New-York tribune., 1900-05-08

SELIGMAN AND STRAUSS RESIGN AS d.
RECTORS OF STEEL AND WIRE.
OPINION EXPRESSED THAT THE PROCEED
INGS IN COURT CHANGED THE
CHAIRMAN'S PLANS

INGS IN COURT CHANGED THE
! CHAIRMAN'S PLANS
The known fact that submissiveness under
! attack in a police court or elsewhere is
one OF John W. Gatess prominent quail
ties prepared Wall Street yesterday afternoon
for the announcement that Mr.. Gates had not
after all resigned the chairmanship Of the
Board of Directors of the American Steel and
! Wire Company at the adjourned meeting Of the
directors. The news was also not a cause of
much surprise that Henry Seigman and Fred
erick Strauss of the banking house OF j. & w.
| Seligman & Co, had severed their official
nection with the company, for it had been
| mon report that the relations between the
| Gates party In the Board and the Seigman
representatives strained that some
| thing had to break" All the directors except
| c. T. Boynton, of Chicago, were present at yes
! terday's meeting, which began at little after
| IL o'clock. Two hours later Messrs. Segman
and Strauss came out of the board room and
| took the elevator to the street, tarrying only
| long enough to answer the reporters questions
with the information that they had resigned.
| little later they made public the following let
! ter, explaining their action:
To the Board of Directors the American Steel and
Gentlemen: We have to-day resigned from the
pany because John " Gates did not at to-day,s
WoG as do We had 0een given TO 'ha' ne
until now may perhaps deserve further Explanation
On the morning of the April meeting of the Board
! we received assurances from sources which We
thought ourselves entitled to rely that the resgna
| ton OF Mr. Gates as chairman would be offered
While ii is that by continuing: in the Board
we rsked this in the belief that by delay we
| should accomplish that which every one must rec
demanded interests
| company, namely, Mr.. Gatess retirement from the
laws Of the company to force Mr. Gates's retire
ment was practically and that these a
| the contemplated attempt TO force his immediate
Mr.. Gates, however, continues to control the
company and under these circumstances It becomes
| impossible for longer to continue in the d.
rectory, and in order that the stockholders of the
company may fully understand both our reasons
it shall give such publicity to this letter as we
may 'i'iiN p''' HENRY sEIIGMAN.
FREDERICK STRAUSS.
The meeting of the Board of Directors ad-
| journed about p. Mr.. Gates and the other
directors were seen as they left the room Mr..
| Gates smiled like who is pleased with
| things generally. but declined to say anything
| beyond confirming the truth Of the report of the
designations Of Messrs. Selgman and Strauss.
Max Pam, general counsel for the company, de-
clined to make public any OF the details of the
meeting.
Messrs. Seligman and Strauss later
in the afternoon, but they both declined to say
another word. They said their letter quite
sufficient and expressed all they wanted to give
out at this time.
| Washington Seigruan, who originally pre-
| ferred the charges against Mr.. Gates. but later
withdrew them at the suggestion Of his rela-
tives in the firm OF J. w. Seligman & Co. was
| seen on the floor OF the Stock Exchange. He
was asked if he intended to press the original
| charges. but declined to discuss the in any
| OF its phases.
| What called informal meeting Of the
directors was held later In the day, after the
| Gates faction returned from luncheon. Moth
| ing of Importance was done, so far as could be
| learned, and the meeting broke up little before
| o'clock. Mr.. Gates had to go to court to
attend the Lamb hearing. Mr.. Gates was in an
| amiable mood, but declined to give any inkling
| Of the proceedings which had led to the resig-
nation of Messrs. Selignan and Strauss He de-
clared that, contrary to report. the meeting was
| not at all acrimonious.
Mr.. Gates asked to the truth of the
rumor that he intended leaving for Europe en-
| Thursday He answered that it was quite un-
| likely that he would sail that date, and 1t
was barely possible that ne would not go all.
The vacancies caused by the designations of
Mr.. Seligman and Mr.. Strauss will be filed in
a few days, according to Mr.. Gates.
| treSluenI LAMBERT or me American Steel and
| Wire Company said Sunday just before
| leaving Chicago for this city, quoted:
Last year Mr.. Gates's family wanted him to re-
| tire. and he practically said he would do on
May !, 1900 He decided resign and drop all his
active business interests for while and to take
| his family abroad for long trip. There no
secret about his intention at that time. He talked
| IT over with some of the directors and with the
| Executive Committee. think he would car
ried out his original plan If these other compca-
| lay aside the responsibilities of his office but
| whether he will do do know
! 1t is generally believed in Wall Street that
Mr.. Gates would have retired yesterday from
| control of the Steel and Wire Company had not
| his cOmbativeness been aroused by the action
| of Mr.. Lambs clients In beginning legal pro-
ceedings against him for alleged violation OF
| the NewYork Penal Code. Yesterdays meeting
OF the Board, however, left him still the execu-
| tive head of the great corporation, and left him
still charged with the grave responsibility of
administering its affairs for the benefit of its
stockholders, a trust to which, in the opinion
| of many Of those stockholders. he has In the
| past proved faithless.
| About seventeen thousand shares of Steel and
| Wire common stock were traded in Yesterday
| the top price being 1914 and the lowest and
closing 3I44, net loss on the day of I1a points
! The preferred stock was less active, and closed
| at I6a4. fractional loss compared with last
! Saturdays final quotation. The other iron and
| steel shares heavy and off from fraction
| to points, Tennessee Coal and Iron making
| the greatest decline.