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[the Cadre, Sept. 29, 1975, 'pgge 3 f a

The Websiérs -

'Lorne C. WebSter, was also

Ever heard of the Webster' family? Even many Canadians haven't, though Websters are practically everywhere north of the border.

A good many Canadians seem to think that U.S. corpor— ations own Canada. is because they have never heard of the Webster family. The-Websters may not own Canada, but they do own or control a mighty chunk of it. Proportionately speaking, they are’bigger in Canada than the Rockefellers are in the U.S. Their interests north of the border include Canada's biggest textile company, one of its largest and fourth—largest banks, several insurance companies and vast holdings of estate. They control Canada's biggest newspaper chain and its third—largest TV network. They are big in coal and oil and sugar dis— tribution, operatetankers and barges. They own a good deal of U.S. real estate, including Detroit's landmark Penobscot Building, and are major Massey—Ferguson stock— holders. Combined, family members control assets of at

leaSt $1 billion. Last year Howard Webster's

F.P. Publications added to its string of newspapers The Montréal Star, Canada's fourth largest. Chairman Howard Webster's name was not mentioned in the take- over announcement, even though, through his 25% interest in F.P..Publications he has effective control

of the chain.

The clan is headed by five brothers: Colin Howard, Stuart, Richard and Eric. None will talk with the press, but one of Colin's sons, Lorne, 45, dissents "I know many members of the family don't agree with me," the Montreal—based Lorne says, "but I feel operating public companies involves an oviigation to tell who you are and what you are. about."

As far as the total empire .is concerned, Lorne. told Forbes: "The brothers (his\. father and uncles) are equal partners. Each runs his own businesses, but at the same time serve on the boards of others' so that the whole family benefits."

Lorne's father, Colin, patriarch of the clan, still takes part in managing the family's original coal and fuel—oil business, which is now a separate Canadian unit of Royal Dutch/Shell. He also sits on 20 major boards, including Sun Life Insurance, Canada's biggest, where Colin's father, sen.

,papers.

a director.

Colin Webster is a power- ful fixture on many boards, such as Massey—Ferguson's. His father helped refinance Massey in the 19305, with

Maybe thatinvestment banker Wood Gundy.

The family is also a major stockholder at Hawker Sid— deley Canada (assets: $226 million), having v swapped its holdings in Canadian Car & Foundry and the Dominion Steel & Coal 7 \ Co. for Hawker Siddeley stock in merger deals. Other Webster interests include Dominion Textile, Canada's biggest textile company; St. Lawrence Cement, one of the two largest cement companies; International Paints,

‘Canada's third largest

paint company; and several Toronto-based insurance companies. Colin's wife, the former Jean Frosst founder of a large Canadian pharmaceutical company that recently was merged into Merck & Co. .

R. Howard Webster, 64, presides over Imperial' Trust Co., which in practice has served as the family holding company. Howard, gruff and jowly, has been the family's swashbuckler.

He has bought and sold dozens of companies in the U.S., still has vast real estate holdings in Calif— ornia. He controls Quebecair. Lorne describes Howard as a buyer, a builder and a hanger—on—er."

Howard's press interest has been growing in recent years.F.P. Publications, controlled through Imperial Trust, is a powerful news— paper chain with dailies in nine major cities and the largest circulation in Canada. The papers include The Vancouver Sun and the prestigiuos Toronto Globe & Mail, Canada's second and, third largest daily news- Most recently Howard moved in on Burns Foods. (annual sales: $543 million) Canada's secondelargest meatpacker and a large daily operator. , *

Stuart, 68, heads St. Lawrence Stevedoring,_a part of the old coal and oil

.business retained by the \ It unloads 3 million\

family. to 4 million tons of bulk cargo annually, handling most of the sugar coming 7 1 into the country and salt for the snowy streets of Canada's major cities: Richard, 62, runs the family's tanker and barge fleet. Eric, 58,runs the family's hardware bus— iness and warehouse chain.

The fuel—oil operation serves

'publicized.

7 .c'unaaa'.’ Hiaaea. Mame.

the northern U.S. as will as Canada.

