Concerned citizens are raising the Commonwealth Bank issue in Washington to prevent transfer of the bank’s controlling interest to a non-citizen from Saudi Arabia. Max M. Fisher declared on Tuesday that he views the developing banking situation as menacing to this country. In a telephone statement to the Jewish News Tuesday from Florida, he declared that he “will not rest in his efforts to protect the American system.”
Fisher emphasized that he considered it seriously menacing for the control of an American bank to fall into the hands of an Arab. He said it is inconceivable for an American community to permit Arabs who prevent Americans from conducting industrial enterprises in their countries to gain the control of important institutions in this country. Fisher declared that the move to invade the banking system of America and to gain control of financial institutions should be prevented at all costs. He said that he intends to appeal to members of Congress and authorities in Washington not to permit the takeover.
Saudi Arabian control of the Bank of the Commonwealth and the shock it has created in the Jewish community has developed into one of the most disturbing experiences for many in this community. Sharing the views of Fisher that it is an American and not a Jewish issue, the attainment of power by oil-rich Arabs in American financial and industrial enterprises is being viewed as menacing to this country’s economy, and the controlling interest by a Saudi Arabian in a leading American bank has another important connotation.
Jews have been barred from Saudi Arabia, Jewish members of the U.S. military forces have never been admitted to that country. It was only when the five Jewish members of the press corps that accompanied Secretary of State Henry A. Kissinger on his first visit to Saudi Arabia resisted being barred from admission with him and their fellow correspondents that Jews were able to enter Saudi Arabia.
WITHDRAWALS BY JEWISH DEPOSITORS
The Jewish members of the board of Commonwealth Bank–David Pollack and Alwyn Freeman –have not yet acted to express their protest against the sale of controlling stock in the bank to an Arab. But scores of Jewish depositors have withdrawn their funds. Freeman’s brother-in-law, Royal Oppenheim, and their families have been equally involved in Commonwealth. While Freeman’s attitude is not known, local bankers who have applauded the deal by Commonwealth with an Arab expressed the belief that he will remain on the bank’s board.
Pollack is deeply concerned over what has transpired. Biding his time, because of the many involved problems confronting Detroit and because the FDIC is not expected to act on the Commonwealth deal for possibly 120 days, he said that he will formulate his attitude a bit later, possibly at the Commonwealth board meeting on Feb. 27.
Pollack said on Tuesday that he is seriously concerned over what is happening, that he is not treating the matter lightly and that he is weighing the situation carefully. “It is for me, as it is for many others, a matter of American prestige, and I shall treat it as such,” Pollack said. “And my self-respect as a Jew inevitably adds to my viewing the situation in all its gravity.” Freeman’s father, the late Alexander Freeman, at one time was president of the bank and its majority stockholder. For many Jews the bank was among the most respected financial institutions.
MENACING SYMPTOM FOR U.S.
News of the sale of the controlling interest in Commonwealth was to have been announced on Monday. But on Friday a concerned citizen alerted the newspapers about the impending sale and the secret leaked that night. Apparently the plan to withhold the news for a few days, until a formal announcement of the sale of the controlling stock, was to prevent a rush of withdrawals. The rush started, however, on the morning after the leak of the news in the several branches that are open on Saturdays.
The Jewish War Veterans of Michigan unanimously adopted a resolution, co-sponsored by the JWV’s 34 posts in the state, condemning the sale of stock to an Arab and charging it to be a menacing symptom for America. They emphasized their protest as Americans and they saw in the development a danger to the American industrial community.
Attorney Jack Kraizman and his son Sidney asked for an injunction in Wayne County Circuit Court to block the sale, because it circumvents federal laws which prevent foreign nationals from sitting on the boards of American banks. Judge Richard D. Dunn ordered a hearing, which will be heard on Monday before Judge George T. Martin. Gaith Pharaon, who is purchasing the stock from the Richard Barnes family, was questioned by Allan Sloan, Detroit Free Press financial writer, about Saudi Arabian participation in the Arab boycott against Israel, and the Saudi policy of barring Jews from entering their country.
Pharaon replied that he was not involved in government affairs and that the exclusion of Jews was a government action. But it had been stated that Pharaon’s father was one of King Faisal’s closest advisors. Sloan was also told by Pharaon that he saw no reason why Jews should be concerned, since Mobil Oil does business in Saudi Arabia and there are Jewish members of the board of Mobil.
Pharaon’s claim that Mobil Oil has Jewish directors was not substantiated. Knowledgeable sources said Tuesday that Mobil has no Jewish affiliates at all. Henry Ford II, who attended a reception and dinner for Pharaon at the Detroit Club Monday night, said the Ford Motor Co. will continue to do business in Israel despite Saudi Arabia’s anti-Jewish boycott against firms doing business in Israel. Sources here are beginning to believe that the Commonwealth purchase will not generate a large infusion of Arab oil money in Detroit. They say that Pharaon has eight years to pay for the Barnes stock.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
