Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-10-06
Former Stockholders Of etc
Asked to Buy Wo|fson Firms
Deal Involves
Ohio Industries
In Reinvestment

Inc former stockholders of
the Capital Transit Co. now or.
ganized as the Universal Corp.
will be asked to approve the
purchase of two industrial firms
from the far-fiung financial
empire of Louis Wolfson.
This was disclosed today in a
brief announcement by Univer-
sal, the corporation formed last
August 16 for the purpose of
lre-inveSting about $13.5 million
in assets realized from the
switch in ownership of the city
transit system.
The proposed deal, involving
an undisclosed amount of money,
would be the first investment of
funds by Universal.
The Wolfson interests control
about 38 per cent of the Uni
versal stock. The two firms
recommended for purchase by
Universal are subsidiaries of
Merritt-Chapman S5 Scott Corp,
which Mr.. Wolfson controls.
Ohio Firms Named
The short statement quoted
James Mullaney, Universal Corp.
president, as Saying the Uni
versal directors have voted to
recommend that the stockhold-
ers approve the purchase of the
assets of Marion Power Shovel
Co., and its subsidiary, the Os-
good Co. both of Marion, Ohio"
1t added:
1.-THE financial details of the
transaction will be announced at
the time notices of a special
meeting called for the purpose
of considering such purchase are
forwarded to Universal stock
holders" Mr.. Mullaney said.
A Universal spokesman said
Mr.. Mullaney is a resident of
Jacksonville, Fla, and is associ-
ated with the Wolfson interests
there. as are other chief officers
of Universal. The other officers
include E. B. Gerbert, vice pres
Iident and treasurer, and M. c.
lTomberlin, secretary, both Of
Jacksonville.
Sale Plans Seen
Published reports during the
last few weeks have disclosed
that Merritt Chapman g. Scott
was considering sale of the two
Ohio subsidiaries, apparently as
part 'of a major revamping of
the Wolfson holdings.
Mr.. Wolfson released a State
ment saying that "a competitive
factor" was a major reason for
Merritt Chapman's decision to
sell the Marion Power Shovel
and Osgood subsidiaries.
The statement explained that
Merritt-Chapman recently has
greatly increased its activities in
the road-building field. Merritt
Chapman, therefore, is in COM
petition with other road build
ers who are potential customers
of the two Ohio subsidiaries,
which produce bodybuilding
equipment.
Under the circumstances"
Mr.. Wolfson said. 1T was con-
sidered that as operating units
of Merritt-Chapman d. Scott.
Marion and Osgood could not
realize to full advantage the ex-
banded market resulting from
the current Federal road build
ing program"
Acquired Stock in "a
Merritt-Chapman acquired the
two Ohio firms in 1854 through
an exchange of stock. and now
holds more than SO per cent Of
the stock in both companies.
A Merritt-Chapman spokes-
man declined to state the COM
'panies' values. Published estl-
mates, however. have put the
acquisition Of the two companies
in 1854 at cost Of about sos
million in Merritt-Chapman
stock.
Mr., Wolfson. former board
chairman of the old Capital
Transit Co., recently disclosed
he is selling rapidly all the
$4,000 shares of Montgomery
Ward 81 Co. stock, which he
acquired in his losing fight to
gain control Of that firm. He
was quoted as saying he wanted
to use these funds for his "oVn
company. or special situations"
Sold Steel Firm
Mr.. Wolfson few weeks ago
sold Newport Steel Corp, the
main part Of Merritt Chapman
81 SCOTS steel division. Along
with the two Marion companies.
Merritt Chapman also is con-
sidering sale OF the Highway
Trailer Co. OF Edgerton, Wis.
Disposal Of these three firms
repeatedly would close out Mer-
lritt-Chapman's heavy equipment
department.
Other Merritt-Chapman sub
salaries already disposed Of
ltnis year include Nesco, Inc;
Utah Radio Products Co, Inc.
and shoup Voting Machine
Corp.
Meanwhile. Mr.. Mullaney said
that If the assets Of Marion
Power Shovel and OsaDod CO.
are purchased both firms VIII
continue operations as at pres
.ent with no change in manage
ment or personnel
Universal repeatedly has about
$4,000 stockholders. about half
Of them in the Washington
Iarea. Uuiversai's assets include
500 million In cash and 49,
nan mn -