The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-02-14


output and purchased other plants. ore
mines. etc.
Grenf Profits of the PInnt.
Carnegie lived In New York. passed
much of his time abroad. remaining at
one time for eighteen consecutive months.
He did not pretend to manage the cur
rent business. although he was consulted
as to the important matters. The bust
ness from 1922 to 1900 was enormously
profitable. growing by leaps and jumps
from year TO year. until, in lsaa. the firm
actually made. on Iow-priced contracts. in
net profits. after paying all expenses OF
all kinds. s2I.cOO.0oo.
In November, 1899. Carnegie estimated
the net profits, for 1900 at s4o.eo0coo. and
Prick then estimated them at 100000.
Its selling value.
Carnegie valued the entire property at
over s2so.Ooo9s. and avowed his ability,
in ordinarily prosperous times. to SELF the
property on the London market for Efoo.-
10000. or $500 90 900. In May. 1899. Carne-
gle actually received in cash, and still
holds si.i70.coo given him as mere bonus
for his ninety days option TO sell his 5sia
per cent. interest In this steel company
for t157, s5o.ooo
Frick's per cent. on that basis. would
be worth SIC. 2ss.ooo,
Carnegie Charged with Malice.
Prick now alleges. right at the head OF
this enormously successful business.
whereby. at least in part. he made for
Carnegie these enormous profits and val
,es. that Carnegie suddenly and With
maley olent intent towards him, on Deem
~ 4 ri, Jnr IrA re
his resignation as chairman. and this
without any reason except to crafty Car
negies malice Frick In the interest OF
harmony. gave his resignation and subse-
quently. on the 18th day OF January. 1860.
after Carnegie had thus deprived him OF
HIS ONCE. he demanded OF Frick that he
GFrick) should sell 10 the firm his inter-
est IN a. at figure which would amount
20 less than one half OF what this interest
IS fairly worth Frick refused to sell
at that price. bu. offered 70 sell and allow
three men to value the interest sold. Car
n~9ie refused this and left Frick. threat
ching him for nor yielding TO bis de-
msnd.
Carnegie's Fraudulent Purpose.
Ffick now alleges that, after his resig-
nation and at the time Of this last inter
view, Carnegie was fraudulently and Sc
cretly. without Tricks knowledge or con-
sent. attempting 10 carry out a scheme,
which II successful. would enable Car
nsgie, nesic hoped to confiscats Friek's
interest IN the firm NJ probably not much
over 80 per cent. OF IT'S real value: that
n. say not over 81 00o. 900 for what. on the
basis of Carnssie's option. was worth
SIG 2ss 600
This scheme Frick says he can prove was
10 reinstate and make operative an unex.
ccuted and abandoned so-calied fronclsd
agreement Of 1857. which related solely to
Carnegie Bros. a Co. Limited and never
did include the Carnegie Steel Company,
Limited, and also TO attempt TO make
binding on Frick another so-called IRON
clad agreement OF 1892 which Carnegie
never before had executed. which Henry
Phipps had always refused to execute,
and which many other partners had never
signed
Agreement Was Void.
This agreement. contemplated In 1899.
Carnegie knew, as Frick now alleges, was
absolutely void In 1880. and yet Carnegie
appears at meeting OF the board of
managers OF the Carnegie Steel Company,
Limited, held January 3. 1900 In Frick
absence. and passed false and misleading
resolutions. whereby he attempted to
make operative and reinstate the so-cail-
ed ironclad agreement of 1887. and also
directed his copartners TO sign the So
called agreement OF 1892. which neither
he nor many of them had Heretofore
executed All this. It is alleged. Carnegie
did secretly and purposely to conceal the
knowledge thereof from Frick
Carnegie was enabled 10 control His
partners. because most of them stlll owed
the frm money for their interests. ara
Carnegie, dominating the firm by a ma
tority interest, they were unwilling or I'M
able to withstand his demands Carnegie
induced some OF his co-par,ners to sign the
so-esiied agreement OF 1899 and then, WITH
out warning, sprung upon Frick notice
on January Ia 1900. which he had also caused
his co-partners secretly 20 sign, and whtca
was based upon the pretended existence Of
the so-eailea ironclsd agreements
ro"tentioss OF Carnegie.
Carnegie followed this notice by COMPEL,
ms on February /. 1900. Schwab, the presi-
dent OF the company, to transfer on The
books OF The company all F'ricks interests
in the Carnegie Steel Company. Limited. 10
the said company. and he now pretends
that he tcarnegiel can practically dictate
20 ffick the value at which he will take
the interests He claims that Frick is not
entitled TO anything for the good will OF
the company, IL not entitled 20 have his
interests valued as OF growing concern,
hut that he tCarnegiei can use old and
obsolete figures which have stood on the
books fcr wears. In many respects uncaans-
81, 50 as u reduce the value 81 Fr.ck's
interests IN The neishhorhood he hopes. 81
about @.@oso
where Carnegie woaid Proat.
A. Carnegie owns one-hst per cent ~
the earnest" Steel Company. Limited, he
viii therefore own more than one aif Of
the per cent. whlch Frtck seii-. and II he
can thus acquire per cent OF Frick's nold.
ings for what would amount to about q 600
go. he will make net PROFIT on that trans.
action based on hts own selling prfr, a.