito, 1968 Quito, 1968 Guatemala Guatemala City, 1957 Financiera Industrial y Agropecuaria S.A...
...Ideally, each ad should be illustrated by a photograph of an actual customer of your branch...
...Newspapers and magazines...
...The bananas it grows and purchases in Honduras, Costa Rica and Ecuador account for approximately 33 percent...
...The Bank of America is a transfer agent for CPC -- that is, it handles the transfer of ownership of the company's stock when a sale or purchase is made by a broker...
...In Costa Rica 6,000 of its 31,300 acres are in banana production...
...About one quarter of its nearly $2 billion sales in 1969 were from synthetic fibers...
...Or, you can produce them locally if you have reliable facilities...
...1969 Flores (B.A...
...In parentheses following the companies' names are their headquarters/ rank in Fortune's 1970 top 500 industrials/ 1969 sales/ 1969 assets...
...BRANCH NAME BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION ADDRESS...
...1 ADELA INVESTMENT CO...
...VP of CPC is a director of the B of A's international banking subsidiary in New York...
...de C.V., Mexico City, 1970 Nicaragua Managua, 1964 Corporacion Nicaraguense de Inversiones, Bolivar (Managua), 1969 Managua, 1965 Panama Panama City, 1964 Desarrollo Industrial S.A., Panama Central Avenue (P.C...
...Croix), 1968 Frederiksted (St...
...Local banks should not regard this as overly-aggressive advertising because we are speaking out in behalf of all banks...
...They know you're handling your money in the most modern way...
...DEERE & CO...
...While Ralston Purina is a high-volume producer, the quality of at least one of its product lines has been called into question...
...It is experimenting with protein-enriched foods and plans to introduce a high-protein drink into Latin America...
...Various sporadic reports by the company, however, reveal it operates over 300 plants and offices in 38 countries (including its Tradax group of companies) and a growing ocean and barge fleet...
...corn grind and is the largest refiner and processor of corn in the world...
...CPC INTERNATIONAL (Formerly Corn Products Co., Englewood Cliffs, N.J./ #92/ $1.2 billion/ $931 million) Founded in 1906 as a monopoly, Corn Products accounted for virtually all the corn refining in the United States during its first 10 years (an anti-trust judgement broke it up in 1916...
...53 U.S...
...See above under CPC Int'l...
...The company's overseas operations claim nearly 39 percent of its total invested capital and its foreign sales have contributed as much as $1 billion to the U.S...
...11,500 of which are in bananas, 4,000 in coconuts and citrus fruits, 3,900 in bamboo, 19,300 in pasture and the rest (202,000 acres) held in reserve...
...In Mexico, the company owns three chemical and plastic products plants, a producer of ice cream mix and a manufacturer of ice cream...
...He works for his moneyand his money works for him...
...Currently foreign sales account for 40 percent of the MONSANTO CO...
...While the new foreign plants have produced defecits in the last few years, they are expected to be highly profitable...
...1969 Bahamas World Banking Corp., Nassau, 1964 Barbados Bridgetown, 1969 Brazil Banco Real do Canada S.A.,(50%) 1968 Rio de Janeiro* Sao Paulo* Santos* Recife* Chile Santiago (1967) La Vega (Santiago), 1967 Pr-nv ( nr t t-4nfon) 1Q7 A Valparaiso, 1967 Almendral (Valparaiso), 1967 Vina del Mar, 1967 Melipilla, 1967 Concepcion, 1968 Colombia Bogota, 1967 Medellin, 1968 Call, 1969 Coata Rica Bank of America, S.A...
...3 Nearly 20 percent of the company's $1.38 billion sales in 1969 came from overseas operations...
...RALSTON PURINA (St...
...Among its Latin American production facilities are chemical plants in Argentina, Brazil and Colombia, a meat processing plant in Puerto Rico, a powdered milk plant in Venezuela (15 million lbs/yr capacity) and a majority interest in Pasteurizadora de Helados Club in Caracas...
...It also merchandises, processes and manufactures animal feeds, chemicals, paint products, molasses, fishmeal and hybrid seeds Cargill is the largest privately held U.S...
...The company's directors include former Secretary of Agriculture Ezra Taft Benson (since 1961) and Daniel F. Gerber, chairman of Gerber Products Co., another LAAD member...
...Over two thirds of its 36,000 employees are outside the United States...
...Kitts), 1968 Anguilla, 1968 Mexico Corporacion Financiers S.A., Mexico City, 1952 Mexico City, 1955 Arrendadora Comermex S.A...
...With worldwide sales of $2 billion a year, this would indicate the company derives over half its income overseas...
...2 The idea for this multinational private investment cdmpany which focuses its operations entirely in Latin America, was conceived shortly after the Castro government began expropriations in Cuba...
...Borden's international division operates 55 manufacturing plants in 23 countries and markets its products in over 130 countries...
Vol. 4 • September 1970 • No. 5
