Wolfson at the Door

Raider Louis Wolfson, who temporarily retired from the public eye after his unsuccessful attempt to gain control of giant Montgomery Ward (TIME, Oct. 8), was on the prowl again last week. He was casting a covetous eye on ailing American Motors Corp. ($2,994,613 loss in first quarter of fiscal 1957). Wolfson announced that he and his family have increased their holdings in the company by 110,000 shares to 350,000, giving him the largest single block, though only 6%, of the 5,670,430 shares outstanding.

Detroit gossiped that Wolfson will try to get American Motors to sell its losing Nash-Hudson auto manufacturing division, concentrate on making its profitable Nash-Kelvinator appliance division even more profitable, possibly merge American Motors with some of the firms controlled by Wolfson's Merritt-Chapman & Scott or his Universal Corp. Wolfson was mum on his plans, beyond saying ominously that "certainly some overhauling of American Motors is indicated," intends to meet with A.M.C. President George Romney this week in Miami.

The overhauling, said Wolfson, "might call for a trimming, paring and pruning of certain unprofitable operations and possibly an expansion of others." He denied that he plans a proxy fight: "We are backing management." From Detroit, harried George Romney answered in kind: "I really believe that Wolfson will help the company."

If Wolfson actually intends to try unloading the automotive division, he can probably count on help from Sol A. Dann, a Detroit attorney who leads a dissident stockholders' group, has been in touch with Wolfson and says their programs for the company are similar. But Romney believes fervently in the future of the small car, thinks his Rambler and its British-manufactured Metropolitan (sales of both are up so far this year) will be the salvation of the ailing company. Said Romney: "I would be opposed to discontinuance of our automotive activities."

Despite the friendly phrases, both sides eyed each other warily. There seemed little doubt that Wolfson was in a position to get what he wants--even to detaching A.M.C.'s auto division--if he wants to fight for it.

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