New-York tribune., 1900-05-10
JOHN W. GATES GOES FREE.
MAGISTRATE TELLER REFUSES TO HOLD
HIM on CRIMINAL CHARGE.

with violation of Section Gil of the Penal Code.
was rendered last night by Magistrate Zeller.
who presided at the hearing in the private
animation room of the Centre-st. court. The
stenOgrapher was some time in transcribing his
minutes, and it was p. m. before the Magistrate
concluded his perusal OF them and announced
his decision at his office, in the Bennett Build
ing. In my opinion" he says. there is
evidence whatever TO hold the defendant under
Section Gil of the Penal Code. The complaint
is therefore dismissed and the defendant dis
charged"
George Alfred Lamb present at the time.
besides clerk from Delaney NicolTs office. An
inquiry as TO the effect Of the decision came
over the telephone from the Office of the Ameri-
can Steel ard Wire Company.
Mr. Lamb had a talk with Magistrate Zeller
in his private office which lasted hall an hour.
He was asked if he would take any further ac-
ton. and replied
will begin criminal proceedings as soon as can can
cor7nIafDr viii he under Section 49, of the Penal
Code, which forbids the circulation of any story
preciate its stock This section does make il
necessary for the defendant be director in the
corporation ms IS me same secl!2n u,15I I IlI IN
the prosecutions for manipulating the stock OF the
Brooklyn Rapid Transit Company were recently
pushed.
Mr.. Lamb was asked when he would have
the complaint ready.
Il Will go to work it at once, and it will be
ready to be served Tomorrow he answered.
But Mr.. Gates is to sail for Europe to-rnor-
row.
4 don't believe he is" Mr.. Lamb replied 4
sent my clerk to each of the steamship offices,
and his name is on none of the passenger lists
least none OF the steamers which sail
Thursday. expect to he able TO find Gates
at the Waldorf-Astoria when it is time 10 serve
the summons on him
PRESIDENT LAMBERT ON THE STAND.
At the hearing yesterday Mr. Lamb com
planned that he could not find the witnesses he
wanted to produce. He appealed for more time.
Then he declared that there was an agreement
between The New-York Herald" and The Chi
cago Record" for an exchange Of news.
Robert B Armstrong. New-York correspond
ent Of The Chicago Record was called. Mr..
Hymes offered in evidence the interview with
Mr. Gates printed in The Chicago Record on
April Il last. Magistrate Zeer objected to the
article being put in evidence after ne had
asked the witness if he had shown Mr.. Gates
the written article and had received an answer
in the negative.
John Lambert. president of the American
Steel and Wire Company. was called to the
stand. MI NicoH demanded that the COM
plainant be called instead
Mr. Hynes asked If the report Of the Amer
lean Steel and Wire Company which put in
evidence on Monday were true. Mr.. Nicou OBJ
jected strenuously, when suddenly Mr.. Lambert
shouted:
1T Is truei Does that ansv-e~ your question >"
Between December 81. 1899, and April Is,
1900. what change was there in the financial
condition Of your company" asked Mr.. Hymes.
Mr. Nicou argued at length objecting the
question, and Mr. Lambert was then excused.
Magistrate ZeIler then directed Mr- Lamb 10
take the stand. Mr.. Nicou had Mr. Lamb swear
TO his complaint. Mr.. Nicol then read a por-
ton Of the complaint and asked If he had been
authorized by any client to make it.
Mr Lamb answered: Absolutely no one"
Were you a creditor of the American Steel
and Wire Company asked Mr.. Nicou.
NO" was the reply.
ANY interests in L. direct or Indirect"
Absolutely nore."
The witness said ne had had interview
with Washington SeIigman about making a
complaint that he had had several conversations
with Mr.. Seligman regarding the matter and
that they had applied for summons for Gates.
Who was your client when you applied for
second summons for Mr.. Gates?" asked Mr..
Nicou
Object shouted Mr.. Hymes.
Mr. NICOLL ALLEGES CONSPIRACY.
Mr. Nicou said hat he would prove that there
was a conspiracy behind the prosecution.
7 want TO say that you lie" shouted the
witness.
oh" exclaimed Mr. Nicou.
This said Mr. Hymes. is too cheap bid
for newspaper notoriety on your part, Mr..
Nicou"
Mr. Lamb then said that he was pledged not
10 divulge the name of his client. and that he
had retired from the case by reason of the
severe pressure brought 10 bear upon him which
would affect his business.
Mr.. NicoH attempted TO show that the prose-
cution was inspired by the SeIgmans
Mr.. Lamb said that he had conferred with
no but his friend Marquand
Henry SeIgman. brother of Washington SeHg-
man, who in the room. asked that his
brothers name be kept entirely out Of the hear
ing. Mr. NicOu agreed to this request
Mr.. Hymes and Mr.. Lamb pleaded for an ad
journment until Monday. Mr. NicoH held that
there had been absolutely no evidence showing
that Magistrate Zeller had Jurisdiction in the
case. He declared that il had not been proved
that any report or statement had been made
detrimental 70 any corporation, much less the
American Steel and Wire Company.
Magistrate ZelIer finally concluded 10 read the
minutes Of the testimony at his private Office.
No so Nassau-st., after adjournment the
stenographer having said that they would soon
be ready In his decision he says in part:
strong a reporter for The Chicago Record A[ep
viewed the defendant on Apri Is. regarding the
steel business in general When asked a hour he
affairs of The American Steel and Wire Company
ne declined 70 discuss II. This is clearly not a
statement within subdivision Of Section GIL The
1nited 70 the defendant and could therefore NOT he
concurred in by llm. nor did il concern the af-
t-+s oI ~ - eI,,' ] roIHpsrEa ar All The reports
interview Of Armstrong with the defendant and
his testimony IS The only one upon which the COM
pal.alt. " iiappeheq afterward Is
not material lot me Defendant could not be held