The Glass Scramble

Not in years had there been such a scramble in Wall Street for a new stock. The stock: Owens-Corning Fiberglas Corp. Price: $35.75 a share. Total shares available: 630,000. The reaction: mild frenzy.

On the opening day of over-the-counter trading, the first sale was reported at 44 1/2. Twenty minutes later the price shot to 47. By day's end, it had steadied around 44, or 23 times earnings (more than double many "blue chip" stocks).

There was good reason for the enthusiasm over Owens-Corning, a pioneer and undisputed leader of the fledgling glass-fiber industry, and still only 23.8% publicly owned. Owens-Corning Fiberglas was organized in 1938 by Owens-Illinois and Corning Glass Works, as an independent company to develop glass-fiber products. In 13 years, its sales have climbed from $3.8 million to 1951's $97.4 million; net profits to $6,064,750 or $1.93 a share on the new stock basis. President Harold Boeschenstein, who has been pushing Owens-Corning since its birth, estimates that the whole glass-fiber industry amounts to only $120 million in sales, 81% by his company. "But within five years," he predicts, "it is quite likely that industry sales will get up to $300 million."

Back in the '30s, Owens-Illinois and Corning Glass spent more than $7,500,000 on research into glass fiber, although neither company invented it. The threadlike glass was made in London over 100 years ago; a jacket woven of coarse glass fibers was displayed at the Chicago World's Fair in 1893. Owens-Illinois got commercially interested in glass fiber in 1931, when Chemist Games Slayter stumbled across a way to make fluffy glass fibers which could be used for insulation. In 1938 Owens-Illinois and Corning Glass formed Owens-Corning Fiberglas, split 95% of its stock between them and held 5% for purchase by the new company's top management. Boeschenstein, who had been vice president and general manager at Owens-Illinois, went to work to find markets for his new products. He was so successful that since war's end the company has spent $50 million on new plants and expansion.

Glass fiber wool is used as insulating and soundproofing material, because it will not shrink, rot or absorb moisture; it goes into practically all refrigerators, ranges, water heaters, trucks and cars. Glass textiles are used for wiring insulation and as curtains and drapes. Three years ago a glass fishing rod was put on the market; now 10 million glass poles are in use. Boeschenstein knows how to advertise his products. In a "roving revue" the stars were an unbaked cherry pie, a quart of ice cream and a pot of hot coffee. The ice cream (wrapped in glass wool) and the pie (unwrapped) were put in an oven; the coffee pot (wrapped) in a refrigerator. When removed, the pie was baked, the ice ream still hard, the coffee still steaming.

Owens-Corning Fiberglas has never had to worry much about competition, even hough the trustbusters forced the company to license out its patents three years go. The two major independents had a total of only $9,000,000 in sales last year. Licensees Pittsburgh Plate Glass, Libbey-Owens-Ford and two others have yet to get into any significant production.

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