Wheel-Deal in the Central

Robert R. Young pulled a master stroke in his fight to control the New York Central. Last week two oil-rich Texans, both close friends of Young, put up $20 million in cash and bought 800,000 shares of Central stock, biggest single block outstanding, from Cyrus S. Eaton's Chesapeake & Ohio Railway (at a profit of $2,400,000 to the C. & O.). The friendly buyers were Clinton W. Murchison, 58, of Dallas, whom Texans proudly describe as "really a wheeler-dealer," and Sid W. Richardson, 62, of Fort Worth, often called the richest man in oil reserves in the U.S.

Officially, Tycoons Murchison and Richardson, who could buy and sell the Central to each other if they wanted to, had little to say about what they would do with their stock. Drawled Murchison, as though his $10 million part in the transaction had almost eluded his memory: "We did purchase some New York Central ... It made good earnings last year, and we put our slide rule to it. It looks as if it should make much better in 1956." Richardson, even more noncommittal, said: "A man is getting in a hell of a shape if he can't buy something without people wanting to know what he's doing."

The Boys from Athens. But it didn't take a slide rule to figure out what Murchison-Richardson were doing. By buying the big block of stock, they freed it from a voting trusteeship in the Chase National Bank, where it was placed on orders of the Interstate Commerce Commission. Chase National, whose President Percy J. Ebbott had joined other Central directors in turning down Young's demand for the chairmanship of the board, might well have voted the stock against Young. Now, with his own holdings and those of friends, Young could count on 17% of the 6,447,410 Central shares outstanding.

Richardson and Murchison were both born in Athens, Texas, where they first became partners in horse-and-cattle trading. In the '20s, they speculated together in oil leases. Eventually, both struck it rich. Now each owns or controls an empire estimated at upwards of $300 million ; Richardson's wealth is even believed by some to be greater than that of Texan H. L. Hunt, estimated at $500 million or more. He owns a Texas City refinery, a string of cattle ranches, a radio and television chain, a drugstore chain, and, with Texas Publisher Amon G. Carter, the Texas Hotel in Fort Worth.

Two for the Board. Clint Murchison's financial interests range more widely, into about 100 different companies, including an insurance firm (Atlantic Life), banks, chemical companies, an office-equipment company (Diebold), a newspaper, a book-publishing firm (Henry Holt) as well as big oil and gas holdings. He has teamed up with Young on other occasions. In 1951 Murchison and Young's Alleghany Corp. each put up $1,300,000 to buy control of American Mail Line, a Seattle company which operates trading ships to the Orient. Murchison borrowed the cash for his share from Alleghany. Last January, one day after Young sold out his C. & O. interests to Eaton, Murchison paid Alleghany more than $4,000,000 for 24% of the voting stock in Investors Diversified Services, Inc., Minneapolis investment trust which Alleghany controls. Murchison also owns $7,000,000 in bonds of the Missouri Pacific, another railroad which Young is fighting to control.

This week Young announced the first seven members of his slate for the Central's board. Heading the list: Sid Richardson, Clint Murchison.

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