The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1900-02-15

ly less widely known and whose prowess
in the civil courts of the states has been
proved time and again in cases where
vast fortunes were at stake, and finally
Willis +. McCook, for years the personal
counselor and intimate friend of Mr..
Frick, whose ability in handling the af-
fairs of big corporations has put him in
the front rank at the Allegheny county
bar. Strangely enough, Attorney Wat
son is the man who originally drew up
the now famous "ironclad' agreement
for Andrew Carnegie, and which he has
now been retained to find a flaw in and
have declared invalid. 1t is said that
Mr.. Watson spent the best part of three
months in drafting this instrument and
when finished declared that it was the
strongest paper of the kind he had ever
formulated.
As yet little has come to light of the
plans made by Andrew Carnegie to de-
fend his company's interests, although it
is almost certain that Dalzell, Scott &
Gordon have been at work for days in
the Carnegie defense. Congressman John
Dalzell, the senior member of this law
firm, is not in Pittsburg, and so far has
attended none of the conferences which
are reported to have recently taken place
with Mr.. Carnegie's adherents and repre-
sentatives in the steel company, but he
will altogether likely take hand before
long. Other prominent lawyers of both
this city and New York are mentioned as
having been retained by Mr.. Carnegie,
hut just who will really be opposed to the
legal array on Mr.. Frick's side cannot
certainly be affirmed until day or two
has passed and answer is made to the
bill. Attorney McCook said today that
he confidently expected the suit to come
to trial before midsummer and probably
much earlier.
At noon today no notice of the suit had
been served upon the defendants or their
counsel. Secretary Moreland of the Car.
negie Steel company said that he had not
seen the bill and refused to talk about it,
When the company had anything to give
out he said, it would come through the
regular channel.
Dalzell, Scott & Gordon, the defend
ants counsel, were equally reticent. Pres
ident G. NJ. Schwab, who is looked upon
as Mr.. Carnegies personal representa-
tive during his absence from the city,
left for Washington last night. 1t is sup.
posed that he is on his way to see Mr..
Carnegie, who is at Dungeness, Fernan-
dina, Fla, visiting his sister-in-law, Mrs.
Thomas NJ. Carnegie.
Mr.. Frick's contention, as set forth in
the bill in equity, may be stated briefly
as follows:
He charges Carnegie with trying to
force him out of the steel company
through personal malice and by trickery
He alleges fraudulent scheme by
which Carnegie Is to obtain Frick's stock,
valued at more than $16,000000, for $6,-
100000.
Declares that old and void "ironcad'
contract is used by Carnegie in his plan
to compel Frick to sell his stock at his
(Carnegie's) price.
He demands that IL Carnegie declines
to accept his proposal to buy his (Frick's)
stock at its market value, as fixed by
three arbitrators, the Carnegie Steel COM
pany be dissolved and a receiver appoint
ed to wind up the business.
In 1890 Carnegie estimated the net
profits for 1900 at $40,OOO,0O0, and
Frick estimated them at $42,OO0,000.
Carnegie at that time valued the prop
erty at more than $250,00 900 and de-
clared he could sell it on the London
market for $50O.00O,OO0.
Based on these figures, Frick declares
that his per cent interest is worth $18,-
238.0O0.