Suing History

Sometimes the U. S. Senate can find out more about a business than even its own officers know. In Washington last October, when Albert Henry Wiggin was testifying on stock pools, it became evident that Winthrop Williams Aldrich, new head of Manhattan's Chase National Bank, was hearing a number of things "for the first time. Mr. Wiggn's testimony was also news to Mr. Aldrich's brother-in-law, John D. Rockefeller Jr., biggest Chase stockholder. Neither Mr. Aldrich nor Mr. Rockefeller liked what the Senate turned up for them. Last week it became public knowledge that Mr. Aldrich was ready to act on his dislike by making legal war on his predecessor as head of Chase.

Facing his stockholders and reading his annual report. Banker Aldrich came to what was probably the longest and most uninspired sentence of all the long and uninspired sentences read by bank officers to their stockholders last week: "The board of directors has appointed a special committee of directors to consider such matters as may have been disclosed or touched upon at the recent hearings with reference to the bank and its affairs before the subcommittee of the Committee on Banking & Currency of the United States Senate, with authority to select, employ and consult with special counsel concerning such of these matters as may be considered to furnish grounds for a claim or claims in favor of the bank and to commission such counsel fully to investigate them." His stockholders thrilled to every syllable. Then in the same prosaic way Mr. Aldrich informed them that Elihu Root Jr., 52-year-old lawyer son of the sole surviving "Elder Statesman" of the U. S., had been retained to study--and was actively studying--whether Chase had legal ground to do something about the matter. Mr. Aldrich did not mention Mr. Wiggin, or ''former officers" or even "certain per-sons." In fact he did not even use the word "sue." This moderation in the use of words led one irate stockholder to jump to his feet and suggest that Samuel Seabury be named investigator instead of Elihu Root Jr. Mr. Aldrich replied that the directors had considered Mr. Seabury. but since the investigation spade work had already been done by the Senate committee's agents talents of different order seemed more important. Elihu Root Jr. had been picked for his experience in financial matters.

Said Mr. Aldrich: "I should say that every conceivable allegation as to negligence or misfeasance that any lawyer could think of had already been made in the suits that have been commenced."

"The suits that have been commenced" include those by various stockholders who hope to get some money out of Mr. Wiggin and the bank's directors. A stockholders' protective committee hired Lawyer Samuel Untermyer, famed corporation baiter, to start one such suit. Last week Mr. Untermyer, who does not like even a Root to steal his thunder, was sunning himself at Palm Springs, Calif. At news of Mr. Root's appointment he lashed out: "These futile devices are as old as the hills. They deceive no one. They are the invariable resort of officials who are caught with the goods, especially in big business and high finance, but they are played out. They can no longer escape accountability by going through the motions of suing themselves and marking time until the storm blows over."

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