Boss of the Empire

A year ago Chicago's Henry R. Crown, who runs the biggest U.S. building-supply firm and finds time to promote big deals on the side, got interested in buying the Empire State Building. Reluctantly, he decided it was "too rich for my blood." But he kept a watchful eye as Detroit Real-Estate Man Roger L. Stevens made a deal six months later (TIME, June 4) to buy the building from the estate of John J. Raskob for $51 million, paying $13,500,000 in cash.

Three weeks ago it looked as if the deal would fall through: Stevens and his syndicate were short about $3,000,000, and were about to lose the $1,000,000 "earnest money" already paid. Then Crown-stepped in. He agreed to put up the needed $3,000,000 in return for the biggest operating interest* (just under 25%) among the new owners. Last week the deal--the biggest building transaction in history--was closed. With that, Crown instead of Promoter Stevens stepped into the top job as chairman of the new Empire State Building Corp.

The 102-story skyscraper made quite a crown for the empire-building son of a Lithuanian suspenders-maker. Crown, who was born in Chicago, started out 32 years ago in the sand and gravel business. His Material Service Corp. now grosses $45 million a year. Most Chicago businessmen had never heard of Crown until three years ago, when he and three associates bought working control (25%) of the Chicago, Rock Island & Pacific R.R. (TIME, Nov. 28, 1949). He has also supplied much of the money behind Hotelman Conrad Hilton's buying ventures, is now the biggest stockholder (8.7%) after Hilton in the Hilton Hotels Corp. Singlehanded. Crown bought the 19-story Chicago Mercantile Building, which houses the Midwest's butter & egg exchange, for $2,500,000.

Last week, the new boss had plans to make the onetime white elephant an even bigger moneymaker than it now is (estimated 1951 net: $5,500,000). Among his changes: complete air-conditioning of the 102-story building, which now is air-conditioned only up to the 42nd floor.

*Of the total $51 million, Prudential Insurance Co. paid $17 million for title to the land, put up another $15,500,000 for a first mortgage on the building, and Raskob's estate took a $5,000,000 second mortgage for the balance.

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