A third-year law student and a Roman Catholic [WORD ILLEGIBLE] came here today to try to persuade the shareholders of Gulf Oil Corp. - enthrolled last year and in 1975 in a $12 million political payoff scandal - to put the company on [WORD ILLEGIBLE] against illegal bribery and to disclose details of its operation in South Korea.
They were among 1,3000 persons attending Gulf's annual meeting, the first held here in 10 years.
Not surprisingly, their three resolutions - the only ones before the shareholders failed - overwhelmingly Golf's management, which opposed each resolution, controlled the proxies [WORD ILLEGIBLE] 150 million shares, or about 77 percent of the total, and it voted most of them against the resolutions.
The law student, Mark Jaffe, 26, of Hofstra University Law School in Hempstead. Long Island, proposed that the shareholders request the board of directors to adopt a resolution amending Gulf's articles of incorporation by adding that "no officer, agent or person, acting on behalf of Gulf Oil Corporation" could solicit, promise to pay or pay any foreign officer or agent monies or services declared illegal by the laws of that country."
Jerry McAfee, Gulf's chairman of the board since Jan. 14, 1976, when former chairman Bob Dorsey and three other top officials were ousted by Gulf's board of directors for their involvement in the $12 million payoff scandal, insisted that "of course bribery is not a part of our corporate life" and said he took exception to Jaffe's suggestion "that it has ever been part four policy."
McAfee said he agreed with the sentiments expressed in the resolution. But he said "the most effective" way to handle the situation was the way it already has been handled, through a new management policy and dissemination of employees of a statement of principles affirming Gulf's policy of adhering to the law.
The second and third resolutions proposed by the Sisters of Loretto of Denver Colo., owners of 524 shares of Gulf's capital stock, sought specifically to forbid the company from making any political contributions or grants in South Korea "that could be reasonably construed to be political" and also to provide all stockholders with a number of details about the company's activities in Kora number of details about the company's activities in Korea, including its wage rates and a description of its dealings, if any, with Washington influence peddler Tongsun Park.
In other action, Gulf President James E. Lee reported that net profits for the first quarter of 1977 were $168 million of 85 cents per share, down 16 per cent from last year's $198 million, or $1.02 per share. Meanwhile, he said, Gulf's revenues climbed more than 11 per cent, to $4.84 billion from $4.35 billion last year.