New-York tribune., 1900-04-21
GATES STAYS AS CHAIRMAN
STEEL AND WIRE DIRECTORS TAKE NO
ACTION, APPARENTLY, ON CLOS
ING OF PLANTS

Rarely has Wall Street taken such an absorb
ing interest in a Board meeting as it manifested
yesterday in the special meeting of the directors
of the American Steel and Wire Company, held
the company's offices in the Empire Building
and rarely has II learned so little about the oc-
currerces at the session it was able TO secure
yesterday afternoon. The directors We're in ses-
sion from II o'clock in the morning until after 3
in the afternoon Upon adjournment this state
ment was handed 10 the reporters
The Board of Directors discussed the general
business situation and unanimously decided that
has been disposed of the Exec1ltive COMMITTEES NAV
make such reduction in prices as they may find
ations at the idle plants.
The meeting adjourned to reconvene May 7.
That ALL and naturally it left many inter
esting questions unanswered. On it's face the
statement appeared to put the directors
ord as indorsing Chairman John W. Gates who
ascrbed the precipitate closing of twelve of the
company's mills Monday to overproduction.
But assuming that the business of the company
is really in as bad shape as Mr. Gates declares
it is the opinion of Wall Street and the whole
business community that the summary means
employed by the Steel and Wire management for
correcting the weakness was indefensble For
the shutting down Of the plants and the coinci-
dent fall Of the Steel and Wire stocks. an occur
renee giving rise to widespread and ugly rumors
y,
accountable both by the investing public and,
according TO general belief by some of his fell
low directors as WE'LL and it was understood that
at the meeting he would be called sharply to
account by these directors, and perhaps be asked
to resign his place as chairman of the Board.
Whether not any such demand made of
him yesterday could not be learned. the fact def
nitely known being that he is still chairman. 1t
was reported that Henry Seigman and Fred
erlcll Strauss. the New-York directors. had Of
fered their designations. but this rumor de-
MED on good authority later in the day. When
Mr.. Gates came out of the Steel and Wire com
pany offices after the meeting he was beset by
the reporters whom earlier in the day he had
banfshed from the main office to the corridor In
answer 10 question as to what had been done
he said: Il don't know anything of interest ex-
cept that I going to luncheon
Then you are to remain chairman of the
Board?" suggested another reporter
Mr.. Gates scowled, visibly angered. but he
Guided give way to his wrath, and
sponded: Well you amuse me-"
rs there to be any change in the officers OF
the company" asked.
Never any idea Of it." he answered emphati-
cally. THE idea only in the fertile minds
of few newspaper men"
An incident to which much significance was
attached by the Street was the visit paid by
President Gary Of the Federal Steel Company
to the Steel and Wire offices while the directors
meeting was in progress. and his return a half
hour later, this time in company with H H.
Rogers. of the Standard Oil Company. and Rob
ert Bacon of J. p. Morgan & Co, both of whom
directors of the Federal Steel Company
None of the three would give any intmation
afterward to the reason for their conference
with directors of the American Steel and Wire
Company, and the conclusion was jumped at by
some that their presence might mean that Fed
eral Steel and Standard oil interests had beer
the large purchasers, heretofore unidentified D.
Steel and Wire stock during the week
person close to Judge Gary said afterward
however. that the object of the latter's visit was
to impress upon the Steel and Wire directors the
determination OF the Federal Steel Company TO
enforce all it's existing contracts with the Amer
lean Steel and Wire Company.
1t appears that the American Steel and Wire
Company contracted for large quantities of bill
let's with the Federal Steel Company at prices
which are to-day unprofitably high by reason
of the decline in the price of some of the Amer
lean Steel and Wire Company's products Mr.
Gates. ii Is said, has urged that his company
had the right to cancel these contracts or 10
postpone indefinitely the acceptance of the bill
let's contracted for.
SUNNY CALIFORNIA NOW