New-York tribune., 1902-03-18
GARY on STAND FOR GATES
COUNSEL RESENTS AN IAIPUTATION
As To THE VERACITY OF
THE WITNESS.

Justice Truax IN The Supreme Court yesterday
resumed The hearing Of the action brought by
John H. Parks against John W Gates for an ae-
counting OF the profits alleged 10 have been re-
ceived by the defendant in connection with the
formation OF the American Steel and Wire Com
panv. il is said that the suit involves S500em
lIr Parks alleges that "a contract was entered
into between ex-Judge EIbert II. Gary, president
Of the Federal Steel Company and now chairman
Of the executive committee Of The Uniteu states
Steel CORPORATION. and John ". Gates, on one side
ana the plaintiff. Gerrit II. Ten Brock and others
or the other side. by which II was agreed thal
a COMPANY should De formed TO purchase all the
z-trs rod barhea wire and wire and nail manu-
eactories iu the United States The profits were
20 Re equally divided. eN-JudEe Gary and his as
sociates 10 receive one part and Ten Brock anu
hts associates the other, Mr.. Parks says he never
received his share Of the profits and that Mr.
Gates has never accounted for the pronts mace
he demands that his share be paid 70 him }. +.
AIorgan & Co financed the deal by which the Varl-
Gus corporation We're merged into the American
Steel and Wire Company
sullivan & Cromwell and Austen G. Fox appeared
FOR Mr. Parks while William D. Guthrie is coun-
81 for Mr. Gates Both Mr.. Gates and Mr.. Parks
were in court when the case was called. and eN-
JUDGE Cary was called witness for the de-
fence.
Edward Strauss Of J. < ". SelEman & Co. was
.l e-st witness for the plaintiff He testified that
in January, 1893. Mr.. Gates signed an agreement
sr connection with the new corporation Mt. foN
read q deposition made by Nr. Gates BEFORE tTlal'
from which It appeared that two agreements were
made, the one made with Mr.. Ten Brock never
hgrrug been carried out The defence IS that y
was -he other agreement which was acted upon
ana " .-h resulted IN The formation Of the trust.
I his aneuIrC address Mr.. Guthrie declared tnat
fae ALLEGED agreement set up hy the plaintiff was
extI arn.v one sided. enabling him 70 call upon Mr.
Cat for profits without contributing toward
losses he might sustain by reason Of panic or the
death ~ 1Ir. Morgan.
EN-Judae Cary the first witness for the defence,
said he had been connected with the steel business
since lsez when he became interested in the Con
--Utar-6 Steel and Wire Company. He had known
ar Gates all his life In 1892 they began 10 look
forward 90 the consolidation ot the large steel and
wire plants fn the country. The formation Of the
Consolidated company was one step in that drec-
tton. In 1897 Mr. Gates obtained options The
American Wire Company, Cleveland, for S6ao.0e0,
and steel and wire plant in Newburg. Of which
Benjamin j. Odeu was receiver. Mr.. Gray told Of
meeting I'm the Holland House with NIr Ten
Broerk Mr Ladd. a manufacturer OF Providence.
ana Mr. Wolf. a manufacturer Of 81. Louis. Mr.
Parks was not present They talked Of the acqui-
sitiou Of certain plants and The necessity OF OBJ
tanning good financial backing and Mr.. Gates and
The witness We're TO see !. p. Morgan & Co TO that
end. Mr.. Morgan agreed 10 take the project up.
There was some discussion at the meeting as TO the
division Of the profits and Mr. Gates said half or
nothing and the others agreed.
A letter from Mr.. Coster Of J. p Morgan 8. Co.
was read. He declined to advance any money at
that time because Of the poor showing Of the
companies IN 1897, and suggested that the plans
hang FIRE for "a few months Witness said he read
she letter 1T a meeting wire and steel manu-
facturers- They declared their unwingness 10
grant any extension OF time Neither Mr.. Parks
nor Mr. Ten Brock were present He and Nj.
Gates rhon Informed Mr.. Parks and Mr.. Ten Brock
that negotiations were at an end
After the formation Of The Conselidared Steel
and Wire Company. which ex-Judgc Gary and Mr..
Gates controlled. witness net Mr.. Parks. who said