The times. [volume] (Washington [D.C.]) 1897-1901, 1900-05-06
JOHN W. GATES=IN COURT.
Steel and Wire Magnafe Makes
Answer to the Summons


Chairman Of the Board of Directors of the
American Steel and Wire Company appeared
in the Tombs Police Court today in re-
spouse to summons issued by Magistrate
Zeller at the request OF George A. Lamb,
attorney for persons Who are opposed to
him and his methods OF conducting the
business of the company. The summons
to which Gates responded required him TO
show cause why a warrant should not be
issued against him charging him with a
violation of section Gil of the penal code,
which forbids thu director of a corporation
from making any false statements about
it's affairs
A similar summons was first issued at the
request of Washington Seligman. but it was
never served on Mr.. Gates. as he went to
Chicago Before it could be served Mr..
Seligman had a conference with De Lancey
Nicoll, attorney for Mr.. Gates, and then
refused to press the matter. II was said
that one of the reasons why Mr.. Seligman
dropped his charge was that he received
an assurance that at the meeting Of the
directors OF the company next Monday Mr..
Gates would resign. Later Attorney Lamb
received letter from De Lancey Nicoll
to the effect that such an assumption was
without foundation, and that the other side
was free to proceed in any way it saw fit.
When Mr. Lamb procured the summons
from Magistrate Zeller. then sitting in JEFF
ferson Market Police Court, the date for
the appearance of Mr.. Gates in court was
set for May IA. But Mr.. Gates counsel
sent word to the other side that his client
desired to leave for Europe before May IA.
so the hearing in the summons proceedings
was set for today, before Magistrate Zeller
sitting in the Tombs police court.
at
with his counsel, Mr.. Niooll, and John r.
Bennett, patent attorney for the American
Steel and Wire Company: Max Pam, gen.
eral counsel for that company, and j. b.
Lindsay, Mr.. Nicoll's associate.
Attorney George A. Lamb was aecompa-
MED by Attorneys Edward Hymes and
George A. voss. As soon as Magistrate
Zeller appeared Mr.. Lamb said:
Il desire to swear to the complaint
which | here hand to your honor
After tine complaint was submitted and
sworn to. Mr.. Lamb was about to make
a request for more sutpoenas when Mr..
Nicoll rose and asked for a disDissal Of
the complaint. Mr.. Nicoll said that this
was the most absurd and frivolous case
that had ever come within his knowledge.
The complaint, which had Just teen fled,
did not declare an offence under the law.
Taking up the first part of the complaint,
Mr.. Nicoll read a portion to show thEt
Mr. Gates statement was not within its
purview. Did it concern the pecuniary
affairs Of the company?
No" Numbered Mr.. Nicoll this COM
plant is too absurd to take up your hon
or's time to discuss. Here is a general
statement of Mr.. Gates on the entire
trade. 1t is merely a newspaper inter-
view. No director who made a statement
by himself could violate this section. Vio-
lation means concurrence in written re-
port. Wherein is Mr.. Gage guilty of a
violation of the State code? No other di-
rector had anything to do with it. There
was no collision. Mr. Gates statement
is simply a statement by him, by a
director, only who was not acting as a
director, who was simply acting on his
own responsibility. making nc arrange
ment with others in regard to it, making
the statement to a newspaper only a
statement only. AMI certainly not report
quoting from Tie penal code) of the pc
cuniary affairs and conditions of the COM
pany. What nonsense to try to hold Mr.
Gates guilty of the offence cited,"
Mr.. Nicoll, in conclusion, said that Mr.
Gates must have knowingly concurred
in a report prejudicial TO the company and
he defied anyone TO show that Mr.. Gates
had done anything except on his own re-
sponsibility as citizen.
Mr.. Lamb replied briefly He insisted
that the complaint itself was sufficient to
cover the section of the code quoted. AS
a matter of fact, argued Mr.. Lamb, Mr..
Gates had not only knowingly concurrcd
in issuing a statement derogatory to the
interests of the holders of the stock of the
American Steel and Wire Company, but
:aid Mr. Lamb, Mr.. Gates actually sent
for a newspaper reporter and gave infor
nation to him for the purpose of causing
Il to
Mr.. Gates not a director of the company,
and does not the section clearly prohibit
such an act on the part of the officer OF
the company? Was there not a statement
signed by John W. Gates as chairman OF
the board of directors. and within three
weeks was there not a false statement
made by this defendant? | know it is
difficult to prove everything alleged seeing
that all the machinery of great. cor
poration is against one man"
The statements of Mr.. Nicoll are alb
solutely false" continued Mr.. Lamb. Mr..
Gates represents the financial interests of
the company; he is large stakeholder,
and all communications of the company are
made over his name. To speak of his
statements as being blameless, because
they were made without concurrence Is
absurd. Mr. Gates has committed
crime, and / think. your honor, that he
OdSLl " puHiSutu
Mr.. Niooil again rose, saying: Il agree,
your honor, that any citizen has the
right to make a complaint to magis-
trate. But discussion on the question is
apart from the case. 1t has not been
shown that this complainant has suffered
in person or in property from the actions
of Mr.. Gates. He comes here on his own
responsibility. And | say that your honor |
cannot refer to a single similar case that |
has come up in your honor's iuricial eH- |
perience when member of our profession |
has without warrant, endeavored to put |
the criminal court in motion to cast stigma |
on an honorable citizen
When Mr.. Nicoll had finished. Magis
trate Zellcr said:
Il shall let the case stand over until |
Monday, and will then take it up at |
o'clock. Mr.. Gates wants 20 go to Europe |
on Tuesday. If the charges are unfounded |
it VIII be well TO let the case drop so that
Mr.. Gates can leave on Tuesday, as he
wants to do
Yes. certainly said Mr.. Nicoll.
1T seems" said Magistrate Ze!ler, that |
the matter comes down to question Of |
law ana the nearing of the word con |
cur
Mr. Lamb as',ed for more subpoenas bit |
refused to give the names of the witnesses |
he wanted on Monday.
J. II. kcenc Retires From wall street |
CHICAGO, May FLAMES r. keene, the |
lot ,uC cd fTnu