New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-15
THE CLASH OF STEEL KINGS
LAWYERS WHO WILL CONDUCT THE
GREAT SUIT OF FRICK vs..
CARNEGIE.
CARNEGIE

x
newspapers to-day that the long threatened clash
of the steel kings had been finally precipitated by
H C. Prick fling his widely heralded suit against
Andrew Carnegie and the Carnegie Steel company.
praying for an equitable accounting OF the ex-
chairman's stockholdings in the giant steel con-
Germ. created sensation in financial and manu-
featuring circles here and the principal topic
throughout the city. The suit IS regarded as the
most important ever fled in connection with the
steel business and II is said is at stake
than any legal proceedings ever brought IN THIS
country to which all the parties were simply cit-
zens. Steel manufacturers view the trouble as
bitter personal struggle for supremacy. ard are
watching each move with intense interest
The legal talent called into action by the suit Is
array OF TIE leaders OF the profession IN this
State, with probably men OF National repute yet
70 be included. on Mr.. Tricks side are Jonn u.
Johnson. Of Philadelphia who stands az the -leao
equity Ia wyers OF that city, and perhaps OF
the state and who has been engaged in some OF
the greatest legal battles OF the country; David T
Watson. Of Pittsburg an attorney scarcely less
widely known and whose prOwess n the civil courts
of the State has been proved time and again IN
cases where vasr fortunes At stake, and nna4y
Willis F. McCOok. for years the personal counsei
and intimate friend OF Mr. FTck, whose ability
IL handling the affairs OF big corporations mas pul
him in the front rank OF the Allegheny county
bar. Strangely enough, M watson IS the ma
who originally drew up the noT famous lronc41U
a agreement for Andrew Carnegie. and when ne his
row been retained 70 ind a flaw IN and have de-
cIared invalid II Il said that Mr. Watson spent
the best part OF months in drafting TINS N
strumeut and when it was finished declared lhal Il
was the strongest paper Of the kind he had ever
seen formulated
As vet little has come to hight OF the plans MADE
By NJ. Carnegie to defend his company inter-
Csts although II is almost certain that Dal--ii'
s OFT & Gordon have been al work for days IN the
Carnegie defence. Congressman John DalzeA the
senior member OF this law firm is not in Pitts
burg and so far has attended none of the confer
ences which ara reported to have recently taken
place with Mr.. Carnegies adherents and repre-
sertatiyes in the steel company. but he will alto
ge,her likely. take a hand before long. other
prominent lawyers OF both this city and New
York are mentioned having been retained BY
Mr.. Carnegie. but just who will really De opposed
to the legal array Mr.. Fricks side cannot Ger
tainIy be ascertained until day Two has passed
and answer is made to the bill Mr. McCook said
today that he confidently expected the suit TO
come 70 trial before midsummer. and probably
much earlier
Late this afternoon the papers in the suit were
served on the attorneys Of the Carnegie company
DalzeH Scott & Gordon. The defendants have
fifteen days in which TO file a demurrer or an an
swer 70 the bill, and II is expected a demurrer VIII
be filed within a few days. and II an answer Is
necessary II will be fled later The attorneys for
the company unanimous in their retusei %
out for publication until after their papers a.
a1ce with President C N. Scnwao over the tele-
phone. but what action was taken could no' De
From one e the attorneys interested the state
Guides the possibility OF the reaching higher
body than the Supreme Court OF Pennsy! vanLa-
and that body will probably decide the controversy
finally. 1t was intiTnated to-day by one on the n
side that the basis Of defence will be that the
''irOnClad" agreement is a legal and binding docu-
ment: that the book valuations OF the holdings OF
the different stockholders is correct; thai while
the gross earnings OF the company are greater tae
would bring with the mortgages cleared on and
other obligatio settled
The allegations made by Henry c. Frick in the
action which he has instituted against Andrew
Carnegie and the Carnegie Steel Company, Limited
read with great interest by steel and iron
men here but none OF those seen by Tribune re
porters observation-disclosures whom was John W
Gates. chairman of the Board Of Directors Of the
American Steel and Wire Company-were willing
20 comment on the charges 10 discuss the reve-
lations made concerning the extraordinary profits
recently made ny steel companies. While II has
been matte of common knowledge that the steel
and iron industry has enjoyed unusual measure
OF prosperity since the revival OF business began.
the extent Of that prosperity, as revealed by the
figures set forth by Mr. Frick in his bill in equity.
comes as a surprise 10 the public
The Standard Oil Company the other day declared
a quarterly dividend OF 20 per cent on its SlooOoo09
common stock. which means. If the rate is main
tanned yearly dividend disbursement o. $4,000 600
But the profits OF this great corporation, which
nv and which embraces many foreign countries in
its opera TONS are relatively not as enormous as
are those Of the Carnegie Steel Company. which
corporation with a capital OF 81 600 600 according
10 Mr. Frick made last year low priced con-
tracts net pronts agsreSati1g $1,000 a1d W3lcn
on the estimates OF potn NJ 6rick ana Nj Car
The prosperity Of the Carnegie Company has been
duplicated during the last year although in lesser
degree, by all the steel and iron companies in the
United States. and the activity in the business
Increased their earnings, and have promptly put
large percentages Of the increase into purchases
OF steel rails: the price OF which has advanced
from SO 10 S5 a ton Many new buildings have
Steel and iron Shipbuildiug has developed. and
for the new vessels more steel and iron have been
nge of pressed steel cars and car equipmenand
10 meet its needs thousand tons OF steel day
United States for steel for bridges and railways
signed Contract 10 supply 10000 tons Of steel
rails 10 the Russian Government Under the in
long die are resuning work and improvements
and additions 70 them are steadily going on those
worked 10 their full capacity. vessels enough can
not be found on the Great Lakes 70 carry the iron
needed by the great manufactures. ana me
coke ovens are sufficient in number and ca
pacity 20 turn out the coke required oy the steel
Here is the record for single day as summarized
having already been noted IN The Tribune:
The Virginia Iron, Coal and Coke Company will
build steel plant az Ea. ben land
IN Everett. Mass, at cost OF 100000 for steel
plant
pany have resumed work after shutdown OF Two
months for repairs
The old rail mill Of the Bethlehem Steel Company
is being operated double turn, filling orders for
billets splice bars and beams
The MARYLAND Steel Company has closed con-
tract for 600 tons or rails go TO Norway
The s-Iement-Pond Company has secured an
order from The German Imperial Government for
Steel boring machine 10 cost S33. 600 for the Gov
eminent locomotive shops
THE National Tube Company, through its New
YORK sales ONCE. has Just closed important con-
tract 70 furnish the new water works system az
CSuadalatara Mexico. with over forty miles OF Its
special isp-welded steel pipe. fitted with converse