The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-05-08
Two Directors, Henry Seligman and
Henry Frederick Straus, Tender
Their designations.
UNFRIENDLY TO MIR. GATES
WHO, THEY ALLEGE, PROMISED To
SURRENDER HIS POSITION.
All Persons Concerned I'm the Opera
lions of the Company Reticent
About the designations.

NEW YORK, May TAT to-day's meet
Ing Of the board OF directors of the Ameri-
can Steel and Wire Company Henry Selig-
MAJ and Henry Frederick Stratus resigned
from the board. Subsequently the follow
ing letter from the two men to the board
of directors was made public:
"Gentlemen-We nave to-day resigned
from the directory of the American Steel
and Wire Company because Mr.. John w.
Gates did not at to-day's meeting retire
from the management of the company, as
We had been given to understand that he
would do.
Our reasons for continuing to act as d.
rectors until now may perhaps deserve fur
ther explanation On the morning of the
April meeting of the board we received as
surances from sources on which we thought
ourselves entitled to rely that the ~resigna-
ton OF Mr.. Gates as chairman would be
offered about May 1. While IL is true that
by continuing in the board we exposed our
selves to possible mi-sconstruction, we
riSked this In the belief that by delay we
could accomplish that which every one
must recognize as demanded by the best In
terests Of the company, namely. Mr..
Gates's retirement from the management
and we realized that under the bylaws of
the company TO force Mr. Gates's retire
ment was practically impossible, and that
these assurances promised more substantial
results than the contemplated attempt to
force his immediate resignation. Mr.. Gates,
however, still continues to control the COM
pany. and under these circumstances IL be-
comes impossible for US longer to continue
In the directory; and, I'm order that the
stockholders of the company may fully un-
derstand both our reasons for continuing
In the board and for resigning from IL, we
shall give such publicity to this letter as
we may think proper
Mr.. Gates. who was seen after the meet
ing OF the board OF directors adjourned. de-
ciined to say anything regarding the resig-
nation of Messrs. Seligman and Straus.
Asked IL Thomas Dolan, of Philadelphia,
who Is said TO be In the anti-Gates con-
tingent. had been present at the meeting.
Ar. Gates declined to say. Mr.. Gates's
friends were quite as reticent as he. Max
Pam. general counsel for the company, de-
clined to make public any OF the details OF
the meeting.
Washington Seligman, who personally
preferred charges of fraud and conspiracy
against Mr.. Gates. and was later induced
10 withdraw them by his relatives in the
firm OF ]. & w. Sengman & Co, declined 70
discuss the case in any OF its phases.
What may be called an informal meeting
OF the directors was held later. Nothing of
importance was done as far as could be
"A VA 1oet1 ~ " give any
inkling OF the proceedings tina LED to the
resignation of Messrs. Seligman ard Straus.
Mr.. Gates was asked as TO the truth of the
report that he Intended leaving for Europe
OF Thursday next. He replied that IL was
quite unlikely that he would sal, on that
date. and IL was barely possible that he
would not go at all. The vacancies caused
by the resignation of Mr.. Seligman and Mr..
Stratus will be filled in a few days. accord
ing TO Mr.. Gates.
George A Lamb. the complainant against
Chairman Gates in the action charging the
defendant with having made public false
statements concerning the affairs of the
company. to-day fled his reply TO the
points raised by consel for Mr.. Gates on
the hearing on Saturday. This reply con-
tends that the charges contained I'm the
original complaint are legally sufficient TO
justify the examination OF witnesses I'm or
Ger TO determine whether or not there Is
probable cause TO conclude that the de-
PENDANT has violated the provisions OF the
penal code OF New yot State. The magfs-
trate denied the motion for a dismissal OF
the case as applied for by counsel for Mr..
Gates
The hearing OF the case against Mr..
Gates then proceeded. Henry Seligman
Identified az a balance sheet OF the Ameri-
can Steel and Wire Company, a paper that
was handed him. The paper was put in
evidence. lie was asked IL the statements
IN the document were true when Mr.. Nicoll.
Mr. Caters consul. interrupted by saying
Inst ne would admit that they were true.