Evening star., 1961-04-30
Allegheny
Fight Set for
Showdown
BY TRUMAN r. TEMPLE
Star staff Writer

At hand is a showdown be.
tween an urbane, reticent East.
erner-Allen P. Kirby, ALE.
ghany's board chairman-anc
two bouncy young brothers
from Texas, John D. and Clinr
w. Murchison, ir.
The battle is for control o.
Allegheny, a complex holdins
company that through shrewc
investments now controls thu
destiny Of some S6.2 billion II
assets Of other concerns.
Aside from the awesomt
value of the property, it's 8
bitter clash Of extremes. Or
one side is age CMr. Kirby /,
So; on the other youth (Johr
D. is SO, his brother 3O.
It's Eastern wealth, inherited
from the Woolworth 5-and-10.
cent stores. challenged BY
Texas oil money.
And it's conservative man.
agement trying to beat of
flamboyant SPECTATORS.
What both sides have in com.
mon is lots Of money. The
brothers MurchiSon (pro.
nounced Murk-i-son) own in.
vestmentS worth an estimated
$3.50 million. They also have
an ace in the hole, Clint w.
sr., who has vast experience ir
complex deals and many
wealthy friends.
Mr.. Kirby, their opponent, Il
personally worth about one
third of a billion dollars.
The weapon in the contest is
common stock. There are Ga
million shares to be voted
Whoever controls a majority
of them will win the right to
put his nine candidates on
Alleghany's board Of directors
According to statements filed
with Securities and Exchange
Commission in mid-April, Mr.
Kirby had 3.3 million shares
and the challengers about 2.s
million. In the share buying
spree Of the last seven months
the two sides have snapped UP
Allegheny stock now worth
nearly $40 million.
They've also spent heavily
on newspaper ads and leaflets
mailed to independent stock
holders, trying to WOO the
balance Of voting shares. (Since
only stock owned April IA or
earlier can be voted, some
spectators bought up shares
earlier, marked them for one
side or the other, and now are
peddling them at a premium.)
Counting to Take Days
Lawyers from both sides were
still meeting this week end
trying to work out details OF
tomorrow's meeting. With the
huge volume Of shares to be
counted. it's doubtful that the
victor will be announced fol
days, possibly weeks. One COM
pany spokesman said the meet
ing may recess Monday night
and resume later in the week
Haunting the whole meeting
will be the memory OF Robert
r. Young, former Allegheny
chairman. who might have
averted the struggle II he were
still alive.
Mr.. Young, who committed
suicide in 1858, was a close
friend Of both the Murchisons
and Mr.. Kirby. 1t was he who
Joined with Mr.. Kirby back in
1887 and bought control OF
Allegheny for $3.7 million, a
fantastic bargain. And he
worked closely with the MUIR
chisons, who controlled at one
time a subsidiary Of Allegheny
the Investors Diversified Serv.
ices.
Exerts Leverage
What exactly is the Ale
ghany Corp?
One Of the biggest holding
companies in the Nation, il
exerts what Wall Street likes
to call leverage on other much
more valuable companies by
owning a piece Of them.
1t holds is per cent and
working control Of the giant
New York Central Railroad
(worth $2.5 billion. 1t controls
voting stock Of IDS, an invest
ment trust managing five mu-
tual funds. IDS is worth S3.2
billionO 1t has a big say in the
Baltimore & Ohio Railroad by
owning rs per cent Of its stock
directly, and indirectly through
the New York Central's owner.
ship of 1875 per cent Of B&C
shares.
Allegheny also owns the ma.
jority Of Glass B common
shares in the Missouri Pacific
Railroad and a large interest
in the Webb & Knapp rea
estate company.
Because Of its multiple rail.
road holdings, 1t casts a shadow
over the proposed merger of the
BIO and the Chesapeake &
Ohio railroads. SO there arr
even more millions Of dollars
hanging on tomorrow's vote
since whoever wins Allegheny
will have a voice in merger
details.
On the record, the Murchi'
sons say they want to oust Mr.
Kirby because he hasn't dont
enough as chairman. Mr.. KIRBY
says the real reason is theil
wish to regain control Of thl
rich IDS. Last September h,
expelled them from the DS
board after an investigation o
their management Of it.
But there are other element