The Answer

Five years ago Manhattan's Rupert T. Zickl, 59, went into Virginia-Carolina Chemical Corp. as a management consultant to help get its business squared away. Consultant Zickl, now a vice president of Bartram Bros. Corp., a director of V-C and owner of 17,500 shares of common stock, soon decided what was wrong with the $33 million fertilizer and chemical company. It was the management. Last week, by a vote of almost 2 to 1 at a special meeting in Richmond, Va., Zickl's independent stockholders' group ousted President Joseph A. Howell and five other directors from the board, took over a company that has 41 plants in 18 states. On the new board were Zickl and six new directors, including Virginia's former Governor John S. Battle.

What angered the insurgents was the fact that Virginia-Carolina's sales in 1955 were down 9.3% to $77 million annually. In the past nine months V-C profits slipped 50% to $329,000. Furthermore, V-C had never paid a dividend to common stockholders, while funneling out $17 million since 1946 to preferred stockholders (largely Allied Chemical & Dye Corp., also a good customer). Insurgents also criticized the fact that President Howell had a big stock option in addition to his $78,000 annual salary, reportedly made more than $100,000 in the past 20 months.

At week's end Rebel Leader Zickl, who was recovering from a stomach operation in his White Plains home and failed to make the annual meeting, still had no word to give on exactly what he planned for the company. The only certain change was that President Howell, whose contract has seven years to run, was out.

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