New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-08
ANSWER Gates CHARGES
Locomotive Directors Say In
vestigator Clears Them.
MO ACKNOWLEDGMENT SEEN
Restoration of Old Officials AL.
legged To Be Object of Pro-
testing Stakeholder.

The American Locomotive Company
yesterday made public its answer to the
charges made last week by Isaac NJ. Cate,
a large stakeholder. that the company is
being improperly managed and that dras-
tic changes should be made at the annual
meeting on October q. Mr.. Cate has re-
quested that the shareholders send proxies
to support him in his contention. The
company's reply is signed by Harry Brou-
ner and George Il. Sheldon, who are lead
ing directors.
These directors say that they already
have under investigation charges against
the officers and directors made by Mr..
Cate earlier in the year by committee
consisting of Thomas Thacher. of the
firm of Simpson. Thacher & Bartlett, gen
eral counsel of the company: John w.
Griggs, ex-Attorney General OF the United
States and Ex-Governor of New Jersey,
and Albert II. Wiggin, president of the
Chase National Bank
This committee" adds their statement.
"as SOON as possible entered On the work
of examining into the numerous matters
which are the subject Of criticism; and TO
assist them as to which they technically
were not qualified, they engaged the SER
vices OF John Havron. former president
Of the Rogers Locomotive Works. and di
rected him TO thoroughly and carefully
examine the books. papers. contracts and
practices OF the company. and to make
report in writing TO the committee show
ing his findings Mr.. Havron. after hav-
ing been engaged between three and four
months continuously in this work, sub
mitted his report to the committee on
September 49,
II is pointed out that this report has
not as yet been made public, because of
a period Of not less than seven years
which is covered in the investigation AS
soon as the investigation is completed. II
is TO be submitted to the board OF direct
ors.
In a communication TO the directors,
dated April u. Mr.. Cate denounced the
proposed investigation by this committee
as an attempt 10 whitewash. IL is claimed
by the signers OF the statement made
public by President Marshall that Mr..
Cate subsequently. when advised by the
chairman Of the investigating committee
tnat Iney OeSlTtu lIOln MN bhNH hHpHl-
edge and information az he possessed 10
assist them in their investigation, he con
fessed he had no personal knowledge that
would enable him TO qualify as a wit
ness.
1t Is stated that the selection OF Mr..
Havron as an expert was not pleasing 10
Mr.. Cate because the latter desired TO
name the man who was TO conduct the
investigation. AS to the imputations OF
Mr. Cate upon the integrity Of the officers
of the American Locomotive Company,
the following extract is quoted from Mr.
Havron's report:
"It is only proper to state that after
over three months investigation. during
which time n careful scrutiny OF bids.
bills and correspondence covering the en-
tire period OF the company's existence
was made, not bit OF evidence OF cor
rupt practice on the part OF the com
pany's officials was found"
The answer to Mr. Gates letter con-
cludes by saying that his particular object
Is to call back and restore 10 power as
officers OF the company certain officials
who about the time OF the accession OF the
present president severed their relations
with the official staff