The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-02-11

Upon valuation Fixed by Mr.. Car
negie.
PITTSBURG, Feb 10.-H C. Tricks
suit against Andrew Carnegie and the
Carnegie Steel company to recover 81 ,0o5,-
0O0 claimed to be due him for his one
sixth interest in the Carnegie Steel COM
pany, and also to compel an accounting
for coke furnished by the Frick Ccal COM
pany to the Carnegie Steel company will
contain many sensational allegations
Some of the details were learned today.
Next to the claim for 81 100000, the coke
deal will be the feature Of the cases. 1t
will be alleged that the Frick Coke COM
pany. which is controlled by Mr.. Carne-
gle, entered into contract with the Car
negie Steel company to furnish from 10000
to 1900 tons of coke day at $1.S5 ton.
The present contract price of coke is from
$2.S6 to 1925 a ton. The wide difference
between the price Of the coke sold by Mr.
Carnegie to his steel company and that
sold to his rivals In the business shows
what an immense advantage he had over
his rivals who have to buy coke from
him.
Like everything else, Mr.. Carnegie con-
trolls the ConnellstlIe coke industry, and
fixes the price at which coke may be sold
in the region. 1t is figured out that dur
ing the present high coke prices that will
rule for one year, at least because of the
fact that the output Is sold for almost
the entire year, the Prick company will
furnish at least 100000 tons of, coke to
the Carnegie company at price that will
be $3.50 below what are considered lew
priced contract rates
LOSS FOR MINORITY.
This, for the year, would amount to
what the minority stockholders of the
Prick company might term a loss Of
Sc; 0OO, 000 1t. is claimed that next year
will be almost as good year as the pres
ent, although no one doub.s that the price
for coke, pig iron and all other products
will fall off some. 1t is asserted that, tax
ing the average Of what the next hve
years will be, the minority stockholders
cannot see where they are to gain mucn
by the Carnegie contract.
It is said that Henry Phipps Jr. and
John Walker, both stockholders in the
Frick company, will be interested in the
coke suit, although neither will speak or
it or admit having any connection what
ever with 1t.
The case will be watched with intense
interest by blast furnace men all over
the country, as 1t will probably reveal
how it is possible to make very cheap
iron in competition with the steelmakers
in all parts of the world.
The statement in the suit will contain
full history Of the negotiations to BUY
out Andrew Carnegie. This was the be-
ginning of the trouble. The seeds OF
discord were first sown last spring, when
Mr.. Frick, Andrew w. Mellon, Henry
Pbipps Jr. and ex-Judge w. II. Moore,
the Chicago promoter of steel combines,
conceived the idea Of reorganizing the
Carnegie company, greatly enlarging It's
capital and include the American Steel
and Wire, National Steel and Federal
Steel companies in mammoth steel
eembine.
MET HIM HALF WAY.
The Carnegie minority partners ae-
auiesced, as. the contamination of the
plan. would have made each independent
ly wealthy The idea was stosdeavecthe
control .of the new Carnegie company
with the owners of the old one and have
81 capital of about $3.50, 000, 000.s Mr.. Car
negie wanted $17O, 900, 600 for his controll-
ing. interest This made the value Of
the total number of shares, according to
Mr.. Carnegie's view, at least 4OeO0,0oo.
Mr. Carnegie.s stock increased from $ls.
DOC. 900 to $40, COX, 600. Mr.. Frick claims
ton from 81, 900 to 81, 0oo,0 600.
5 Mr.. Carnegies published interview, giv>
en- out Nov. IS last, when he said his stock
was worth much more then than 1t had
been when he gave the option to Prick,
will also be included in the statement.
The provisions of Mr.. Carnegie's Iron
clad" contract with his partners will be
laid bare. The agreement is a remarka-
BILE document, and will be assailed by 1t.
All retiring partners are compelled to
sell their holdings to Mr.. Carnegie on
demand. Mr.. Carnegies Ida of forcing
them to sell the stock to him is to pre-
vent it from getting into the hands OF
persons not connected with the com,
pany
Bitter differences are alleged to have
sprung up In the Carnegie company. A
feeling among the partners, which is said
to have had its birth with the efforts
of Mr. Frick and others to get control,
has been growing, and has finally Gull
minated In the establishment of two
firmly intrenched factions within the cor
poration.