Y C 

85 Gillerr Srreer 

Harrford. CT 06105 

Phone: 86~1-525-5585 

Fax: 860-525-0416 

E-mail: ccfl?harmer.org 

hrrp:ll~?uharmcr.urgiiif 

Testimony at Federal Reserve Board Public Meeting 

Regarding Proposed Merger of 

Travelers Group Inc. and Chicorp 

Friday-, J-me 26, 1998 

I am Nancy Roberts, prtsident of the Coordinating Council for 

Foundations, 2 regionai association of more than 80 ccrporxe 

foundations and giving programs, in;le~~!e~~: foundatiox, coinmunity 

foundations and fedel-ated funds sen-ing Concecticur. Tine Councii’s 

mission is to promote and su~po.rt eff e L Ge phi:aclhropy For tile public 

good in Conne&wt. 

As head of the organizaricn rha~ s;:;~porrs , prwmes ’ data t-s;, end 

information, about the o-g?t~ti.zeJ gr~antmakii;g community ix 

Connecticut, I am In a pzitior. to ctserx and cc. 7 111 _ P r i L on t!:e ccrpO’:l” 

social investment of Travelers as weil as other corporai.e zntiries in the 

state. 

Travelers has historically been an important comributor :c organiz~ricns 

in the Hartford area that heal, educate, entertain and insFire - and it5 

support has been steadfast. 

The headquarters community usual!y receives the grcatesr corpcrxe 

support. However, after the merger of Traveiers and Prime&t, C:;-enter 

Hartford was still the beneficiary of Gzeabie corporate s11ppcrt. 

Most recent!);, within the past ix r years Travele,x has provided 

significant support through its foundation in the area of education, ircm 

early childhhood thorough college years. 

Let me give you some examples. 

Following the merger with P:imsrica, Tr ave!ers c+ckiy brought to 

Hartford the academy programs which had bees? successfti!ly prov;ded iti 

other parts of the country. The Academy of Fk;ice zr ‘X’earer High 

School not only became a success story in its own right, but Fro.:i<ed :he 

model and design that stimulated the development of other academy 

programs supported by other corporations and the state of Conn&cu in 

the two other high schools in Hartford. 
A three-year commitment to the Hartford Public Schools for instrument repair, 

replacement and music instruction provided much needed support to a neglected 

program for the cultural enrichment of children in Hartford. 

In January 1998, Travelers donated 30,000 square feet of space in their Education 

Center to the University of Connecticut for three years to support business education. 

In addition, they wili provide a scholarship fund and paid internships for high school 

and college level students. This effort exemplifies Travelers’ efforts to link educational 

opportunmes for students to job opportunities. 

In addition to the above mentioned commitments to public education, the Travelers 

Foundation contributes to community-based tutoring and mentoring programs for 

children and youth, arts and cultural programs, and hea!th programs totaling more 

than 1.4 million dollars in 1997. 

Matching gifts to educational institutions have been replaced with a program which 

both encourages and rewards employees who contribute volunteer time in their 

community. With all of the downsizing of the number of employees which has 

happened in the Greater Hartford area, one of the least discussed but most strongly 

felt effects has been the loss of volunteers in direct service and on boards of nonprofit 

organizations. In many corporations, employees have not been encouraged to 

participate outside of their workplace. 

But Travelers Volunteer Incentive Program provides a strong message that it is not 

only “ok” to volunteer but that it is important to give back to one’s community. 

Employees may request up to $1500 on behalf of the charitable organization for which 

they volunteer. And the amount received further encourages participation since 

grants are based on longevity with the organization and hours of service. In 1997 over 

60 employees took advantage of this program with an additional $30,000 contributed 

to charitable organizations. 

The nonprofit community also has benefited from Travelers’ generous in-kind 

support, including opening its space in the Education Center for conferences, 

programs and events of community organizations. One recent event for which 

Travelers provided space and technical assistance was the Greater Hartford Area Child 

Care Collaborative’s Quality Child Care Teacher Award, which recognized and 

rewarded the best early childhood teachers in Greater Hartford. 

Coordinating Council for Foundations 2 06/26/98 
The final area I would like to touch on is the Travelers’ support for the civic 

infrastructure of the Greater Hartford community. Travelers has been a founder and 

key player in important civic efforts including the Capital Region Growth Council, 

which w-as developed to stimulate economic grow-rh in the Greater Hartford region, 

and Riverfront Recapture, an effort to reconnect the Hartford area towns and cities to 

the Connecticut River. Along with the grants, in-kind and human resources, these 

civic efforts support an enhanced quality of life in the Greater Hartford region. 

In closing, I would like to reiterate that in my experience, Travelers has exhibited an 

ongoing strong commitment to Greater Hartford, and I expect this commitment will 

continue. 

