Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-05-08

"a Protest Against Gates Being
Continued In His PositiOn-Were
Promised at the April Meeting
That Gates Would get Out.
NEW YORK, May AT to-day,s
meeting of the Board of Directors of
the American Steel & Wire Company.
Henry w. Seligman and Frederick w.
! Straus resigned from the board. Sub
sequently the following was made pub
lie:
NEW YORK, May Z.
To the Board of Directors:
American Steel & Wire Company.
| Gentlemen:
We have to-day resigned from the
| directory of the American Steel &
Wire Company because Mr.. John w.
Gates did not at to-days meeting re-
tire from the management of the COM
pany as we had been given to UNDER
stand that he would do.
Our reasons for continuing. to act
as directors until now may perhaps
deserve further explanation. On the
| morning of the April meeting of the
board, we received assurances from
| sources on which we thought ourselves
entitled to rely that the resignation
of Mr. Gates as chairman would be
offered about May l. While ii is true
that by continuing in the board we
| exposed ourselves to possible miscon-
struction, we risked this in the belief
that by delay we should accomplish
that which every one must recognize
as demanded by the best interests OF
the company, namely Mr. Gates retire.
| ment from the management; and we
realized that under the bylaws of the
company to force Mr.. Gates retire.
! ment was practically impossible and
that these assurances promised more
substantial results than the contem-
plated attempt to force his immediate
| resignation.
Mr.. Gates, however. continues to
control the company, and under these
circumstances, 1t becomes impossible
for us longer TO continue in the di-
| rectory; and, in order that the stock
holders of the company may fully un-
derstand both our reasons for contin-
uing in the board and for resigning
from it. we shall give such publicity
to this letter as we may think proper.
Yours truly,
HENRY SELIGMAN
FREDERICK STRAUSS.
What was called an informal meet
ing of the directors was held later.
Nothing of Importance was done, as
far as could be learned.
Mr. Gates declined TO give an ink
ling of the proceedings that led TO the
resignation of Messr. Seligman and
Strauss Mr. Gates was asked as to
the truth of the report that he intend
ed leaving for Europe on Thursday
next. He replied that 1t was quite un-
likely that ne would sail on that date
and it was barely possible that he
would not go at ALL The vacancies
caused by the resignation OF Mr.. Selig-
man and Mr.. Strauss will be filled in
a few days, according TO Mr.. Gates.
George A. Lamb, the complainant
against Chairman Gates In the action
charging the defendant with having
made public false statements concern
ing the affairs of the company to-day
filed his reply to the points raised by
counsel for Mr. Gates at the hearing
on Saturday. This reply contends
that the charges contained In the orig
inal complaint are legally sufficient TO
Justify the examination Of witnesses
in order to determine whether or not
there is probable cause to conclude
that the defendant has violated the
provisions of the penal code OF New
York State The magistrate denied
the motion for a dismissal of the case
as applied for by counsel for Chair
man Gates.
The hearing OF the case against Mr..
Gates then proceeded. Henry Selig-
man identified as a balance sheet OF
the American Steel & Wire Company,
paper that was handed him. The pa
per was put in evidence.
He admitted that he knew nothing
Of the business of the company except
what was told him By its officers.
Frederick Strauss testified that he
had been a director in the Ameri-
can Steel & Wire Company but was not
now. When asked If there had been
any substantial change In the pecnn-
larry condition Of the company he said
that his knowledge Of its affairs was
obtained from the reports OF the va
rious officers.
He was asked as to the condition Of
the company as compared with it's
condition previous TO April nth. He
answered that the sales had fallen on
and its present condition was not 50
favorable as 1t had been.
Ebert H. Gary, OF Chicago. was the
next witness. He stated that he was
president OF the Federal Steel Com
pany since October 18th, 1898. He
showed that there was practically nc
direct connection between the FEEDER
al Steel Company and the American
Steel & Wire Company. Adjournment
was taken until tomorrow.
President Gary made this formal
statement later in the day:
1T is a fact that the billet mill and
converters at Joliet have been shut
down. This results from the closing
OF the rod mill at Joliet. which was
closed some days since for the reason
that the wire company lAmerican
Steel & Wire Company. was not TAX
ing rods on its contract. As compar-
ed with the total production of the
different plants OF the constituent
companies OF the Federal Steel Com
pany or the total number of men en-
ployed. the Joliet plants are not very
Important