Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-02-27

WdIheT, JCQu walker dS guardian vi
Andrew Carnegie Wilson, S. L. Schoon-
maker and John Pontefract, on behalf
of themselves and such other stock
holders of the H. c. Prick Company as
may choose to join in the suit as
plaintiffs, filed the much talked of bill
in equity to annul the coke contract
held with the coke company by the
Carnegie Steel Company, Limited, in
Common Pleas Court No. 2 this after
noon.
The bill names as defendants the H.
c. Prick Coke Company, a corporation;
Thomas Lynch, H. c. Prick, George
Lauder, D. M. Clemson, Andrew M.
IMoreland, James Gayley and Thomas
Morrison, composing the board of di-
rectors of said corporation, and the
Carnegie Steel Company, Limited.
D. T. Watson, Willis F. McCook and
John McCleave appear as counsel for
the plaintiffs.
The action is remotely connected
with the trouble now existing between
H. c. Prick, former chairman of the
Carnegie Steel Company, Limited, and
Andrew Carnegie, and was precipitated
by the filing of Mr. Tricks bill in
equity in Common Pleas Court No. 1
to secure an accounting of the affairs
of the Carnegie Steel Company, Linn
tied. In this case the plaintiffs seek
to restrain the defendants by injunc-
ton from selling, shipping or deliver
ing any coke to the Carnegie Steel
Company, Limited, under a contract
dated January l, 1899, at a price of
$1.35 ton; the contract to run for a
period of five years, and from settling
with the steel company for coke al
ready delivered under the contract. 1t
is also asked that the court annul the
contract and order an accounting.
The plaintiffs alledge fraud in the
obtaining of the said contract and
accuse a majority of the board of di-
rectors of the coke company of work.
ing
Solely for the Inherent
OF the Carnegie Steel Company, Lin
tied, with the purpose of cheating and
defrauding all stockholders of the
coke company not members of the
steel company.
1t is also claimed that if the con-
tract is carried out. the Frick Coke
Company will have to refund to the
steel company $4,000 on account of
coke sold to said steel company dur
ing the year 1899, and during the year
1900 it will cause a loss to the coke
company of not less than $4,000 900.
The bill sets forth that at the time
the grievances complained of happen
ed, Shoemaker owned $50 shares of
the capital stock of the coke COM
pany; Walker 1906 shares for himself
and 116 shares as guardian of Andrew
Carnegie Wilson, and Pontefract $50
shares.
The coke company, it is stated, is a
corporation under the laws of Penn
sylvania for the purpose of purchas-
ing, owning and mining coal and man
ufacturing coke and marketing the
same, and for many years past, has
been manufacturing upwards of g.
100000 tons of coke a year in what is
known as the Connellsville coke re-
gion, in Westmoreland and Fayette
counties, Pa. The capital stock of the
company is s10,000,O00 divided in 200,-
600 shares of the par value of $50.
The Carnegie Steel Company, Linn
tied, it is stated, pretends to be linn
tied partnership organized in 1892,
and is engaged in the manufacture of
pig iron and steel, requiring about
$500, 900 tons of coke annually. The
bill then says:
1.-THE board of managers OF said
steel company at the time Of the
grievances herein complained of, was
and still is composed of c. NJ. Schwab,
L. c. Phipps, W. H. Singer and A. R.
Peacock; the said Schwab is president
of said partnership association and
the said Moreland is secretary there
Of"
The Capital of the Company
is s25, 900, 900, Andrew Carnegie own
ing 5SIa per cent, while the other
members named, it is stated, own
varying interests subject to the will
of Andrew Carnegie.
The Carnegie Steel Company, Linn
tied, was the owner of So, 104 shares of
the capital stock of the coke company,
and Carnegie was likewise holder of
1,213 shares, which together consti-
tuted more than a majority of the
coke company's capital stock. This,
it is claimed, enabled the Carnegie
Steel Company. Limited. and Carne-
gle to elect their nominees as direc-
tors of the coke company and domi-
nate and control their action.
Some time In the year 1889. It Is