New-York tribune., 1907-10-02
VICTORY FOR GARY MEN
Minority Stockholders of american
FoundricS Defeated.

The annual meeting of the American Steel
Foundries Company in Jersey City yesterday re-
suited in a victory for the management over the
minority stockholders represented by Swartwou'
& Appenzelar. who have been demanding the
resumption of the dividends on the preferred
stock. The management controlled large MD
iorty Of the stock and easily elected all the
directors to fill the five vacancies in the board
A hot contest for control had been looked for
but when It came to a showdown Swartwout u
Appenzellar could only muster proxies for o6.9'o
shares out of a total of 100000 represented at
the meeting.
The question of dividend payments was not
determined at the meeting. but on the motion
of ex-Judge E. H. Gary. who presided. resolu-
ton was adopted providing for the appointment
of . committee Of not more than five nor less
than three members, to be appointed by the
chairman, with the minority represented. TO con-
fer with the directors to whether the COM
pany was able TO resume payments on the pre-
ferred stock. and to give them power TO employ
auditors II necessary. The committee will prob
ably be appointed to-day.
Before ex-Judge Gary's resolution was adopt
ed Richard H. SwarJwout proposed that Z. F.
Goltra. one OF the directors. and himself and a
third party TO be selected by them, be ap-
pointed a committee Of three TO make an eX-
animation of the books OF the company, with
power TO employ auditors. appraisers and such
other experts "a might be necessary. Judge
Gary said the auditor OF the company had been
appointed by the directors, and they considered
his audit as sufficient. He said, however. that
the management had no objection to the indie
pendent audit asked for II the members OF the
committee would defray their own expenses. but
that he would object 10 tho company being
saddled with the extra expense. He then sug-
gested the appointment OF a committee, al
ready stated. The original resolution made by
Mr Swartwout was withdrawn and Judge Gary's
resolution was adopted by 19494T to $500
votes.
Mr. Swartwout opposed resolution approving
the annual report and balance sheet on the
ground that the directors had failed to pay divi-
dends on the preferred stock and TO apply: the
surplus for that purpose, but the resolution was
adopted by a large majority.
OF the directors elected at yesterdays meet
ing four were reelected. the only new member
being Maurice Backman. Those reelected were
w. w Butler. f. F. Galtra, w. d. Sargent and
Arthur J. Eddy The following the ticket
offered by the minority stockholders: p +.
Galtra, c. II. Wiltsie. Samuel Mcclure H. II.
Haines and Richward H. Swartwout.
Paul Appenzear said after his return from
the meeting that. while the minority stockhold-
ers had been unsuccessful in their attempt to
elect a representative on the board. they had
practically gained what they had been contend
ing for. What we are after" he said. is a re-
sumption of the dividends, and the fact that a
committee is to be appointed which are
to have representation shows that the manage
1nent recognizes that in earnest in our
demand and will order resumption OF the
dividends If the condition of the company war
rants it."