Unlike the Rockefeller, wealth, which was founded on" a single spectaculaffenter- priseStandard 0i1—-the Web- ster empire has been built. step by step over more than a century. The first, Canadian Webster arrived from Scotland in the early 18005 and started a small ship chandlery. His son, who expanded into coal hauling and sales, dominated the rich Canadian fur auction trade and went into steel, sugar, insurance, railways and steamships, was Senator 'Lorne. ‘

Senator Lorne died in 1941. It is said that until his ‘ will was read, his heirs, the five brothers who now run the businesses, and a daughter, did not realize how rich, powerful-~and closemouthed—their father was.

Senator Lorne's will was a remarkable document. In order to keep his shares,

each of the sons had to stay in the family businesses‘ until he was 40; not until then would he come into his full inheritance. Only full- blooded Websters‘shared in

the businesses. The will' warned the sons to stick to-

gether, to hold regular family,

councils dedicated to build—

ing and preserving the pat—

rimony.

The old senator apparently, also left his sons his dour Methodist lifestyle. People- who know the family say the brothers are slow to reach for a lunch check and tip lightly. They drive their own cars, dress conservat— ively and live in comfortable but unassuming homes in comfortable but unassuming homes in Montreal, Toronto, Quebec City and Sherbrook. Their art collections, though valuable, are not When they vacat-

ion, the brothers tend to do

so at family-owned farms. the family theology,‘ostent— ation is almost as serious 7a sin as the dissipation of

capital. *

Because he is not afraid

‘of the public gaze, the pre- sent Lorne Webster is partly a break in family tradition. But only partly. Like his father, uncles and cousins,

‘ he believes devoutly that money should make money. He cut his teeth in the family fuel—oil business, Canadian ZImP0rt: but in 1965 when he was 38, he decided t0'

In-

ments and also became stock. holders in the world's Second-biggest oil company.) Partly b'ankrolled by the fam. ily, Lorne then founded Prenor Group, a financial services outfit.w»AmoMng other things,”it manages $800 million in outside mone )writes auto, fire and proper insurance in Australia. ' Lorne, backed by other. Websters, is also in real eatate. owning 35 estates~ around the world plus Mont— real's 41 story Bank of Commerce Building/and old

Windsor H0t31- Sporn Power

On the side, Lorne is,the second biggest shareholder in the Montreal Expos base- ball team (Charles Broufman 3f the whiskey family is the biggest stockholder). ' Perhaps it was this invest- ment, more than any othér, that exposed Lorne to un- Websterlike publicity. "Baseball is a funny bus— iness," he says. "Here we had canadian Import for 100 years, doing well over $200 million a year, and ; nobody ever heard of it. Then you are into baseball, doing maybe $5 million, and everybody suddenly says, 'Gee! Wow!"

Like Uncle Howard, Lorne‘ was attracted to publishing, he is a major backer of Quebecor, publisher of Le Journal de Montreal, Quebec's largest morning French news— paper, and 18 other French

"and English language pub— 1

lications. Quebecor, which recently acquired a chain of U.S. sports magazines, in— cluding Boxing Illustrated, is listed on both the Mont— real and American stock exchanges. , 0f the Webster cousins, Lorne is the odds—on favorite to succeed his father as family Chieftain. However, centrifugal forces are at work inoa family that now numbers 38 blood cousinsgin Lorne's’gener— ,ation and many many more *children in the.next gener- ation. Family ties will probably weaken as the ruling ‘brothers die out.r But Lorne feels much of the empire can still be held together. "Perhaps what my cousins

"can do," he says,‘"is go

out and do their own thing, but leave some shares in some ofrthe bigger holdings for, someone else to run." ‘

As for himself, Lorne Webster is determined to

branch out on his own.' (this devote his life to contin:

was after the fuel-oil bus— iness was sold to Royal

uing the family influence. "I'm in this for the long

Dutch/Shell. The family used pull," he says. _"Blood is.

the cash for new invest-

.\ ,_

thicker than water.9g j “a