Coordinating Council for Foundations 3 06126198 
TESTIMONY PRESENTED TO THE 

BOARD OF GOVERNORS OF THE FEDERAL RESERVE COMMISSION 

(Regarding the proposal by Travelers Group, Inc. to acquire Citicorp) 

By: Abdul-Raltmaan Muhammad, MS W 

Senior Vice President - Community Support Services 

Diversity Manager 

The Village for Families & Children, Inc. 

(At 33 Liberty Street, New York, New York) 

MYNAh4EISABDUL-RAHhbMN MLTHAMMAD, I AM HERE IN MY ROLE AS THE 

SR. VICE PRESIDENT FOR COMMUNI TY SUPPORT SERVICES AND DIVERSITY 

MANAGER FOR THE VILLAGE FOR FAMILIES & CHILDREN, INC, 

I AM PLEASED TO HAVE THE OPPORTUNITY TO PARTICIPATE ON THIS PANEL 

AND PROVIDE INFORMATION RELATING TO FACTORS THE BOARD IS REQUIRED 

TO CONSIDER UNDER THE BANK HOLDING COMPANY ACT. 

I APPEAR BEFORE YOU, ON BEHALF OF THE VILLAGE FOR FAMILIES AND 

CHILDREN, INC. - LOCATED IN HARTFORD, CONNECTICUT AND ITS PRESIDENT - 

MR. WILLIAM A. BARER. I EXPRESS MY APPRECIATION FOR THIS OPPORTUNITY 

TO PRESENT TESTIMONY PERTAWING TO “CONVENIENCE AND NEEDS OF THE 

COhlMUNITIES TO BE SERVED.” I WILL ALSO BRIEFLY ADDRESS OUR LONG AND 

BENEFICIAL RELATIONSHIP WITH THE TRAVELERS. 
AS ONE OF THE OLDEST HUMAN SERVICE AGENCIES IN THE COUNTRY. THE 

VILLAGE HAS BEEN AT THE FOREFRONT OF THE DEVELOPMENT AND PROVISION 

OF QUALITY SOCIAL & HUMAN SERVICE. THE VILLAGE HAS BEEN A KEY 

LEADER IN THE PROCESS OF MEETING HUMAN NEED, FOR MORE THAN 185 

YEARS. 

WITH A CADRE OF TRAINED, EXPERIENCED AND DIVERSIFY QUALIFIED 

PROFESSIONAL AND PARA-PROFESSIONAL THE VILLAGE HAS BEEN INFLUENTIAL 

IN RESEARCH TRAINING AND SERVICE PROVISION. 

OUR SERVICES RANGE FORM PROGRAMS FOR INFANTS TO THE ELDERLY. WE 

PROVIDE OUTPATIENT BEHAVIORAL AND MENTAL HEALTH COUNSELING; 

SPECIAL NEEDS ADOPTION AND SPECIALIZED FOSTER CARE SERVICES; 

EXTENDED DAY TREATMENT AND FAMILY PRESERVATION PROGRAMS; FAMILY 

REUNIFICATION AND RESIDENTIAL TEEN TRANSITION PROGRAMS; TEEN 

PREGNANCY AND FAMILY HOUSING ALTERNATIVE SERVICES; AND ADVOCACY 

ON BEHALF OF THOSE MOST NEEDY IN OUR COMMUNITY. 

WITHIN THE LAST FIVE YEARS, WE HAVE BECOME INCREASINGLY FAMILY 

CENTERED AND CHILD FOCUSED. WORKING WITH COLLABORATORS, AND 

AFFILIATES, WE HAVE BEEN SUCCESSFUL IN IMPLEMENTING SEVERAL SCHOOL 

BASED FAMILY RESOURCE CENTERS. 

2 
THESE PROGRAMS HAVE BECOME “ONE STOP SHOPPING CENTERS” FOR 

COMPREHENSIVELY MEETING FAMILY NEEDS AND IMFROVING THE QUALITY 

OF LIFE. BY DEVELOPING COMMUNI TY BASED RESOURCE. 

OUR SERVICES AND PROGRAMS HAVE POSITIVELY IMPACTED THE LIVES OF 

THOUSANDS OF CLIENTS, CUSTOMERS AND CONSUMERS STATEWIDE. SUCH 

COST EFFECTIVE BENEFITS HAVE BEEN MADE POSSIBLE IN PART DUE TO 

PARTNERSHIPS AND SUPPORTS FROM PRIVATE INDUSTRY IN GENERAL AND THE 

TRAVELERS GROUP, INC. SUPPORT IN SPECIFIC. 

