New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-22
ALCO STOCKHOLDERS
GET NO SATISFACTION
Majority Fails to Explain Mis-
management Charges or to
Promise Salary Economy.
OLD BOARD IS REELECTED
Counsel for Minority Protes-
tants Fail in Effort to Have
New Investigation of
Corporation.

The largest number of stockholders that
ever attended an annual meeting OF the
! American Locomotive Company gathered
ut the company's offices yesterday in the
Hudson Terminal Building to hear what
repIv the MANAGEMENT had TO make to
the recent charges of Isaac NJ. cate. n
large Baltimore stakeholder, that the
company is not being managed in the
interests of the stockholders. Among the
things that Mr.. Cate had asked to be
made public were the reasons for the
discontinuance of the manufacture or
automobiles, at a contingent loss of g.
800 coo. and why the company had pur-
chased a large part Of its locomotive sup
plies from other concerns at prices higher
than those at which they could have
been manufactured at their own plant
Special effort was made by Albert
Woodman and r. T. Whltehouse. counsel
for Mr.. Cate. who was not present at the
meeting. 10 have made public the report
of the special committee appointed to IN
vestigate the company's affairs. but 10 no
avail Mr.. Woodman was told by fresi-
dent Marshall that the report had n"'
vet been completed. and for this reason
| he did not deem it wise TO publish only
a portion John W. Griggs. Ex-Governor
OF New Jersey, special counsel Tor the
! company and a member Of the committee
| in question, seconded President Mar
/ shall $ explanation.
| After further vain attempts by MT
| Gates counsel 10 obtain any definite as
surances as TO when the report OF the
! investigating committee would be made
! nubllc and whether. even then, II would
| be sent TO the stockholders. Charles W NIX
/ ing Baker. editor OF THE Engineering
News" presented a resolution that an
| INDEPENDENT committee be appointed to
! investigate Mr.. Gates charges. composed
| Of the following: William r. WILCOX for
mer chairman Of the Public Service Com
| mission. Herbert Knox Smith, former
| Commissioner OF Corporations, ana w D.
| Wilgus. a former vice-presldent OF 'he
! New York Central Railroad and wen
| known consulting engineer. Following
| acrimonious discussion. motion was
| made TO lay the resolution on the table.
| Il was at this point that the majority
| stockholders played their best cara
/ George X. Sheldon. prominent director
OF the American Locomotive Company
who had been characterized by MI cate
| as being beyond Ieproacn, stated that
! he held proxies for S30.o",~' II the ~
| $1,000 outstanding stock, ana No'ed 10
table the resolution The minority inter
ests were dumfoInded at this sudden de-
feat and charged the company with usina
steam roller methods 10 carry out the
MANS of the management. The proxies
| held bv Mr.. cate and voting In favor OF
the resolution amounted To 5000 shares
made I'D OF /. 900 individual stockholders.
/. clark seelye. president emeritus OF
smith College said that he had come 20
the annual meeting with the intention
OF favoring the appointment OF ne" III
vestigating committee, but he deciareu
later that he had reached the conclusion
that the committee already at work
should be given opportunity TO make
full report before the appointment OF
new committee Mr.. Seelye reviewed the
charges made by Mr.. Cate against the
present management Of the company ana
declared that the explanations offered by
President Marshall were satisfactory.
Among other disclosures Mr.. Seelye
brought out that the chief executive OIL
aries totallng approximately S5ivo
wear made up as follows: President Mar
shall, 5000: j. McNaughton, vice-presi-
dent 500: Leigh Best vice-president
So. 900: G. Il. Denny, secretary and treas
urer. $1,000. and Joseph Davis, controller
$1,000. In addition TO these sums the
officers were accustomed when there were
sufficient surplus earnings over the pre-
ferred stock 10 receive annual bonuses
OF from % per cent to 30 per cent TO the
exclusion OF the rights Of the common
stock holders This information brought
forth a storm OF criticism and a request
that bonuses he discontinued i'm the tut
ure. but with no assurances, however.
that such a policy would be followed.
President Marshall in answer to the
charge that many OF the directors Of the
company held only a small amount OF
stock said that. speaking for himself. he
held 600 shares, OF which 400 shares were
I'm his wife's name He also declared
that he was a director OF the Railway
Steel Spring Company only TO acquire
a wider knowledge Of the trade In which
he was interested.
The question was asked by Mr.. Gates
counsel why a sum so large as &3OO,OO
was set aside to iquidate the American
Locomotive .Company's automobile bust
ness In reply President Marshall said
that this amount would doubtless not all
be used. Mr. Woodman hereupon criti-
cised the management for appointing a
committee several years ago TO make an
investigation OF the automobile business,
while the only knowledge the stockhold-
ers received Of the result of their inves-
legations was tho bare announcement
that this business would he discontinued.
At the conclusion OF the meeting the
steamroller again asserted its power by
re-electing the company's retiring board
Of directors, thus insurlng the continu-
ance OF the present management for an
other year. President Marshall issued
voluminous typewriter statement to re-
flute the charges made by Mr.. Cate.