Into Lamb's Fold

To the executives of Seiberling Rubber Co. of Akron, something ominous seemed to be going on last summer in the corporation's stock. Ordinarily inactive, Seiberling shares were moving up on the New York Stock Exchange in a way that indicated someone was buying large blocks. The someone turned out to be Edward Lamb of Toledo, a left-wing labor lawyer turned business tycoon who has amassed a $30 million empire (24 companies, six radio and TV stations, a newspaper). When the worried second generation of Seiberlings invited Lamb in for a chat last October, he appeared, but said little. That was the last they saw of Lamb.

Last week the Seiberlings heard from Lamb again with dismay; he announced that he held 100,000 of the company's 391,430 shares of common stock, giving him effective control. The entire board of directors, including the three Seiberlings, held only 20,000 shares in April, have been buying more since; the No. 2 stockholder after Lamb has only 15,000.

Seiberling Rubber--eighth biggest U.S. rubber company--has not been doing well. Lacking the assured market enjoyed by big companies that sell directly to automakers, it has had to depend instead on chancy replacement sales. In 1954 Seiberling sales dropped 11% below 1953 to $35.7 million, its net earnings 79% to $215,789, and its common-stock earnings from $2.10 in 1953 to 2-c- per share. The company has started diversifying into plastics, and 1955 looks like a better year, with sales of $34 million and earnings of $834,000 in the first nine months. Said Lamb last week: "Seiberling affords a great opportunity for further expansion and development. We have not, however, made any suggestions of any kind concerning the management."

Capitalist Lamb's coup at Seiberling came on the heels of another victory. A fortnight ago, following 15 months of hearings and 2,000,000 words of testimony (TIME, March 21), an FCC examiner cleared Lamb of charges that he had "closely associated" with Communists in earlier years, recommended that his license to operate WICU-TV in Erie, Pa. be renewed.

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