Evening star., 1931-12-21
COMPANY CONTROL
FIGHT ST|RS WEST
Battle of Proxies Begins in
'Transamerica Corporation.
Giannini in Fray.
BY CARL G. BENJAMIN.

Special Dispatch to The Star
SAN FRANCISCO, Calf. December
Pin this State. whose residents own
a majority of the stock of the big hold
ing corporation TranSamerica. the bit
ter battle for proxies between Elisha
Walker and James A. BaCigalupi pres
ent heads OF the organization. on one
side, and the faction headed by A. P
Giannini, retired founder of the finan-
clal octopus, on the other is being fol-
lowed with the keeneSt interest.
While court action to hamper the
management'S efforts to line up proxies
proceeds, the anti-management faction
is pressing its proxy campaign with the
fervor of major political party in &C
tion. This Giannini-led faction is Or
ganized as the Associated Transamerica
Stockholders, and is conducting mass
meetings in large and small centers
throughout the State at which speakers
denounce the policies of Walker and
Bacigalupi, and ask for support to
overthrow them at the annual stock
holders meeting February Is.
Seek Injunction.
In court the Associated Stockholders
seek permanent injunction to prevent
facilities and employees of the Bank of
America of California, principal Trans
america subsidiary, from being used in
the manaGement's proxy campaign. A
hearing will be held today.
A product of the late lamented boom
years, Transamerica grew out of Mr.
Glannnls remarkable success in build
ing up the Bank of Italy-now the
Bank of America of California.
Having amaSSed a fortune in the pro-
duce business, this Italian American
came out Of early retirement and en-
tered the banking business unburdened
with bankers traditions or habits of
thought. Overcoming the foreign born
Americans prejudice against banks, he
and his associates led thousands to
open bank accounts with money for
merly secreted in stockings, behind pic
lures and in cash boxes. They built in
California the largest branch bank sys-
tenn in the country. Some Interpreters
have stated that Giannini extended the
principles of the chain store to banking,
Bank of 1talys great success led to
expansion in accord with the boom
times and eventually to organization
OF TranSamerica, with widely flung in
terestS and with Bank of America of
California merely as one of its many
subsidiaries. Thousands of Californians.
many of Italian parentage, thus became
holders of stock in Transamerica Cor
poration and transferred to it much of
the enthusiasm and loyalty they had
shown toward the Bank of Italy and its
founder.
Then came the Wall Street crash.
with its bursting of bubbles Mr.. Gian-
mini when Transamerica stock was be-
ing doomed skyward had warned his
stockholders against pushing the stock
too high. When it started to catapault
he sank some $50 900 900, according to
the present management, attempting
futilely to sustain it.
Giannini Leads Fight.
Mr. Giannini emerged from his third
or fourth retirement to lead the present
fight against the so-calleu Wall Street
group" headed by Mr.. Walker, chair
man of the Transamerica board. The
issue is the Walker policy of disposing
of control of subsidiary banks in return
for minority holdings of bank stocks.
Leaving out of consideration California
stockholders loyalty to Mr.. Giannini
the SUCCESS thus far attained by the
Giannini-led faction in gaining proxies
is perhaps most largely due to concern
as to the ultimate disposition of the
Bank of Amrica, which as the Bank Of
Italy. was the first love of many Cali
fornia stockholders.
The acrimonious battle is regretted in
many quarters, where it is felt that Mr..
Giannini and Mr. Walker, working to-
gether, could accomplish much for
Stockholders. Many regret, too, the break
between Mr.. Giannini and Mr.. Baci-
galupi, president of Transamerica and
the outstanding executive developed by
the Bank of Italy founder.
The Giannini faction claims enough
proxies to control the annual meeting,
but success in the fight, marked by bit
ter denunciations, charges and counter
charges, may swing either way during
the next two months.
(Copyrieht, 193l)