New-York tribune., 1921-04-07
Guggenhei1ns
Win Smelling
Go. Election
Their Ticket for Directors
Approved by Proxies for
682,223 Shares at Big
Meeting of Stockholders
Filers Insists That Defeat
Will Only Make Opposi-
ton More Formidable

The Guggenheim management OF the
American Smelling and Refining Com
pany was upheld at the annual meet
sng OF stockholders in Jersey City yes
serday. when proxies for 6s2,2a3 shares
, cut Of total of 100000 were voted
for the board Of directors recommended
Tor election. 1t WAS expected that Kari
tilers, former vice president and direc-
tor, who has charged the Guggenheims
svith mismanagement. would place an
;udependent ticket in the field, but
when he saw that no one named by
lin TO serve on the board could be
ected lie decided not 20 present their
names.
During the meeting however, Mr..
Iilers was in belligerert mood and
after Solomon Guggenheim had read @
twenty eight page pamphlet defending
the Guggenheim policy in conducting
Mr. Eiler charged that F. 8. Brownell.
chairman of the finance committee, had
once said to him,
II certainly do not approve OF all the
scts of the board, but what are you
going to do when you are working for
man?"
Mr.. Eilers said the man referred 70
was Simon Guggenheim, president Of
the A. S. & R. Company.
BrowneIl Denies Authorship
Mr. Brownell, who acted as chairman
of the meeting, denied that he had ever
made such a remark, to which Eilers
retorted:
"Then one of US Is not telling the
truth"
The meeting was the most largely at
tended in the history of the company,
more than one hundred stockholders
being present. The morning session
took place at Is Exchange Place. but
was adjourned in the afternoon to St.
Peters Hall, nearby, to enabla all the
attending shareholders to hear the pro-
ceedings.
Shortly after the meeting was called
10 order by Chairman Browncll coun-
sci for Mr.. Eilers presented a resolu-
ZION asking that an adjournment be
taken until next fall pending compile
non OF the proposed investigation Of
he company by the stockholders com
nittee, headed by Henry Evans, chair
man Of the Continental Insurance Com
pany.
Following an acrimonious discussion
of the merits of the memorial by the
Eilers faction and adherents of the
Guggenheims a vote was taken, which
resulted in victory for the manage
ment This vote demonstrated clearly
that the company would be able TO put
through its ticket for a new xoard of
q. clared open and the meeting adjourned
@or the afternoon session.
Guggenheim Reads Defense
This later meeting was taken up
largely by the reading of the Guggen-
After reviewing the history of the
American Smelling and Refining Com
pany, the nature Of its business. the
relation of the Guggenheim brothers
TO the board of directors, the forma-
Son of the American Smelters Securi-
ties Company. the A. s. and RS mining
ventures, and copper selling contracts
Mr.. Guggenheim took up the Eilers'
charges.
lie said that the Eilers family was
originally paid $7,000,Oo0 par of Smelt-
ing Company stock and million or
more in cash for two lead smelters in
Montana, one in Pueblo and q refinery
at Chicago, but now has only 1922
shares.
1T was not because of lack Of in
terest that Mr.. Eilers's connection with
this company ceased" Mr.. Guggenheim
stated "He might have sold every
share of his stock and still continued
as the trusted metallurgist, the head of
It's great construction department, even
It's vice-president, had he not been
weighed in the balance and found
wanting
Mr.. Eiers was dismissed for incom-
potency, for INSTRUMENTATION, for waste
full extravaganza and because his activ-
tiles constituted an increasing detr-
ment and constant menace to the
company"
In referring to his dismissal from
tne American Smelling Company by
Simon Guggenheim, president, Mr.
ltilers said he had been kicked out
body and soul" whereupon Mr.. Gug-
genheim remarked that "such action
had been for the best interests of the
stockholders"
Stockholders to Press Inquiry
At the conclusion Of Solomon Guc
IN defense of the management. counsel
Tor the Evans stockholders committee
explained that this group had avoided
making request for proxies, but that
It proposed to seek full investigation
of the company's condition for the pur-
pose of advising the stockholders as to
their future policy.
In statement issued after the
counting of the vote for directors Mr.
Eilers declared that notwithstanding
that the. Guggenheims had won the
election 1--WE feel that they will have
Increasingly to recognize the impres-
slvely growing strength of the opposi-
.tion of about 1000 stockholders with
more than 100000 shares"
''As the Guggenheim control has not
been eliminated" he added, 1--WE must
continue our efforts. We feel that the
increase in the number of anti Gugeen-
helm proxies from 1000 shares last
year to more than 100000, which are
now positively against them, plus a
greater number who refused to vote
altogether, is prophetic of cven-greater
increase next year, as the stockholders
become more acquainted with and alert
TO the disastrous results of outside
adverse control"