THE TRAVELERS INVOLVEMENT AND SUPPORT TO THE VILLAGE HAS BEEN 

LONG STANDING AND CONSISTENT. FOR MANY YEARS, THEY HAVE MADE THE 

FINANCIAL DIFFERENCE IN OUR SUMMER ENRICHMENT SERVICES, AS A PART 

OF OUR EXTENDED DAY TREATMENT PROGRAM. IN THE MORE RECENT 

INVOLVEMENT, THE TRAVELERS HAS ‘FUNDED SEVERAL PROJECTS IN OUR 

FAMILY RESOURCE CENTERS. SUCH PROJECTS INCLUDE, BUT ARE NOT LIMITED 

TO: OUR COMPUTER LAB AT THE NORTH HARTFORD - MARTIN LUTHER RING 

FAMILY RESOURCE CENTER, PARENT EDUCATIONAL SPECIALIST AND SUPPORT 

FOR RECREATIONAL TRIPS FOR OUR CHILDREN. 
WITH SUFPORT FROM THE TRAVELERS, BOTH FINANCIAL AND HUMAN; WE 

HAVE BEEN ABLE TO MEET THE NEEDS OF CHILDREN NEEDING TUTORING IN 

THE SCIENCES; TEENS NEEDING MENTORS, MOTHERS NEEDING SUPPLIES AND 

LIVING SPACE; SENIORS NEEDING TRANSPORTATION TO SERVICES, AND 

FAMILIES FOOD AND GIFTS FOR CHILDREN DURING THE THANKSGIVING AND 

HOLIDAY SEASONS; 

VOLUNTEERS FROM THE TRAVERLERS HAVE BEEN CRUCIAL IN IMPROVING AND 

ENHANCING THE PROGRAM SITES FOR MANY. OF OUR COMMUNITY BASE 

SERVICES. NOT ONLY HAS TRAVELERS PROVIDED SERVICES AT OUR PROGRAM 

SITES, THEY HAVE MADE AVAILABLE SPACE AT THEIR LOCAL OFFICES FOR 

TRAINING AND COMMUNITY BASED PROGRAMS. DURING A RECENT ANNUAL 

UNITED WAY SPONSORED VOLUNTEER PROGRAM CALLED “ A DAY OF CARING’ 

- SEVERAL OF THE TRAVERLERS VOLUNTEERS PROVIDED AN FULL DAY OF 

SERVICE TO THE HUMAN SERVICE PROGRAMS IN THE COMMUNITY. 

THE PAST LONG TERM PARTNERSHIF BETWEEN THE VILLAGE AND THE 

TRAVERLERS, WHICH INCLUDES HUNDREDS OF THOUSAND OF DOLLARS AND 

STAFF INVOLVEMENT, LEAD US TO BELIEVE THAT A BIGGER AND BETTER 

TRAVELERS WOULD CONTINUE THE HIGH QUALITY OF SERVICES AND 

SUPPORTS, THAT HAVE BEEN PRODUCTS AND OUTCOMES OF THE PREVIOUS 

YEARS. 

4 
THEREFORE, THE VILLAGE FOR FAMILIES WOULD LIKE TO GO ON RECORD AS 

POSITIVELY SUPPORTING THE MERGER WITH CITICORP POSSIBLY LEADING TO 

THE POTENTIAL FOR GREATER CONTRIBUTION OF RESOURCES BOTH FINANCIAL 

AND HUMAN. IN OUR ESTIMATION, SUCH A SITUATION WOULD ONLY LEAD TO 

THE POTENTIAL ENHANCEMENT OF THE HUMAN CONDITION, THROUGH 

VOLUNTEER SUPPORT, QUALITY SERVICE PROVISION AND CONTINUED 

FINANCIAL CONTRIBUTION. 

SHOULD YOU HAVE QUESTIONS, I WOULD BE PLEASED TO ADDRESS THEM, 

OTHER WISE, ON BEHALF OF THE VILLAGE FOR FAh4lLIES & CHILDREN, INC. I 

AGAIN EXPRESS OUR APPROCIATIONS FOR THIS OPPORTUNITY. 
Brooklyn Chamber of Commerce 

PUBLIC MEETING REGARDING CITICORP & TRAVELERS GROUP 

Federal Reserve Bank of NY 

$& [\bp?:Jsi4 

June 26, 1998 

I am Jennifer Adolph Blum, Director of Government Relations and 

Communications at the Brooklyn Chamber of Commerce. On behalf of 

the Brooklyn Chamber of Commerce, I am pleased to offer this 

testimony-in support of 

Travelers. 

The Brooklyn Chamber is a n hprofit membership organization founded 

in 1918. Our Brooklyn businesses in ways that 

growth and improve the quality 

diverse boroughwide 

membership uniting s located throughout 

Brooklyn and beyond: Citibank has been an active Chamber member for 

almost half a century. #Jrcentl 

Natalie Abatemarco, &e&&r? +&~B$a&%FIM$tors. In fact, almost 

twq,Citi ank xecutives, Jill Kelly and 

ten years ago Jill Kelly was the first woman elected to our Executive 

Committee. 

