Coming-Out Party

Delivered to financial editors in Manhattan early this week were telegrams inviting them to send representatives at 5 130 that afternoon to Suite No. gR at the Hotel Waldorf-Astoria. Even if the reason for the invitation had not been revealed in the message, the signature alone--G. A. Ball--would have been enough to guarantee a good turnout.

Every alert newshawk knew that George Alexander Ball, the 74-year-old Muncie, Ind. fruit-jar maker, had been listening attentively to offers for the stocks by which he controlled the $3,000,000,000 Van Sweringen rail and real-estate empire (TIME, April 19). They knew, too, how for a mere $3,121,000 old Mr. Ball and his friend George A. Tomlinson, the Great Lakes ship operator, had bought that control from a Morgan banking group at the most spectacular auction in Wall Street history; how Mr. Ball had expected the Vans to make a comeback and how the two Cleveland brothers had died almost within a year of each other, leaving Mr.

Ball the dominant figure; and finally how last month Mr. Ball suddenly transferred his stock in Midamerica Corp. to a new philanthropic trust, the George & Frances Ball Foundation. Now the George & Frances Ball Foundation had found buyers for its principal investment. All that Mr.

Ball had to do was to introduce the buyers to the press.

As newshawks trooped into Mr. Ball's suite, they glanced about for some of the familiar financial faces that reports had linked to the deal--Boston's old Frederick Henry Prince, Cleveland's Cyrus Eaton, General Motors' Donaldson Brown. None was there. Talking in a corner was Erie R. R.'s Chairman Charles Leininger Bradley but he was obviously on hand to talk to his new bosses. Old Mr. Ball, neat, spare, paternal, stood chatting with newshawks, giving as good as he received, just as he did in Washington when Montana's Wheeler had him on the witness stand in the Senate railroad investigation.

Finally Mr. Ball decided it was time to pass out a brief statement: "George A. Ball today announces the sale by the George & Frances Ball Foundation to Robert R. Young of New York, Allan P. Kirby of Wilkes-Barre, Pa. and Frank F. Kolbe of New York, of its Alleghany Corp. securities held by Midamerica Corp. and its interest in the Cleveland real estate. . . . He is impressed with the sense of public responsibility possessed by these gentlemen."

Then followed another handout signed by "these gentlemen," stating that they had invested their own money, had no special interest to serve, would work for the public welfare as well as their own. The properties would continue to be managed from Cleveland as Mr. Ball desired, but beyond dissolution of Midamerica and further simplification of corporate structure, they had no immediate plans.

The identity of Messrs. Young & Kolbe was then established by their invitation to step down the corridor to another suite for refreshments. While Waldorf waiters poured drinks and passed canapes, the newshawks turned to in an effort to find out something about Messrs. Young, Kolbe & Kirby and how much they had paid.

On the question of price, they refused to talk, except to say that a "substantial amount of cash" was involved. Old Mr. Ball simply tut-tutted such a display of interest in "sordid details." Best guesses were around $8,000,000. Only real fact about the deal that came to light was that the buyers first talked to Mr. Ball last February, negotiations continuing until Saturday night. As dawn approached, the deal was celebrated with ham & eggs in a Childs' restaurant.

Since reticence on details appeared so determined, the press conference turned into a coming-out-into-Big-Business party for the new owners of the Van Sweringen empire. It was learned that Frank Frederick Kolbe and Robert Ralph Young had both been assistant treasurers in General Motors until the late 1920s, then resigned to form the New York Stock Exchange firm of Young, Kolbe & Co. with an office in Manhattan's General Motors Building. Probably the only Stock Exchange firm which ever asked (and received) permission to leave its name off the door, Young, Kolbe & Co. is a strictly private affair. Partner Young, 40, was born in Texas, went to University of Virginia, married the sister of Painter Georgia O'Keeffe, votes in

Newport, R. I. and winters in Palm Beach. A shrewd judge of the stockmarket, he remarked to reporters with his tongue in his cheek: "We're just babes in the woods."

Partner Kolbe (rhymes with Colby) went to the University of Michigan, taught economics and finance there for three years. Now 44, he is so studious that he prefers to live in the relative seclusion of Manhattan's West Side.

Young, Kolbe & Co. have stepped into limping organizations before, notably Pathe Film. For a third partner in the Ball deal they originally lined up General Motors' Donaldson Brown, but he withdrew after cogitating possible repercussions upon GM. So Messrs. Young & Kolbe turned for their heavy backing to their good friend, Allan Price Kirby, son of Fred M. Kirby, one of the founders of F. W. Woolworth Co. Young (43) Mr. Kirby tends to his family's philanthropies, is a director of a Wilkes-Barre bank, runs a few Chrysler agencies on the side. Arriving late at his coming-out party, he astonished the guests by shyly asking to be introduced to Mr. Ball.

This file is automatically generated by a robot program, so reader's discretion is required.