New-York tribune., 1902-08-20
GATES LOSES HIS FIGHT,
rNrrNcrroN TO KEEP osGooD FROM
REFUSING PROXIES DENIED.
opposing LAWYERS CHARGE THAT PRoH-
les MAY BE FoRGED-THEY ALSO
SAY THEY WE'RE BOUGHT. AND
THEREFORE ARE ILLEGAL


raznxer Aur l9-The Gates faction Of the
-olorado Fuel and Iron Company has lost an
other round in the battle for control Of that
cor,nanv Judge Riner of the United States
T1,s,rict Court tonight denied the application
for preliminary injunction to prevent officials
OF the company from refusing to allow the Gates
party 10 vote proxies they hold at the stoch-
holders meeting tomorrow.
The suit which was brought in the name Oh
John 7 Mitchell and others. against the Coio-
rado Fuel and Iron Company, was based on the
alleged fraudulent and void bylaw which was
.sdopted by the board of directors of the COM
pany July 80.
Judge Riner held that the allegations in the
till r. COMPLIANT we're fully met and denied
The court was not expected to pass on questions
ri 1ar- However he would say that on its
Ssne the bylaw provided for orderly and law
fuI method of conducting shareholders meet
ing. and that apparently there was no other
purpose in view.
The annljcstion was made several days ago.
and brilliant array OF legal talent was Ie-
tanned by each side. The courtroom to-nlghI
was crowded with spectators. Mr. Gates ana
mis- friends listened attentively to the reaolhs
of the decision. and as soon as II was 'oiii-
rIeted left the courtroom with their attorneys.
When the argument resumed TINS morn
,rg loci ? Vale and F. ". y. Cutcheon, on be
half Of the Gates faction. alleged that at a Sc
rret meeting on July 50 Of The Colorado mehl-
bers Of the board oT directors Of the Ceiorauo
Fuel and Iron Company. the bylaws were 50
amended that proxies held 10y Gates ana ms
associates could be thrown out At the annual
elec+ion The bylaws were amended so that
the chairman of the meeting should appoln'
l1elIers .n1pov cred to pass on the proxies as
they were presented The tellers were thus
practically made 2 committee on credentials
and as they would he Osgood men they Wouiu
reject votes supporting Gates. il was alleged
Gates asked the court 10 order that chairman
si,e selected by majority Of votes
Mr. Reaman and 9 L Hughes. for the cs~
rood partv replied that sixty thousand bona
6ae votes held by Chairman 0sgood and his
friends represented the majority Of the real
holders of Fuel and Iron stock. majority o.
the proxies held hy Gates. II was sald repre-
sented a gambling class. not permanently ~. III
ferested in the company. and secured py '1attS
by actual payment OF money ms was coh
1rary 70 the laws Of New-York- Some OF the
proxies might be forgeries. and IN any event Ile
list vas illegal and should be thrown out Us
good. his lawyer said. repeatedly refused &c
sonspire with Gates in turning the Fuel and
Iron Company over ~ the steel trust ana hdd
Hhus incurred the III viii Of Gates
Cfates's attorneys filed affidavits signed by all
She plaintiffs denying that they had purchased
r7royies or that il was their intention sell out
70 the Steel Trust When Mr. Vale referred
TO the latter point in his closing argument
Judge Riner interrupted him "a say that ii was
not necessary 70 spend any time on that sub
>iect
Nr Vale closed hy declaring that there were
swo fundamental contentious made by the
ylsintiffs First. that the stockholders be given
the right 10 know what the books or the com
1anv showed with reference TO their rights ana
second that a majority Of the bona noe STOCK
holders he given the right to exercise thelr con
troll in the determination OF various questions OF
dispute It should he the right or the STOCK
holders to determine the validity or the proxies
and not that OF tellers named by Chairman
4sgood r., z
Il am not trying 10 get the Colorado Fuel ana
Iron Company to sell out to the United States
Steel CORPORATION" said Gates after the court
sdiaurnei That, as I see it. has nothing 10
DO with my rights to the control CT the corpora
ton but the other side has included IN Its am
s7avits that alleged fact. and they might as wen
know such is my intention.
The United States Steel Corporation does not
want the Colorado Fuel and Iron Company IL II
had wanted il il would have got IL at the time II
took in all the other subsidiary companies. and
neither Osgood myself nor any one else out
side of the steel company could have prevented
st
Attorney General Post said to-day that the
laws of this State were sufficient to prevent con-
ssolidatian of the Colorado Fuel and Iron Com
pany with the Steel Trust. and action would be
taken TO prevent such consolidation II II were
attempted
II Is said that two separate stockholders
meetings will be held Tomorrow. the one called
10y the present officers Of the Colorado Fuel and
Iron Company and another by Mr. Gates and
ahose whom he represents. Each Will elect Of
5cers and transact other business, according 70
the report current tonight.
John c. Osgood. president of the Colorado
Fuel and Iron Company. refused 10 say whether
the scheduled stockholders meeting would be
r7e1T