Date: 11/18/97 1:10 PM Subject: File S7-26-97 / Gerald Musich, Ph.D. I write regarding HR 944 and 945. The bill which would involve sharehgolder input on corporate contributions is to me a misguided effort. Some $7.4 billion is given to charity by corporations, at a cost of about 10% of that total. The cost of complying with what Cong. Gillmor proposes will greatly increase that cost, which is only likely to come out of the $7.4 billion. Thus, instead of $6.7 going to charity and $0.7 going to the expense of making the gifts, the ratio will dramatically change to the negative for charity. In addition, some companies are likely to drop charitable giving rather than face the possibility of shareholder intrusiveness. Publicly held corporations have boards who are responsible to shareholders. If their charitable giving gets out of line, the shareholders have simpler ways of communicating their dissatisfaction. Profitable companies give 0.85% of pretax profits -- hardly a figure large enough to deprive shareholders of assets. A far more appropriate bill would be one to requyire shareholder approval before ANY corporate contributions can be made to elected officials. Gerald Musich, Ph.D. 5350 N. Capitol Indianapolis, IN 46208 (317) 257-7975