The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-21
TWO STATEMENTS.
Case as Presented by the Gates and
OsROOd Factions.

DENVER, Col, Aug. 20.-The following
statement was handed to the representative
of the Associated Press, who called on Mr..
Gates at the Brown Palace Hotel at IL
o'clock tonight. pursuant to invita-
ton: ''Messrs. Mitchell Gates. Blair and
Lambert, who are conducting the pending
fight on behalf of the owners of four-ffths
of the capital stock of the Colorado Fuel
and Iron Company to secure control of
their property, announce that they have
rendered their designations as directors of
that company, and that the same became
operative to-day. They are taking active
measures to vindicate their rights as stock
holders possessed by themselves and those
they represent. They will also, in a few
days, present a report to their principals.
The injunction procured to-day was upon
the application of one Bartlett, the holder
of ten sharese of preferred and five shares
or common stock; confederate of the
present chairman, Mr.. Osgood, upon the
ground. in part, of the deliberate suppress
sion by the existing management of the
legal notice of the annual meeting Fair
minded men must appreciate and will be as
sured that the effort to perpetuate control
through such means must necessarily fail -
The following statement was given out
by President Osgood at the Denver Club
Tonight AS result Of the injunction
ana protest, the annual meeting of the
Colorado Fuel and Iron Company was ad-
Journed subject to the order of the court
and present board Of directors continue in
office until a stockholders meeting is held
Had the annual meeting been held, the re-
suit probably would have been the election
of two boards of directors, as the Gates
party would have been defeated in the
regular meeting, and would, In all proba-
bility, have attempted to hold a meeting
OF their own, recognizing the stock and
proxies they maintain TO hold, and electing
board OF directors satisfactory to them
selves. The result of this would have been
court proceedings to determine which
board OF directors was the legal one. This
would have put the business of the COM
pany into a chaotic condition as pending a
determination by courts its business opera
tions would be brought to a standstili"
1t is fortunate that such a calamity
has been averted. The board of directors
as was shown in the recent case before
Judge Riner, has instructed the secretary
to secure and keep book showing the
names of all stockholders, transfers of
stock, etc, in accordance with the laws of
Colorado. This book will be the basis fo,.
determining who the stockholders of the
company are and what is their right 10 vote
for directors.
1T is the purpose of the company to
strictly comply with the Colorado laws II
was never the purpose of the officer wilfully
to evade this law, but as no stockholders
applied to have the transfer of his stock
registered as provided in the statute until
Mr.. Gates'S attorney stirred the matter
up book was kept. The board of di-
rectOrs hope to be able TO comply with
the Colorado law and at the same time
with the New York stock organizations. so
that stock will not be stricken from the
liss. But the provision of the Colorado
law. making IL essential when money is
loaned on stock TO have the fact that the
stock is pledged as security noted on the
Colorado book within sixty days. will at
least be the cause of great Inconvenience.
and this may make ii necessary to seek re-
lief a the next session of the Legisla ture -
Mr.. OSgOOd expressed the belief that the
temporary injunction issued to-day against
holding a meeting Of stockholders would be
made permanent and that no meeting could
be held until the court gave it's consent