K-F Payoff

When stockholders of Kaiser-Frazer Corp. sued company officials for $50 million two years ago, Henry Kaiser protested that it was a scheme to put him out of business. The stockholders charged that they suffered financially by "manipulation" of assets among various Kaiser companies. Though Henry denied any wrongdoing, he offered to pay $1,379,503 into K-F for machinery bought by K-F, but used by other Kaiser companies. Many stockholders called the sum inadequate.

Last week in Detroit, Federal District Judge Frank A. Picard ordered the stockholders to accept the offer, and accused those who held out for a larger sum of "trying to cause Henry Kaiser's financial eclipse." Said Judge Picard: "Kaiser was the victim of his own paternalism in trying to make the K-F company a success," and was innocent of any "fraud, deceit, collusion or any wrongful act."

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