Old Sue-&-Settle Man

A decision handed down last week by the U. S. Supreme Court showed that Old Man Venner is still at it. He knows what courts are for--rich old Clarence Venner does. They exist for the purpose of enabling a smart fellow to annoy his neighbors, especially when, as in these days, his neighbors are big corporations.

For half a century, Old Man Venner has been bringing suits, winning almost none of them and making money out of all of them--or nearly all. Shrewd lawyer, he first buys a few shares in a company, then ploughs his way through charters, bylaws, reorganization plans, indentures, until he turns up a crop of legal weeds. Company officials are duly informed of irregularities. If they do not see fit to buy up his stock at a thumping good price, into the courts goes Old Man Venner, pleading the cause of a poor, downtrodden minority stockholder.

August Belmont once stated on a witness stand that James Jerome Hill's Great Northern had paid Old Man Venner between $1,000.000 and $2,000.000. For Mr. Vernier's $30,000 par value of a short line's bonds. Union Pacific is said to have paid $300,000.

The New York Central would not "set-tle"' when Old Man Venner two years ago came complaining about the terms of its lease of The Big Four and Michigan Central. So, he had to sue. And what's more he had to take his suit to the high court of Washington. Of course the Supreme Court, by solemn decision of Chief Justice Charles Evans Hughes handed down last week, upheld the New York Central leases. But Old Man Venner was the gainer--because he had carried out his threat of suit so that the next corporation he attacks will know that what Old Man Venner says Old Man Venner means.

Once he has obtained a settlement from a company he harasses it no more. Though judges have termed him an obstructionist and a "professional privateer." he considers himself a guardian of property rights against the errors of irresponsible management.

Wall Street admits that Old Man Venner is probably without a legal peer in corporation transactions. He used to thumb over documents himself but now maintains a sizeable research staff. Intensely secretive, only he can tell how many of his big suits were settled out of court. Officials of a company with branches scattered throughout South America remember that a Venner disciple discovered he was entitled, as a stockholder, to inspect all the books--and demanded his right. After balancing the costs of transporting records from all its remote branches to Manhattan and back, the officers decided to pay the disciple's price for his few shares--$20,000.

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