The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-02-27
TO ANNuL COKE CONTRACT.
A Case Precipitated by the Filing OF
Tricks Suit.

Pittsbrrg. Pa, Feb. 26.-John walk.
or John Walker, guardian OF
Andrew Carnegie Wilson, ). H.
Schoonmaker and John Ponte-
froct on behalf of themselves and such
other stockholders Of the H. c. FricE
Ccmrapy as may choose to join in the
sutas plaintiffs, filed the much-talked1-ol
biIT in equity to annul the coke. contract
held with the coke company by the Car
nagie Steel Company, limited. an Com
mon Pleas Court No. ,, late this after
noon.
This action is remotely connected
with the trouble now existing between
I'll c. Fr:ck. former chairman of the
Carnegie Steel Company, limited, and
Andrew Carnegie, and was precipitated
by the recent filing of Mr.. Frick's to
secure an accounting of the affairs OF
the Carnegie Steel Company, limited.
The bill names as defendants the IL.
C. Frick Coke Company. a corporation
Thomas Lynch. II. c. Prick, George
Lauder, D. NJ Clemenson, Andrew M.
Moreland, James Gayley and Thomas
Morrison. composing the Board of Di-
rertors of said corporation and the Car
negie Steel Company, Limited.
The plaintiffs seek to restrain the de-
PENDANTS by injunction from selling. snip
ping or delivering any coke to the Carne-
Gle Steel Co., Limited, under a con-
tract dated January LIST. 1899, at a
price of S1.35 a ton; the contract to
run for a period of five years and from
settling with the steel company for
coke already delivered under the con-
tract.
1t is also asked that the court annuI
the contract and order an accounting.
The plaintiffs allege fraud in the obtain
inc of the said contract and accuse ma
jority of the Board OF Directors of the
coke company of working solely for the
interest of the Carnegie Steel Company
Limited, with the purpose of cheating
and defrauding all stockholders of the
coke company not members of the steel
company. 1t is claimed that if the con-
tract is carried ont, the Prick Coke Com
pany will have to refund to the steel
company S596000 on account of coke
sold to said steel company during the
year 1859. and. during the year 1900 it
will cause a loss to the coke company
of not less than S4.000,000
The hill sets forth that at the time
the grievances complained of happened
Schconmaler owned SOC shares of the
capital stock of the coke company, Walk
er 1906 shares for himself and 116
shares as guardian of Andrew Carnegie
Wilson and Pontefract 500 shares.
The coke company, it is stated, was
organized TO buy, own and mine coal
and manufacture and market coke man.
ufacturing upward of 100000 tons or
coke year in what is known as the
ConnellSyille Coke region. in Westmore-
land and Fayette counties, Pa. The cap
tal stock Of the company is $10000,000
divided in 100000 shares of the par
value of $50.
The Carnegie Steel Co, Limited
capitalized at $25,000,000 it is stated,
pretends to be a limited partnership or
gained in 1892 and is engaged in Gie
manufacture of pig iron and steel reuir-
ing about 100000 tons of coke annu-
ally.
The Carnegie Steel Company, Ltd.
was the owner of 59,104 shares of the
capital stock Of the coke company ana
Carnegie was likewise holder of 81 ,213
shares, which together constituted more
than majority of the coke company's
capital stock This, it is claimed, en-
abled the Carnegie Steel CO., Limited,
and Carnegie to elect their nominees as
directors of the coke company and nomi-
nate and control their action.