Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1900-04-28
TROUBLE OF Mn. GATES.
President Lambert Denies Legal Pro-
ceedings -Allegcd Charges.

Chicago, April 2S-President John
Lambert of the American Wire and
Steel company, denies that the depart
ure of Mr.. Gates and his companions
from New York was accelerated by
threatened legal proceedings
That is not true said Mr. Lambert
1.-THE officers OF the wire and steel conf
pany had finished their business IN New
York and they simply returned 20 Chi
ca-o. We had no .Btimation of any
legal Proceedings By the Seligmans or
any one else
More than this Mr.. Lambert would
not talk. lie refused 10 discuss the
legal STEPS rcputtd To- have been TAX
en-, but insisted that the officials of the
company were willing t0 face any acCu-
sations that might Doe brought against
them. President Gates said:
81 have nothing absolutely TO say"
THE CHARGES MADE
New York, Arpu 2L-The Times to-
morrow viii publish the following.
Developments of the affairs of the
American Steel and Wire company
likely 20 cause a sensation, We're made
known yesterday Fuday). sum
mOnses are now In the hands OF the
law firm Of Lamb * Ness for Chair
man John W. Gates of the company
board OF directors, and John Lambert
the president, both of whom left this
city for Chicago last Wednesday and
10 Is the Intention of the attorneys TO
take further legal proceedings, which
viii include efforts 20 get eXtradiuCn
papers II Messrs. Gates and Lambert
show no intention OF coming back to
this city
Magistrate Zeller who granted the
summonses at a private hearing. has
issued them In blank so that the at
torueys can mn iu the dates at which
they may be made return8ble.
The first complainant IN the case
was Washington Seligman OF the firm
of Sellgman q Van Antwerp There
is second complainant. whose name
has been withheld
The summ0nses against Messrs.
Gates and Lambert We're issued ON ape
plIcatiOn made under section Gil OF the
penal code OF this state headed mis-
conduct OF officers and employees Of
corporations" 1t reads IN part as fol-
lows.
"A director officer, agent or en-
pl0ye Of any corporation on joint stock
association who knowingly concurs in
making on publishing eny written re-
fairs or pecuniary condition, contain
ing any material statement which is
false, is guilty OF a misdmeanor.'
Some time ago il was officially stated
that the directors OF the American Steel
and Wire company in view ~ the pros
porous condition OF the corporations
affairs intended soon 90 retire $1,000,
GOO of the preferred stock the total
amount outstanding ~ which r. So
OO0.O0 at par. on The strength OF this
statement Washington SelIgman and
the other client OF Lamb a. Noss.
bought steel and wire preferred stock
When Mr. Gates shut down twelve OF
the cOmpany's mills and gave inter-
views on Monday. April 10Th, In which
he was quoted as saying that the steel
and iron business was In bad shape
and that the demand for products of
his company was hardly 30 per cent lu
volume OF what it should be. the COM
mon and preferred stock began 90 tum-
BILE. These have never recovered their
loss Mr. Gates was quoted as proph-
esyine on Monday that the price Of
steel rails would fan 10 about $50 "a
ton I'm a week. which Il bv no means
did and the men who later procured
summonses against them specify that
statement as uniustifable,