Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-02-14

by leaps and jumps, from year to
year, until, in 1899, the firm actually
made on low priced contracts In net
profits. after paying all expenses of
all kinds, 1921 100000.
In November, 1899, Carnegie esti-
mated the net profits for 1900 at
$4O,OOO,OOO, and Frick then esti-
mated them mt $4x,5OO,OOO.
Carnegie valueu the entire prop
erty at $25O,OOO,oOO, and avowed his
ability, i'm ordinarily ~per
times, to sell the property in the
d markets for one hundred
million pounds sterling, or $500, OOO,-
OOO
In May, 1890, Carnegie actually
received in cash, and still keeps
~$1,17O,0OO, given him as a mere
bonus for his ninety days option to
sell his 5S 1-2 per cent. interest in
this steel company for $157,95O,O~o -.
Tricks six per cent, on this
basis, would be worth $16,23s,OOO.
Flick o alleges, right at the height
OF this enormously successful business,
Whereby, at least, in part, he made fer
carnegie these enormous profits and
values, that Carnegie suddenly, and
with malevolent intent towards him, on
December A, 1899, arbitrarily demanded
OF him his resignation as chairman, and
this without any reason except to graf
lily Carnegie's malice.
Frick, in the interest of harmony,
gave his resignation and subsequently,
and on the 18th day Of January, 1900,
after Carnegie had thus deprived him
OF his office, hes (Carnegie) demanded
of Prick that he (Frick) should sell to
the firm his interest in it at a figure
which would amount to less than one
half of what this interest is fairly
worth. Prick refused to sell at that
price, but offered to sell and allow
three men to value the interest sold.
Carnegie refused this and left Prick,
threatening him for not yielding to his
demand.
Frick now alleges that after his res
ignation and at the time of this last
interview, Carnegie was fraudulently
and secretly, without Tricks knowl-
edge or consent, attempting to carry out
a scheme, which, If successful, would
enable Carnegie, as Carnegie hoped, to
confiscate Tricks interests in the firm
at probably not much over 33 per cent
Of it's real value; that, says not over
$1,000, 900 for what on the basis of Car.
negie's option, was worth SIG $685. 00.
This scheme, Frick says, he can prove
was to revive and reinstate and make
operative an uneXecuted and abandoned
so-called ironclad agreement of 1887,
which related solely to Carnegie Bros.
& Company, limited, and never did in
clude the Carnegie Steel Company, Inns
tied; and also to attempt to make bind
ing on Prick another so-called ironclad
agreement of 1892, which Carnegie
ever before had executed, which Henry
PhippS had always refused to execute,
and which many other partners had
never signed. This agreement contem-
plated, in 1892, Carnegie knew, as
Frick now alleges, was absolutely void
in 1899, and yet Carnegie appears at a
meeting of the board of managers OF
the Carnegie Steel Company, limited,
held January s, 1900, in Tricks alb
sence, and presented
False and Misleading Resolutions
whereby he attempted to make oper-
alive and reinstate the so-called iron
clad agreement of 1897, and, also di-
rected his co-partners to sign the So
called agreement of 1892, which Meth
err he nor many of them had hereto
fore executed. All this, it Is alleged,
Carnegie did secretly and purposely
concealed the knowledge thereof from
Prick. .
Carnegie was enabled to control his
partners because most of them still
owed the firm money for their inter
ests, and Carnegie, dominating the
firm by a majority interest, they
were unwilling or unable to withstand
his demands. Carnegie induced some
of his ~co-partners to sign the so-called
agreement of 1892, and then, without
warning, sprung upon Prick a notice
on January Is, 1900, which he has also
caused his co-partners secretly to sign,
and which was based upon the pretend
ed existence Of the so-called ironclad
agreement.
Carnegie followed this notice by
compelling, on February 1, 1900.
Schwab, the president of the COM
pany, to transfer on the books of
the all Tricks interests in
the Carnegie Steel Company, Linn
tied, to the said company, and he
now pretends that he ~(Carnegie) can
practically dictate to Frick the
value at which he will take these
interests. He claims that Frick is
not entitled to anything for the
good Will of the is not
entitled to have his interests valued
as of n going, but that he (Carnegie)
can use old and obsolete figures
which have stood on the books for
years, in many respects unchanged.
so as to reduce the value of Tricks
interests to the neighborhoOd, he
hopes, of about $4,000, OOO.
AS Carnegie owns 5Sh per cent. of
the Carnegie Steel Company, limited,
he will, therefore, own more than half
of the six per cent. which Frick sells
and if he can thus acquire three per
cent. of Tricks holdings for what
would amount to about $4,000, 900, he
will make a net profit off of that trans
action alone based on his W selling
price, as above stated, in the neigh
borhood of $1,000, 900.
Frick further says that never since
1887 had either firm attempted to force
a partner to sell. That no interest
whatever was ever acquired under
the so-called agreement of 1887 and
none under the M of 1892, except
that at times when the financial condi-
ton and earning power of the COM
pany were radically different the com
pany did purchase the interests nj