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...Ross Perot, the crew-cut Texas computer centimillionaire, was full of self-confidence in 1971 when he took control of Wall Street's ailing duPont Glore Forgan Inc., then the nation's third largest brokerage house. By pumping millions of his own into the firm and applying to its operations the data processing techniques that had made him rich, Perot vowed that "I am going to make it as solid as the Prudential...

Author: /time Magazine | Title: WALL STREET: The Perils of Perot | 1/28/1974 | See Source »

...losing Wall Street firm, Walston & Co. Then duPont Glore Forgan took over both firms' back-office operations, stock clearing, data processing and customer accounts, while Walston (formally renamed duPont Walston Inc.) ran the 143-office domestic sales arm. Both firms are now controlled by holding companies in which Perot is the dominant force...

Author: /time Magazine | Title: WALL STREET: The Perils of Perot | 1/28/1974 | See Source »

Last week it appeared that this unusual two-tiered arrangement, which Perot's associates Like to brag is an "innovative and very sound structure," was in danger because Walston continues to lose so much money. Strong but unconfirmable rumors were sweeping the securities business that Perot was seeking to merge Walston with another, sounder Wall Street firm. There were reports, too, that Perot's lieutenants had tried to sell some of Walston's branch offices to other Wall Street houses. Still another prevalent report was that some New York Stock Exchange members were urgently meeting...

Author: /time Magazine | Title: WALL STREET: The Perils of Perot | 1/28/1974 | See Source »

...Perot has been sued by Nella A. Walston, widow of the founder and a major holder of Walston stock. She charged that Perot and his partners seized control of the firm in order to use its capital to cut their multimillion-dollar losses in duPont Glore Forgan. into which they had poured at least $65 million. She asked the court to declare the semimerger null and void and to put both Walston and duPont Glore Forgan into receivership...

Author: /time Magazine | Title: WALL STREET: The Perils of Perot | 1/28/1974 | See Source »

Associates of Perot privately concede that Walston is in trouble but argue that it is not so bad off as rumors would have it. Last week the Wall Street Journal reported that the firm's ratio of total indebtedness to net capital was about 6 to 1 in December, compared with only a 3-to-l ratio on Nov. 30. Under New York Stock Exchange rules, member firms may not have more than $15 in debts for every $1 in capital. If the ratio becomes as high as 10 to 1, the N.Y.S.E. prohibits the firm from expanding. Although...

Author: /time Magazine | Title: WALL STREET: The Perils of Perot | 1/28/1974 | See Source »

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