The times. [volume] (Richmond, Va.) 1890-1903, 1900-03-23
IBA Tie 0 IEEL /
KINGS | ! IS { ENDED. E! D E. !.
Carnegie Company Be
comes Stock G Company.
.IRONCLA 2,lI GREEM.EI.N'I'T:l. u
Els Wiped Out and All Litigation Of
Partners IS Dropped.
a VICTORY FOR 4. c, FRlcK.
He virtually Secures all He Has Con-
tended For-To President schwab
is Given the Credit OF Eject
ing the Amicable Ar
raugemcnts-The
| Provisions
rs Wiped Out and All Litigation of
Partners IS Dropped.
a VICTORY FOR Il. c. FRIC;K. !;

P1TTsBuRG, PA, March 22.-The Car
nerie steel Company, Ltd, becomes
stock company with capital var1ously
estimated at from soc, ,O0O, 900 to $3.50, 100000,
the famous ..ironclad agreement Is
wiped out, all litigation between the pau Z
ners in the Carnegie Company IS dropped
and Fl. c. Frick, the former president OF
the company, virtually secures all he has
contended for.
These facts are embodied In an au-s
thorized statement issued tonight by the
Carnegie Steel Company, Ltd The At
lantic City conference resulted ID an
agreement signed by all the parties m
terested except Mr. F.rick and SJohn
Walker. the latter the principal plalntin
In the suit against the Fl. c. Frick Coke
Company.
The document reached Pfttshrrg to-day,
and after comparatively brief confer
erce between the two gentlemen, was
signed by both of them
A STOCK COMPANY.
To President C. NJ. Sctwab is given the
credit for 'effecting the amicable arrange
ment. He presented a number o. PROPOSE
tions, all rejected until he advoca ted the
origin OF stock company, the capital to
ne based upon the value of the company
| properties and its earning capacity, ana
the partners in the limited corporation
to receive stock proportiona.e to their
present holdings. AS the capital OF the
Carnegie Steel Company, Ltd. is S2oo,oGo,-
Geo. under the proposed plan CT reorssl.i.
! zation each partner will hold either eight
or ten times as much stock in the new
corporation
AS Mr.. Frick holds 6 per cent. of the
capital stock in the Carnegie steer
! Company he will receive in stock Of the
| new concern s12,o00.G GOO, if it is capital
izesA at $500, 900, Geo: 100000 II at sse.--
| OeO,J0 FIis intention in his suit was
! that his stock was worth at least sl5,-
oO,. .OOO ana he sued to recover the DIFF
I ference between that and the amount
offered him when he was invited, under
| the ..iron-cIad.' provisions, to resign
Mr.. Frick said tonight that the ar
rangement was satisfactory Both ne
and President Schwab will be the head
Of the combination. and under the pres.
| ent arrangement no iron-clad agreement
! is possible.
THE MEETING.
| The stockholders meeting, at which
! the terms of agreement were sanctioned
/ to-day. was attended by all officials and
| eonsuItins, partners of both companies
| now within reach.
On the basis Of $3.50 COO,0G0 capitalization
/ of the new company, MIR. Carneste's
! holdings. 5S1-2 per cent. will be worth
/ s146, go, eco. Henry Phillips. Jr's. inter
| tes, II per cent, s2I5GO,0cO. and II. =.
/ tricks 6 percent. will stand him Slo,-
Oce,Cee. George Lauder owns ! per een..
| and President G.. EI. Schwab per cent
| The Carnegie Steel Company, Limited,
| and the H C. F'rick Coke Company, au-
/ thorize the following statement:
..rhe partners of the Carnegie Steel
| Company. Limited and the Stockholders
/ of the III. C.. Frick Coke Company, have
I agreed upon a plan OF reorganization,
! yesting the ownership and control OF
said companies in one company to be
| Incorporated under the laws of New
I Jersey. -
.The effect of the proposed reorsaniza-
/ tion will be to terminate the equity
| proceedings instituted against the car
| nerie Steel Company. Limited. and II.
| c. Fricl Coke Company.
! .sTfe articles of association of the car
/ neeie Steel Company, Limited, as a Inn
/ tied partnership organization, expire by
| limitation April 1. 1861. but the change
contemplated will be eHectetl oe1oTe eii.lt ID
/ date Deserving employees can be
I interested and received into the company
/ from time to time upon exactly the same
] terms as others have been admitted III
! the past.
- PENNSYLVANIA CHARTER.
..AIl the various interests, including the
/ II C. FricE Coke Company, Will remain
i as now, under Pennsylvania charters, the
steel company taking a Pennsylvania
/ corporate charter instead Of renewing its
| articles Of limited partnership. -. A
! charter under the laws of New Jersey
enables control Of the interests concerned
4 wherever situated IN any State or Terri
/ tory OF the Union. Other powers are
\ also obtained which are essential to a
/ concern whose sphere of operations has
/ grown to embrace the mines and markets
| of the world. with railroads and fleets,
/ something never contemplated when
/ Pennsylvania,s present restricted laws
4 were adopted. The stocks and bonds OF
the new corporation, instead OF being
! offered to the public as once cOntem-
plated, are taken by the present owners
i thems elves. = = = t= 81
( The new company absorbs the stock
taof The Coke Company, and thus all Of
the Coke Company's stockholders become
stockholders of the new concern, including
Mr.. Frick, whose interest IN the steel
company Will be thus protected, which Is
satisfactory to all parties, the controlling
/ partners expressing no desire to gain
peeuniarily by their recent action
.Ir. Carnegie has given President
Charles H. Schwab his proxy to act as
required, and Mr. schwab will continue
/ as the active head OF the new company ! :.
PROPERINES INCLUDED
The properties to be Included In tbs
tre-organizatio OF the Carnegie Steel
Company 5L;d. and allied Interests, arl
las follows.
/ The Carnegie Steel Company Ltd, owns
/ ing the Edgar Thompson Works Beo.
semer, Pennsyiv ivania. including Eesats
/ Thompson blast fun sces, E.dgar sTsss n.a-
i son foundary, Edgar ThGmpsan Steel
/ tyvorks: the DuGuesne Works. Duquesne,
/ Pa. including Dueuesne b.ast furnaces
and Duquesne s.eel wosks; the Home
ffzstead Steel Works II unial ana Hons
/ stead. Pl.. Including Bessemers DtesI -