New-York tribune., 1900-05-22
TRUST COKPANT ATTACHED.
JOHN W GATES SAID TO HAVE OWNED a
CONTROLLING INTEREST BEFORE
REORGANIZATION.

The Sheriff of New-York County has received an
attachment for sS09s2 against the Guardian Trust
Company. a Missouri corporation with offices at
Kansas City, Chicago and at No. GO Wall-st in
this city, in favor Of Elias c. Benedict William p,
Wellman and Edwin T. Rice, jr.. assigned claims
from various other investors.
This action is based the charge that officers
and employees Of the Guardian Trust Company
ganized on June %, 1899, under the laws of Mis-
souri,, a corporation known the Chicago Zinc
Mining Company and induced intending purchasers,
among whom the plaintiffs TO buy stock
false representations.
The Guardian Trust Company is a reorganization
OF the old Missouri, Kansas and Texas Trust Com
pany OF which. according to OF the com
plainants, John W Gates, formerly chairman of the
American Steel and Wire Company. owned a con-
trolling interest. To what extent Mr.. Gates is con-
nected with the reorganized company against which
the writ Of attachment issued yesterday can
not be learned, since the directors are unwilling
that the books OF the company be made public.
The mine OF the Chicago Zinc Mining Company in
whose stock the plaintiffs allege they have in
vested their money through Misrepresentation. is
near Joplin. Mo- and was leased from Aessrs. Stark
and Ralston. the owners Of The property. At the
time Of its formation the Board Of Directors of
the Chicago Zinc Mining Company was composed
OF A E. StillweIl president: J. Mcdowell TrinbIe
Nlce-presoent; F. 3. Wilcox, secretary and treas
urer; j NJ Mason ard B. J. Hickman. all officers
and employees Of the Guardian Trust Company
The plaintiffs also allege that the defendant is
STOCK OF the chicago Zinc Mining Company at par
10 the amount Or $4,000 IN order procure the in
NesIlleut or capital alleged that defendant
represented t2at The mining company duly
gdIlzed under the laws of Missouri. with capital
or $7O1O0, all of which fully paid up; that the
Property was worth more than the amount Of its
issued capital; that its mining. pumping and milling
machinery was fully adequate for the profitable
operation or the mine; that the mine could be Op-
Grated without further expenditure for develop
Inent; that the company free from debt; that
the amount OF zinc in sight in the shafts
Tor one year, ana that dividends being earned
reservations upon which they bought stock was
false, and known by the defendant be false a
the time OF the sale They further alege that the
shafts upon the property leased by the Chicago
Zinc Company had been stripped Of all valuable
might be paid the Guardian Trust Company ad-
vanced four amounts of $500 each for the purpose
or Geceiving intending purchasers Of stock
belief that the mining company earning large
profits No dividends have been paid since Sep
tember 30 1899 The operations of the company il
beginning TO end its entire output has been less
than the cost OF working the mine and a large
debt mas accumulated. The plant has
a standstill and the capital stock has become
utterly worthless.
Much information upOr, which the plain
Austin. Of Kansas city who investigated the
Chicago zinc mine in the interests Of the stock
holders.
Cary & Whitrdge are the attorneys for the
plaintiffs Nathaniel Norton, the local representa-
tive OF the Guardian Trust Company, said yester-
Certain stockholders have become dissatisfied
with their investment in this mining company and
brought suit. I have only TO say further that
their allegations grossly exaggerated"