George Transfer acquisition is completed Trucking firm closed due to safety violations

February 07, 1996|By Jay Apperson | Jay Apperson,SUN STAFF

An Alabama-based trucking company said yesterday that it has completed its acquisition of George Transfer, the Baltimore County firm that was closed by federal authorities last month after being cited for hundreds of safety violations.

Malone Freight Lines Inc., of Birmingham, Ala., bought the Parkton-based company's customer contacts and has assumed working arrangements with major metal manufacturers such as Bethlehem Steel Corp. and Alcoa, said John Smith, president and chief executive officer of CRST International Inc., Malone's parent company.

Mr. Smith said Malone bought about 90 trailers from George Transfer. Some other George Transfer tractors and trailers were repossessed last weekend.

No purchase price was announced for the deal, which was spurred by the Jan. 17 shutdown order and completed Friday.

The sale apparently will mark the end of more than six decades of trucking operations for George Transfer, originally known as George Transfer Rigging. The company's assets will be liquidated and the corporation will likely be dissolved, said P. McEvoy Cromwell, chairman of Canton Investments, the parent company of George Transfer.

About 350 of the 410 owner-operators who worked with George Transfer have already begun working with Malone Freight, Mr. Smith said.

He added that more than 10 former George Transfer contractors who sought work with Malone were turned down for failing to meet safety standards.

George Transfer, described by federal authorities as the largest trucker ever ordered to cease interstate operations because of safety violations, had operated 40 terminals in 24 states, employing more than 400 drivers.

Mr. Smith said the desire to make a deal was pushed ahead by concerns that drivers and customers might abandon the crippled trucking company.

He said the purchase did not cover George Transfer's liabilities, which include more than $430,000 in fines for safety violations.

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