The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-23
The Famous TrOnclad" Agreement
Wiped Out and All Litigation
Taken from the COdrts.
NO STOCK ON THE MARKET
MEMBERS OF THE NEW CORPORA
TION WILL TAKE 1T ALL.
To BE Capitalized mt Over Three Hum
dred Millions-Statement by
the Companies Interested.

PITTSBURG, Pa, March 22.-The Car
negie Steel Company limited, becomes a
stock company with capital variously es-
timated at from $780, 000 900 to $3.50 600 900, the
famous ''ironclad agreement is wiped out,
all litigation between the parties in the
Carnegie Company is dropped, and II. c.
Frick, the former president of the COM
pany. virtually secures all he has con-
tended for. These facts are embodied in an
authorized statement issued tonight by the
Carnegie Steel Company, limited. The At
lantic City conference resulted in an agree
ment signed by all the parties interested.
except Mr.. Frick and John Walker, the
latter the principal plaintiff in the suit
against the II. c. Frick Coke Company.
The document reached Pittsburg to-day,
and after a comparatively brief conference
between the two gentlemen was signed by
both of them.
To President c. NJ. Schwab is given the
credit for effecting this amicable arrange
ment From the first he was opposed to
allowing the contentious between the part
ners to reach the courts. Unable to pre-
vent this. after the litigation was begun
he bent his energies towards securing a
StttiSIuSut WOulu De satisfactory TO all
the parties. He presented number of
propositions, but one after another they
We're rejected, until he advocated the or
ganization OF stock company, the capital
to be based on the value of the company's
properties and it's earning capacity, and the
partners in the limited corporation to re-
ceive stock proportionate to their present
holdings.
AS the capital Of the Carnegie Steel Com
pany, limited, is SIS OO0, ,0OO under the pro-
posed plan of reorganization each partner
will hold either eight or ten times the
amount in the corporation. AS Mr.. Frick
holds Per cent. of the capital stock in the
Carnegie Steel Company, he will receive in
stock of the new concern 100000 if it is
capitalized at $500. 600 900, and $4,000 600 if
the figure is put up to $3.50. 600. His con-
tention in his suit was that his stock was
worth at least s15,oOO,00O. and he sued to
recover the difference between that and the
amount offered him when he was invited.
under the ironclad provisions. to resign.
AS soon as the signature of Mr.. Frick and
Mr. Walker were affixed to the agreement
to-day word was telegraphed to Mr.. Car
negie, and this evening he authorized the
issue of a statement on behalf of the Car
negie Steel Company, limited, and the II.
| c. Frick Coke Company.
The stockholders meeting, at which the
terms of the agreement were sanctioned to-
| day. was attended by all of the attorneys
| and consulting partners of both companies,
with the exception of Mr.. Carnegie and
those who are abroad and in distant parts
| of this country.
| On the basis of $3.50. 1000 capitalization OF
| the new company Mr. Carnegie's holdings,
5S1z per cent, will be worth STAG. .25ooOo; Hen
| ry Phipps, jr.s, interest, II per cent, ST.
| 50O.0O0 and II. c. Fricks, per cent. will
stand him s15,OOO,OO0. George Lauder owns
per cent and President c. NJ. Schwab
per cent.