New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-05-06
GATES HEARING OPENED.
MAGISTRATE TELLER ADJOURNS IT TILL
TOMORROW AND MR. LAMB
GETS SUBPGNAS.

GIL OF the Penal Code, was begun yesterday
| ing before Magistrate Zeer in a private
attached to the Centre-st. police Magistrate
| Zeller, who not presiding in police court
| last week. specially to hear the case he had
| issued the summons for Mr.. Gates. The hearing
was originally set for May IA, but was changed TO
| yesterday at the request of Mr.. Gates the
ground that he wished to sail for Europe before
| May Il.
Section GIL of the Penal Code in effect for
| bids a director of corporation TO make false
| statements about its affairs. The hearing was 10
| compel Mr.. Gates show cause why warrant
| should issue for his arrest the charge made
by Mr.. Lamb Mr.. Lamb acted as his own counsel
| and De Lancey NicolI appeared for Mr. Gates.
The principals in the entered the police court
little before Il o'clock. Those interested in the
| shown the room adjoining the court
and then there was a wait for Magistrate zeller,
! who was in Magistrate Planners private room.
Magistrate Zeller opened the hearing at about
| Ills o'clock.
LAMB ASKS FOR sUBPRNAs.
Mr.. Lamb Magistrate Zeler
took his seat, and asked for number Of subpoe-
| mas He also asked that the case be set for May
| Il. Mr.. Lamb then submitted a complaint against
| Mr.. Gates, to which he made affidavit Mr.. Lamb
started read the list of the names OF witnesses
whom he wished subpenaed, but after mentioning
! the first name. that of Robert Armstrong, he was
stopped and told that it not necessary to
the Magistrate Zeller said that subpenas
would be issued.
Mr.. Nicoll then moved to dismiss the complaint.
on the ground that there had been offence
within the provisions of the Penal Code. He de-
clared it the most frivolous charge that had
ID his notice He said that the first page
OF the complaint showed the gtst of the allega-
tons which that April II reports
made by Mr. Gates regarding the American Steel
and Wire Company the effect that the business
of the company IN bad shape.
Mr.. Nicoll added that the statement complained
OF a newspaper article which said among
MY fhar he STnal nd p--e bIISip
only about 80 per of what it should be- He
said that the article was general statement OF
the condition of the steel ard wire trade and not
OF the American Steel and Wire Company. He in
sisted that violate the law the statement had 20
be concurred in and that director who made a
statement by himself violated the law 1t was. he
said. only a statement published in a newspaper
and concurred in by any OF Mr.. Gates's
associates. The law he said does not concern the
statement made to newspaper by one of the COM
pany acting on his responsibility.
Mr.. Lamb declared that the charge ne made was
a most serious one. and that the New-York
statute expressly aims to punish. He proposed
TO show that the newspaper reporter who wrote
the article was sent for the purpose of Mr.
Gatess gain.
He declared that the statute to the effect
that any one was guilty who knowingly concurred
in a statement like the in question. 1t was
not necessary. he said. concur with other direc-
tors to come under law. He made the asser-
ton that the offence great as if Mr. Gates
had concurred with other directors in making the
statement which. he declared, related specifically
to the business of the American Steel and WIRE
Cor1Danv He argued that even If it did not re-
late specifically the business Of the company the
articles injurious 10 that concern a. MI
Gates stated that the American steer ana wire
Company controlled nearly so per cent OF the steel
and wire business. The matter. he declared was
one Of common sense. He made the charge that
the sta. ement in question was absolutely false.
Mr. NicolI then addressing Magistrate Zeler.
said:
You never saw in our profession in snch
Il position as the complainant Is now. Without
client without a wrong ne brings this charge. Ii
should make Your Honor suspicious. 1t would be
bad enough if it was made within the statutes
He points nothing but statement made in
newspaper 10 q reporter and this wants the
machinery OF this State set TO work
At This point Magistrate zeleT Ter, said ,hat he would
p m He set this as the date as he said he
derstood Mr. Gates was soon 10 depart TOT Europe.
in the mean time the subppnas for those whom ne
wanted to appear at the hearing
TEXT OF THE COMPLAINT.
The formal complaint made by Mr.. Lamb was
follows:
George Alfred Lamb being duly sworn, deposes
II reside at 267 FifIb-ave in the city and county
Of New-YoTk l am twenty-etght years Of age.
MY OCCUPATION Is that Of attorney and counsellor
York. l charge John W. Gates, director of the
American Steel and Wire Company a corporation
doing business III the State of New York with a
violation Of Section GIL. Subdivision of the Penal
=" That the l7th day Of April 1900 said Gates,
oelhg at such time director Of the aforesaid
American Steel and Wire Company. a corporation
created and doing business under and by virtue of
the laws Of the State of New-Jersey, and doing
business in the State of New-YorlI did knowingly
concur In the making and publishing the fol-
lowing written report and statement Of the affairs
s mo WEi cona;lon OF the said American Steel
-, The steel and wire business is in bad shape 1t
mas oeen getting worse constantly. and the mills
OF every sort have been running on orders thar
they obtained six or more months ago The de-
mand to-day in our line at least and I think pro
portionately so in the other departments of the
steel trade is only about 80 cent OF the volume
+, That said written report of which the foregoing
County of New York in the ioTrnI o 1e Wy ana
known as The New-York Herald That II was so
edge of the aforesaid Gates That said Gates
caused and procured the TO be published in
York he knowingly concIrred in and consented to
tne making of said report and statement and in
That said report and statement published in
the AFFAIRS and pecuniary condition Of the afore-
at the time of said publication the said Gates was
Lnen ana there director. and chairman of the
Board of Directors.
That said report and statement meant and was
intended by the said Gates TO mean and convey the
informa ton TO the public in general. the stock
said 'New-York Herald which is a daily
newspaper with wide and extensive circulation in
the city county and State OF New-York. and else
where. that the business Of the aforesaid Amer
lean steel and Wire company. at the time Of the
said publication. decreasing and becoming democrat
lied and that the amount of business hand and
the amount OF contracts OF which the said corpora
ton had az said time to tuhl. were so small that
the stock In said corporation becoming much
decreased in value, and, in fact practically of
value
THAT said Gates that said publication re-
and Il made by said Gates and caused
made and published by him with the knowledge
the stockholders of said corporation who might
read said publication would understand therefrom