Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
Background and Comment

The stakeholder who signs either
Mr.. Avery's or Mr.. Wolfson's proxy
will calculate coldly where his own
interests lie. Few votes will be cast
either in sympathy for the aging
stag beset by the Wolfson pack or
out of o-worship for the vigorous
young man from the South. The
proxies, instead. will be given to the
man each stakeholder thinks will
guard the equity and raise the In
come Of every share.
Who is that man? The answers
above summarize the arguments the
stockholders have heard.
. The Avery group has depended
on attack. In a variety Of ways,
Mr.. Avery's supporters assert that
Mr.. Wolfson Is pirate, out to de-
stroy Wards for his own profit.
. The Woltson group also attacks,
hitting Mr.. Avery as a dotard who
needs nothing SO much as retire.
ment. But Mr.. Wolfson also de-
fends-he is not q pirate, but a
White Knight-and he promises His
chief promise is that Wolfson opera
ton Of Wards will boost dividends
and stock value.
1t is doubtful that many stock
holders wholly believe either side.
But there is plenty Of evidence that
dissatisfaction with the arch-con-
sentative Avery is widespread.
The reason for this dissatisfaction
Is simple. Ward stock is low priced,
relative to the company's worth.
Dividends have been modest at best.
Wards has slipped, saleswise, in
the last few years, while Sears Roe
buck has gained. There are many
complex reasons for this, but the
average stakeholder overlooks the
complex and accepts the simple:
Avery's In, therefore he's to blame.
II 1t were only small stockholders
who were dissatisfied, Mr.. Avery's
unpopularity would be less of q worry
for him. But the big boys are un-
happy. too. The Massachusetts, In
vestors' Trust Is an example.
Six years ago the trust had 1O4, 900
shares of Ward In its portfolio. This
made 1t Wards largest single stock
holder. Today 1t holds none.
Asked why NIT unloaded,
Trustee George K. Whitney said
last week, I'VE felt Wards policies
were not the correct ones for the
time. We thought Mr.. Avery was
wrong in his attitude toward the flu
ture and toward expansion of Mont
gomery Ward. AS q result. we turned
elsewhere for better investment"
With the advantage Of six years
hindSight, does the trust consider
its 1919 decision to unload to have
been a correct one?
"Eminently So" said MIR. whitney.
(Two other big trusts, however,
still hold Ward stock, and have de-
cided to vote 1t for Mr.. Avery.)
Bull-Market Psychology
There is another factor contribute
ing to Mr.. Avery's unpopularity.
1t is the bull-market psychology
which. In two major fights last year
New York Central and New Haven
gave the victory to the challengers.
There seems to be, In many stock
holders' minds, Q formless feeling
for the need for Q change"
But these factors do not neces-
sarily spell victory for MIR. wolfson.
For stockholders-even the most
disgruntled ones-must answer the
question that Is the key to the whole
contest:
Il Losis EIweed Wolfsoa the right mon to
run Wsrd'si
Much has been written about MFR.
Wolfson. but the definitive biog-
raphy Of the man is yet to be set
down. He is still q mystery, mainly
because he hasn't been around long
enough to jell.
He took over his first two publicly
owned corporations only four years
ago. In one Capital Transit), he
has run. into trouble from almost
every quarter but the stockholders.
In another, Merritt Chapman g.
Scott, basically o marine construc-
ton firm. he has done an outstand-
ing Job.
Mr.. wolfson has acquired o raft