The times. [volume] (Washington [D.C.]) 1897-1901, 1900-05-06
JOHN w. GATES-IN COURT.
steel and Wire Nagnatc Make.
Answer to the Summons.

Chairman Of the Board of Directors Of the
American Steel and Wire Company. appeared
in the Tombs Police Court today in re-
spouse to a summons issued by Magistrate
Zeller at the request OF George A Lamb,
attorney for persons Who are opposed to
him and his methods OF conducting the
business of the company. The summons
to which Gates responded required him to
show cause why a warrant should not be
issued against him charging him with a
violation of section ell OF the penal code,
which forbids the director Of a corporation
from making any false statements about
it's affairs.
A similar summons was first issued at the
request Of Washington Seigman. but it was
never served on Mr. Gates. as he went to
Chicago. Before il could be served Mr..
Selgman had a conference with De Lancey
Nicol attorney for Mr.. Gates. and then
refused to press the matter. 1t was said
that one OF the reasons why Mr.. Seligman
dropped his charge was that he received
an assurance that at the meeting OF the
directors OF the company next Monday Mr..
Gates would resign Later Attorney Lamb
received a letter from De Lancey Nicoll
to the effect that such an assumption was
without foundation. and that the other side
was free to proceed in any way it saw fit.
When Mr. Lamb procured the summons
from Magistrate Zeller, then sitting in JEFF
ferson Market Police Court. the date for
the appearance OF Mr.. Gates in court was
set for May Il. But Mr.. Gates counsel
sent word to the other side that his client
desired to leave for Europe before May Il,
so the hearing in the summons proceedings
was set for today. before Magistrate Zeller
sitting in the Tomhs notice court
Mr. Gates arrived promptly at II o'clock
with his counsel. Mr.. NiColl, and John K.
Bennett. patent attorney for the American
Steel and Wire Company; Max Pam, gen
eral counsel for that company, and J. b..
Lindsay, Mr.. Nicolrs associate.
Attorney George A. Lamb was accompa
MED by Attorneys Edward Hymes and
George A. Voss. As soon as Magistrate
Zeler appeared Mr. Lamb said:
Il desire to swear TO the complaint
which here hand to your honor
After the complaint was submitted and
sworn to. Mr.. Lamb was about to make
a request for more utpOenas when Mr.
Nicoll rose and asked for a dismissal Of
the complaint Mr. Nicoll said that this
was the most absurd and frivolous case
that had ever come within his knowledge
The complaint, which had just teen filed,
did not declare an offence under the law,
Taking up the first part OF the complaint,
Mr.. Nicoil read a portion to show that
Mr.. Gates statement was not within its
purview. Did il concern the pecuniary
affairs Of the company?
NO" Numbered Mr. Nicoll, this COM
plant is too absurd to take up your hon
ors time to discuss. Here is a general
statement of Mr. Gates on the entire
trade. 1t is merely a newspaper inter
view. No director who made a statement
by himself could violate this section. Vio-
lation means concurrence in a written re-
port. Wherein is Mr.. Gage guilty Of a
violation OF the State code? No other di-
rector had anything TO do with it.. There
was no collision. Mr. Gates statement
is simply a statement by him, by a
director only who was not acting as a
director who was simply acting on his
own responsibility, making no arrange
ment with others in regard to it, making
the statement to a newspaper only. a
statement only. and certainly not a report
quoting from the penal code) of the pc
cuniaTy affairs and conditions Of the COM
pany. What nonsense to try to hold Mr..
Gates guilty Of the offence cited"
Mr.. Nicoll, in conclusion. said that Mr.
Gates must have knowingly cOncurTed"
in a report prejudicial to the company. and
he deied anyone 10 show that Mr. Gates
ndQ uOle duNluluE except On MS own re-
sponsibility as a citizen.
Mr.. Lamb replied briefly. He insisted
that the complaint itself was sufficient to
cover the section Of the code quoted. As
matter OF fact, argued Mr.. Lamb, Mr.
Gates had not only knowingly concurred
in Issuing a statement derogatory to the
interests of the holders OF the stock Of the
American Steel and Wire Company, bu.
said Mr. Lamb. Mr.. Gates actually sent
for a newspaper reporter and gave infor-
nation to him for the purpose Of causing
depression In Steel and Wire stock Was
MIR. Gates not a director OF the company
and does not the section clearly prohibit
such an act on the part Of the officer Of
the company? Was there not a statement
signed by John ". Gates as chairman Of
the board Of directors. and within three
weeks was there not a false statement
made by this defendant? I know it is
difficult to prove everything alleged seeing
that all the machinery OF a great cor
pOration is against one man
The statements Of Mr. NicOll are alb
solutely false" continued Mr. Lamb. Mr..
Gates represents the financial interests OF
the company: he is a large stakeholder,
and all communications Of the company are
made over his name. To speak Of his
statements as being blameless. because
they were made without concurrence IS
absurd. Mr.. Gates has committed a
crime, and ! think. your honor, that be
ought TO be punished
Mr. Nicoil again rose. saying: Il agree,
your honor that any citizen has the
right to make a complaint to a magis-
trate. But discussion on the question is
apart from the case. 1t has not been
shown that this complainant has suffered
in person or in property from the actions
OF Mr. Gates. He comes here on his own
responsibility And | say that your honor
cannot refer to a single similar case that
has come UP in your hOnOr's juricial eH-
pericnce when a member Of our profession
has, without warrant, endeavored to put
the criminal court in motion TO cast stigma
on an honorable citizen
When Mr. Ncoll had finished. Magis- !
trate Zeller said
4 shall let the case stand over until |
Monday. and will then take it up at 4 |
o clock. Mr. Gates wants TO go to Europe |
on Tuesday. If the charges are unfounded |
it Will be well TO let the case drop so that /
Mr.. Gates can leave on Tuesday, as ne !
wants to do"
YES. certainly" said Mr. NicolI
1t seems said Magistrate Ze.ler, that |
the matter comes down to question Of |
law ana the meaning of the word con
cur
Mr. Lamb asked for more suhpo BIT |
refused to give the names Of the witnesses |
be wanted on Monday.
J. II. kcenc RetireS From Wall street |
CHICAGO, May 5.-James r.. Keene, the !
Wall Street Spectator, has retired from
the street permanently, according to a re- |
port circulated this morning. Last week |
he sailed for Europe. The retirement Of
the Spectator is said to be due to his fail