New-York tribune., 1900-04-25
DO NOT AGREE WITH GATES
FEELING IN steel. INDUSTRY SHOWN
IN STATEMENT FROM
JUDGE GARY.

That the pessimistic view proclaimed by John
w Gates of the outlook for the steel and iron
industry is shared by the leading officers OF
the companies in the trade other than the Amer
lean Steel and Wire Company, Of which Mr..
Gates has been and at least nominally is still
the directing head. is from the following
statement issued late yesterday afternoon by
President Gary OF the Federal Steel Company:
During the day have conyersed with the presi-
dents OF most of the companies engaged in the
OF pig iron n an6 in ab the
situation 10 justify any reduction in the present
Ths does not, of course include the Wire company,
which. ! informed has heretofore announced
Wall Street accepts it as an assured fact that
at the meeting on May OF the Board Of Di-
rectors of the Steel and Wire Company Mr..
Gates's resignation as chairman of the Board
viii be offered and promptly accepted. There
were reports yesterday that Philip w. Moen, of
the Washburn Moen Company. OF Worcester.
Mass. would succeed Mr. Gates as chairman,
and it was also rumored that the place might be
offered to ex-Judge William II. Moore, but no
confirmation of these reports could be had MI
Gates was at the Steel and Wire Company's
Office yesterday. but sent out word that he would
not talk about himself the affairs Of the COM
pany.
Although the downtown banks disinclined
10 acknowledge It. il is declared to be the fact
that they are still discriminating more or less
against the common stocks Of the industrial com
panies, notably the American Steel and wire
Company. A money broker who has Intimate re
lations with many big financial institutions ad-
rnitted yesterday that he experiencing great
difficulty in getting the banks to accept such
stock as collateral save in small quantities.
It was reported yesterday that at the confer
ence last week between the Steel and Wire
company's Board and Messrs. Rogers Gary and
Bacon, representing the Board of Directors of
the Federal Steel Company. which had to do
largely with the adjustment of the Illinois Steel
Conpany's claim against the Steel and Wire
company, there were also some plain suggestions
made by one OF the visitors speaking as finan-
cier and not a Federal Steel director. to the
official connection with the American Steel and
Wire Company would remove all danger of the
banks refusing Steel and Wire stock collat-
eral and throwing 1t out of their loans. Mr.
Gates, according TO this story, agreed thereupon
TO sever his relations with the company.
Wall Street news agency yesterday pub
lished the following story relative to the Amer
lean Steel and Wire Company rumors:
firm Of brokers which sold twenty thousand
shares of Union Pacific stock one day last week
received the stock The next day. and gave check
for the due. about $1,000 000 to the broker
who delivered the stock. and this broker delivered
the check Mr.. Gates. TO whom It belonged. The
other day the bank where the first brokerage firm
aware that they had balance of $, 800 900 1t is
supposed that Mr.. Gates put the 81 200 900 in his
Il out for some unknown reason. The check had
not been certified.
The American Steel and Wire Company stocks
gained trife yesterday, the common closing at
411a. net advance of a per cent, and the pre-
Federal Steel common closed at AIS, net gain Is
per cent; preferred, at 40. net gain p per cent