Famed for the nights of its stock has been Grigsby-Grunow Co., which in 1929 made more radio sets than any other company. But. after dropping to $14 1/2 during the Break, Grigsby-Grunow has been slow to recover, for radio business is risky business—or so it seems to the public after what happened to Roister, Freshman and a half-dozen others. And, in addition to risky radios, Grigsby-Grunow has decided to manufacture refrigerators, a field where General Motors, General Electric and Kelvinator present formidable competition. In 1928 General Asphalt Co. beat a disorderly retreat from this field.
But, from events last week, it was evident that not all followers of the Grigsby-Grunow fortunes have lost faith in the judgment that successfully brought them from automobile sun-visors to radio horns, from radio horns to battery eliminators, from battery eliminators to complete receiving sets. On April 4 Majestic Household Utilities was incorporated to manufacture the Grigsby-Grunow refrigerators and, later, vacuum cleaners, washing machines. The parent company received 125,000 shares; 374,950 will be sold by subscription at $25 a share. Last week Majestic Household opened on the Chicago Exchange at $44, began jumping in the same way that made Grigsby-Grunow famed. By the end of the week it had touched $69.
Majestic Household Utilities will manufacture all the parts-used in the refrigerator which will be distributed by Grigsby-Grunow dealers. Although Grigsby-Grunow holds less than one-fourth the stock in the new company, this is sufficient to insure practical control, especially when the personal holdings of the officers are considered. The price of the refrigerator has not been announced but is generally thought to be very low, possibly $100, which is $125 less than GM's cheapest Frigidaire.
President of Majestic Household Utilities is, of course, Bertram James Grigsby slight, silent, leathery-faced chairman of Grigsby-Grunow. Vice president is William Carl Grunow, round-faced, grinning, shouting, cursing president of the radio company. Since they started in 1921 with $37,500 and a desire to "manufacture something," these two men have been "the works." Mr. Grunow is the boss, the plant man. His noisy way of getting things done personifies a factory just as Mr. Grigsby's silent financial maneuvers are typical of a bank. Perhaps Mr. Grigsby's shrewdest move has been sticking with Mr. Grunow however mad his ideas have seemed. In 1927 Grigsby-Grunow stock was $25 a share. Now, twice split four for one, the original $25 would be $363. At last year's high it swelled to a fabulous $1,100.