Show Proposed Oil Company Brea BreakUp Break Up Called Dangerous to Economy Current proposals t to break breakup breakup breakup up th the nations nation's integrated oil companies threaten the security and prosperity of all Americans Amen Ameri cans according to Richard Kautz chairman of the National National Na Na- Association of Manufacturers Manufacturers Manu Manu- Manufacturers and chairman Grain Processing Corp Muscatine Iowa Legislation that thai would break breakup breakup up oil firms or on deny them the right to compete in other energy energy en en en- ergy industries would undermine undermine under under- mine Americas America's goal of in increased increased increased in- in creased energy independence Mr Kautz said Divestiture if enacted would delay domestic domes domes- tic energy development in increase In in- increase crease the nations nation's already dangerous reliance on unstable foreign oil supplies and further j jeopardize our national defense defense de de- posture Highly respected industry analysts Mr Kautz pointed out estimate that divestiture could cost the nation 4 mil- mil l barr barrels barrels' ls' ls of oil 01 per per day d y by 1085 1985 a loss los that that t could be made up only by importing mor more foreign oil oil assuming assuming we would have that option The NAM chairman also expressed ex cx- pressed serious' serious concern about the econ economic mic impact that divestiture divestiture divestiture di di- di- di would have on American Ameri Amen can business and workers Oil industry expenditures now represent 10 per cent of all US U.S. i investments vestments The un uncertainty uncertainty uncertainty un un- un certainty and confusion that would be created by divestiture certainly would cut b back ck such investments substantially Any significant reduction in oil industry expenditures Mr Kautz predicted would send shock waves through the American Amer Amer- l ican oan economy If divestiture became law its it's been estimated that in a period of about two years one million Americans could lose their jobs and arid personal personal personal per per- income could drop 50 SO billion or per household house house- hold Mr Kautz said many businessmen businessmen businessmen busi busi- are concerned that di divestiture divestiture die di- is proposed for an in in in- industry that has already been proven to be highly tive Divestiture isn't suggested because any trust anti law has been violated but because in integration integration integration in- in and diversification are now somehow supposed tobe to tobe tobe be wrong he said adding Integration and diversification are commonplace in hundreds of companies in ire virtually every major industry They are natural natural nat natA ural business structures that bring consumers lower prices and better service To deny businesses the efficiencies and proper opportunities such tra- tra l J m market maet r et structures tru i ies Af Afford afford af- af ford would in the end redu reduce e competition and raise prices There is simply no justification justification cation for breaking up Americas America's Americas America's Ameri Amen cas ca's large oil companies Such proposals may have s some me public public public pub pub- lic appeal but their effects would be to impose needless hardships on American consumers consumers consumers con con- sumers and to pose considerable consider able risk for the nations nation's security security security se se- se- se and economic inde inde- |