New-York tribune., 1900-04-29
GATES COMING RIGHT BACK
RETURNING TO NETWORK TO ANSWER
COURT SUMMONS.

STEEL AND WIRE COUNSEL TALKS OF
PROSECUTING PEOPLE BRINGING
THE PRESENT PROCEEDINGS.
Wall Street has been looking forward to May
Z as a date of peculiar interest, for that day
the directors of the American Steel and Wire
Company are to meet again. and it has been
the general belief that then the resignation of
John w. Gates chairman Of the Board would
be offered and accepted, it, irdeed. he should not
sooner announce his purpose to retire. But the
Street will not have to wait until May for
Mr.. Gates's temperance in this town, whence
he departed Wednesday for his home in
Chicago. Word having been sent to- Chicago
that summonses had been issued by a. city mag
istrate there for Messrs. Gates and Lambert on
a charge Of having violated a section of the
Penal Code. the answer promptly returned
that they would come East the
charges, and Max Pam. general counsel of the
American Steel and Wire Company. who had in
tended to start yesterday morning for the West
decided await their arrival here. and issued
this statement:
criminal proceedngs against Mr.. Gates and MI
Lambert cannot remain unnoticed. There is abso-
in my Judgment an ulteror motive prompts what
Mr. Gates and Mr. og embert Nave been advised or
this matter and will leave Chicago $ be here
process whatsoever ena bling any person making
any complaint TO have immediate trial Counsel
have been employed who will only look after
their defence but will look to the vigorous prose-
A dispatch from Chicago last night said that
Messrs Gates and Lambert had started for this
city, and would arrive here to-day.
I'VE know nothing about any criminal pro-
ceedngs against Mr.. Gates said another rep
resentative OF the American Steel and Wire
Company yesterday. Mr. Gates left this city
because he had important engagement in
Chicago not because he afraid Of anybody
or anything. 1 cannot say whether Mr.. Gates
will resign his office at the next meeting but If
he does it will be because he wants TO. not be-
of any pressure that may be brought
against him.
The section of the Penal Code which Messrs
Gates and Lambert are alleged to have violated
is follows:
poration or Joint stock association Who KNOWINGLY
concurs in making publishing any written report.
exhibit statement of affairs, or pecuniary
condition, containing any material statement which
is false is guilty of a misdemeanor
This offence is punishable by not more than
one year in State prison. a fine of not more
than $780, or both
The proceedings against the Steel and Wire
officials outcome of the recent move Of
the management in suddenly closing down
twelve of the company's mills at a time when
investors in the stock confidently believed that
the company's business in an exceedingly
fourishing state; the value of the company's
common and preferred stock being once ad-
verseIy affected. The first complainant was
Washington Seligman. of the Stock Exchange
firm of Seligman & Van Antwerp. whe early
in the week obtained a summons against Mr.
Gates. Subsequently Mr.. Seligman withdrew
and other complainants secured summonses
against both Mr.. Gates and President Lambert
Mr.. Seligman said yesterday:
Il secured a summons against Chairman
Gates from Magistrate Zeller. but Mr. Gates
could not be found. and the request OF my
people who assured that Mr.. Gates would
resign the craftsmanship May 7, l retired
from the matter l have heard that other peo-
ple among whom is a member of the Stock Ex-
change, are contemplating further action. Asso-
ciated with Lamb & Voss is ex-Justice Joseph
f. DAILY. 1t is the beginning of a crusade against
Gatesism and Lambertism The investing pub
lie are heartily disgusted with their methods
Members of the Stock Exchange congratulated
me on the floor of the Exchange to-day for my
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