The Providence news. (Providence [R.I.]) 1891-1906, 1902-08-20
new BATTLE
FOR CONTROL
Faction Of John ". Gates May
Not Be Fully Harmonlzed.
MEETING OF STOCKHOLDERS
Respondent Appeals TO The Court and Says
He viii Fight the Matter to Tho
Bitter End.
MEETING OF STOCKHOLDERS

Denver, Col, Aug. D-Ihe Johh W.
Gates faction OF the Colorado Fuel and
Iron company has lost another round in
the battle for control OF that company.
Judge Riner OF the United States Dis
trict court has denied the Gates applica-
ton for a preliminary injunction to pre-
vent the officials OF the company allowing
them to vote proxies they claim TO hold
at the stockholders meeting today In
this city.
The suit, which was brought In the
name OF John j. Mitchell and others
against the Colorado Fuel and Iron COM
pany. was based upon the alleged frau
dulent and absolutely void bylaw which
was adopted by the board OF directors of
the company on July 30 last. and which
the complainants charged was framed
and adopted for the purpose OF enabling
the present officials OF the Colorado Fuel
and Iron company to dictate the action OF
today's meeting. and also TO deprive the
complainants and the shareholders they
represent by proxy from voting at such
meeting.
MEETING OF SHAREHOLDERS.
Judge Riner held that the allegations In
the bill Of complaint were fully met and
denied by the answer OF the defendant
company. In deciding the application for
preliminary injunction the court was not
expected to pass upon questions of law.
However. .le would say that on Its face
the bylaw provided for an orderly and
lawful method OF conducting a share
holders meeting. and that apparently
there was no other purpose In view. The
bylaw was adopted in good faith The
application for preliminary Injunction
would therefore be denied.
The court room last night was crowded
with spectators. Mr. Gates and his
friends listened attentively to the reading
OF the decision, and as soon as II was
completed left the court room with their
attorneys
THE COURT PROCEEDINGS. a
The legal battle for control OF the Colo
rado Fuel and Iron company was resumed
yesterday IN the Federal court Judge
Riner hearing further argument on the
application of John w. Gates and his
friends for an injunction TO restrain the
officers OF the company. headed by J. G.
Osgood as chairman OF the board OF d.
rectors. from interfering In any way with
the voting OF the stock held by the Gates
faction at the annual meeting of the
stockholders.
On behalf OF the Gates faction It was
alleged that at a secret meeting held
July 90 OF the Colorado members OF the
and Iron company the bylaws were 80
amended that proxies held by John w.
Gates and his associates may be thrown
out at the annual election.
GATES APPEALS TO THE COURT.
Gates asks the court 10 order that a
chairman be elected by a majority OF
votes.
The Osgood faction claims 10000 bona
fide votes held by Chairman Osgood and
his friends. representing the majority OF
the real holders OF Fuel and Iron stock.
A majority of the proxies held by John
w. Gates represent gambling class not
permanently interested In the company
and secured by Gates by actual payment
OF money This Is contrary to the laws
OF New York Some of the proxies may
be forgeries, and In any event the list is
illegal and should be thrown out Osgood
has repeatedly refused TO conspire with
Gates in turning the Fuel and Iron COM
pany over to the Steel Trust and thus In
curred the ill-will OF Gates.
TO THE BITTER END.
John w. Gates attorneys nie,d afidavsrs
signed by all the plaintiffs denying that
they had purchased proxies or that II was
their intention to sell out TO the Steer
Trust When Attorney Waller offered the
latter point In his closing argument Judge
Riner interrupted him 10 say II was not
necessary TO spend any time on that mat
ter.
Attorney General Post said today that
the laws OF this state are sufficient 70
prevent consolidation OF the Colorado
Fuel and Iron company with the Steel
Trust. and action would be taken TO pre-
vent such consolidation should IL be at
"a ut InH