Gray's Eminence

Born on a Georgia farm, Harry J Gray studied journalism at the University of Illinois, won a Bronze Star as an infantry captain in World War II, and then, as advertising manager for a Chicago car dealer, pioneered the gimmick of having the dealer do his own radio commercials. One cold and icy night a decade ago, when Gray was a senior vice president of Litton Industries, he cracked up his motorcycle, fracturing a hip and a leg. Though laid up for eight months, Gray did not miss a day's work. Into a hospital room next to his own he moved a secretary, files and phones, and he continued to run the company's electronics-components division.

Now 53, Gray has not slackened his pace a bit since he left Litton in 1971, when it appeared that he would have to wait too long for Chairman Tex Thornton and then President Roy Ash to step down. Gray moved to the presidency of Connecticut's United Aircraft Corp., world's largest maker of jet engines (Pratt & Whitney). Today he is launching a major diversification for the $2 billion-a-year company. Last week United made a deal to swap $750 million of its stock for the Signal Companies, headquartered in Beverly Hills. Signal had $1.5 billion in sales last year from drilling oil and gas, manufacturing Garrett gas turbines and aerospace gear, and making Mack trucks. If shareholders and trustbusters approve, the deal will make United the nation's 24th largest manufacturer.

The tie-up will help United reduce its dependence on federal contracts for 51% of revenues. Signal shareholders, who have seen earnings dwindle from $90 million in 1968 to $41 million last year, will start receiving dividends more than triple Signal's present 50-c- a share. Some Signal directors were reluctant to team up with United; the firm took a $44 million loss in 1971 because of difficulties in making the Boeing 747 engines. But United Aircraft's juicy dividend and Gray's indefatigable energy won them over. Signal President Forrest N. Shumway and Chairman William E. Walkup will join the United board. Harry Gray, who continues as chief executive, will remain in the driver's seat.

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