In our view, Brooklyn, New York City and New York State would be 

hard-pressed to find a more community-minded~~~-Jponnib+e 

financial institution. Citibank has an exemplary record of community 

outreach, customer service and economic and small business 

development. The bank is a proven leader in commercial revitalization 

and a respected provider of technical assistance to small businesses. 

Citibank has funded several special innovative initiatives at the 

fl 

ooklyn 

Chamber. The bank was an early and generous supporter of ood Help, 

a free employment service created to fill the needs of small businesses 

seeking to hire and retain qualified employees. At the same time, 

unemployed and under-employed individuals are assisted in finding 

quality employment which contributes to the overall economic growth 

of Brooklyn. Good Help works in conjunction with a citywide network 

7 MetroTech Center, Suite 2000, Brooklyn NY 11201-3841 

718 875-1000 Tel . 718 237.4274 Fax 
of non-profit training and placement agencies to produce a large pool of 

job-ready applicants. We are not aware of any other employment 

service or similar program in the City which focuses on finding 

employees for small businesses. 

Citibank has also created an exciting new program run by the Chamber 

for the commercial revitalization of failing retail corridors. The approach 

of the Retail Strip Revitalization Initiative combines marketing 

assistance, physical improvements and market analysis to address the 

decline of traditional shopping areas whose stores cater to the needs of 

nearby residents. Their decline disrupts the vitality of otherwise stable 

and thriving neighborhoods. Citibank recognizes that retail strips which 

lack strong merchant associations, BIDS or LDCs to advocate on their 

behalf, coupled with increased vacancies and decreased foot traffic, 

need targeted redevelopment assistance. The commercial strip of 

Nostrand Avenue between Avenue W and Avenue Y in Sheepshead Bay 

is serving as the pilot project for this initiative. 

Finally, Citibank is a strong supporter of Brooklyn Goes Global, the 

Chamber’s international trade service. The program’s mission is to help 

businesses create new jobs by increasing overseas sales of Brooklynmanufactured goods. The program helps more than 90 Brooklyn 

manufacturers each month to increase their capacity to export by 

providing technical assistance, market research, and aggressive sales 

generation. Overseas sales for Brooklyn manufacturers result in increased 

product demand, ensure more stable business growth and add muchneeded blue-collar jobs to the Brooklyn economy. Brooklyn Goes Global is 

a model program across the country. 

The Brooklyn Chamber of Commerce supports Citibank and their merger 

with Travelers. The bank has an exemplary record as a good corporate 

citizen and an unparalleled commitment to community development. 

We believe that this commitment will continue and grow if the 

proposed merger is finalized. Thank you for your time and 

consideration. 
I 

Newsffom STATE SENATOR 

Catherine A4 Abate 

NEW YORK STATE SENATE - 27~11 DISTRICT 

For ‘immediate release: Contact: Karen Lin/Dan Lowenstein 

Friday, June 26, 1998 (212) 2984550; pager (917) 996-4220 

ABATE RENEWS CALL TO END MANDATORY ARBITRATIONS 

In the wake of a fcdcral judge’s decision to reject the settlcmcnt in the Smith Bamcy sexual 

larassmcnt suit, Senator Abate joined with advocates to under-score the need to ban 

nandatory prc-dispute arbitration clauses in cmploymcnt contracts as a condition IO 

:mploymcnt. 

“All patties should use this opportunity to create a dispute resolution system that is fair for 

workers,” Senator Abate said. “Any system that rcquircs employees to give up their right to a 

day in COW as a condition of employment is ultimately unfair and unconstitutional.” 

Senator Abate has introduced legislation which would ban mandatory arbirration in 

cmploymcnt contracts as a condition to employment. “No NW Yorker should have to cheek 

his or her civil rights at the door in order to get a job,” Senator Abate said. “‘The Employee 

Civil Rights Protection Act’ will end this discriminatory pl-actice and statt IO lcvcl the playing 

field bctwccn cmploycr and employee.” 

Abate found that: 

* ‘fhc American Arbitration Associarion. the nation’s largest arbitration trade association. 

says the companies they provide arbitration for cncompasscs nearly 4 million 

employees; 

* About 40% of companies who use arbitration force their employees to sign mandatory 

arbitration contracts, according to the Federal General Accounting Office (GAO); 

* Having saturated the securities industry, mandatory arbitration is now spreading 

rapidly into almost all other occupations; 

* More than half of all employees may be bound by mandatory arbitration contracts by 

2001, according to the General Accounting Office. 

Catherine Abate is the Ranking Democrat on tine Senate Investigations Committee.