The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-02-14
STEEL KINGS WAR
MilliOnaireS viii Battle For the
Right to- Control
The Great Carnegie Iron and
Steel Industries.
AN ARRAY OF TALENT
Seldom EquaIled From Point of
Legal Ability.
PhiIanthrOpic Scotchman Ac-
cused of Crooked Practices.

Pittsburg, Feb. 14.-The announce
ment that the long threatened clash
of the steel kings has been finally pre-
cipitated by H. c. Frick filing the
widely heralded suit against Andrew
Carnegie and the Carnegie Steel COM
pany, praying for an equitable account
ing or the eX-chairman's stcckholdings
in the giant steel concern, created a
sensation in financial and manufactur-
| ing circles here and was the principal
! topic throughout the city. The suit is
regarded as the most important ever
filed in connection with the steel buSi-
ness and it is said more money is at
stake than in any legal proceedings
ever brought in this country in which
all the parties were simply citizens.
Steel manufacturers view the trouble
as bitter personal struggle for su-
premacy and are watching each move
with intense interest. The legal tai
ent caIled into action by the suit is an
array of the giants of the profession in
tnls state with probable luminaries of
national repute yet to be included.
On Mr. Tricks side are John G. John
! son of Philadelphia, who stands at the
head of the equity lawyers of the city
and perhaps of the state and who has
been engaged in some of the greatest
16Sdl DaIlleS OIL the country. DaNlQ L.
| Watson of Pittsburg, an attorney
| scarcely less widely known and whose
prowess in the civil courts Of the state
has been proved time and again in
! cases where vast fortunes were at
| stake and finally Willis F. McCOOk. for
years the personal counselor and inti-
mate friend of Mr.. Frick, whose abil-
| ity in handling the affairs of big cor
porations has put him in the front rank
at the Allegheny county bar
! STRANGELY enough Attorney Watson iS
the man who originally drew up the
! now famous "ironclad' agreement for
Andrew Carnegie and which he has
now been retained to find a flaw in and
| have declared invalid. 1t is said that
Mr.. Watson spent the best part of
! three months in drafting this instru-
ment and when finished declared that
| it was the strongest paper of the kind
he had ever formulated.
AS yet little has come to light of
! the plans made by Andrew Carnegie to
! defend his company's interests al
| though it is almost certain that Dalzell
| Scott and Gordon have been at work
! for days in the Carnegie defense. Con-
! gressman John Dalzell, the senior mem
| Der of this law firm, is not in Pitts
/ burg, and SO far has attended none of
| the conferences which are reported to
/ have taken place with Mr. Carnegie's
| adherentS and representatives in the
/ steel company, but he will likely take
a hand before long. Other prominent
York are mentioned as having been re-
1 tanned by Mr.. Carnegie, but just who
will really be opposed to the legal array
on Mr.. Frick'S side cannot certainly be
ascertained until a day or two has
/ passed and an answer is made to the
! bill.
Attorney McCook said today that he
confidently expected the suit to come
to trial before midsummer and probably
much earlier
TRICKS BILL IN EQUITY.
Mr.. F'ricks bill in equity is quite
lengthy and as summarized by Willis
McCock, counsel for Mr.. Frick, is as
In 1892 there were two limited part
nerShips:
L. Called Carnegie Brothers & Co,
limited, with a capital of $4,000, 0GO,
which made steel rails and owned only
the Edgar Thompson steel rail mill in
Braddock township; and
2. Called Carnegie, Phipps & Co., linn
tied, with a capital of $1,000 600, which
made all kinds of steel plates, struc-
tural material, iron forgings, made the
material for and built bridges, made
armor plates and made material for
the same.
This latter firm owned the upper and
lower mills in Pittsburg, the extensive
Homestead mills at Homestead, the
Keystone bridge works in PittSburg, the
armor plate mill near Homestead, the
Hartman steel works in Beaver county,
and other properties.
Carnegie owned over so per cent. of
each Of the old firms, and he with
Frick, Phipps and others owning in
terests in each. formed in 1892 what
constituted a new partnership, called
the Carnegie Steel Company limited.
In this, Carnegie retained over so per
cent. and now has 5S72 per cent, while
Frick has six per cent. Both old firms
were merged into the new, which had a
capital of S25, 900 600 and operated all
~, &c E,-x,,
der the immediate care and supervision
of Frick, as chairman, from 1892 to De-
cember s. 1899. It greatly enlarged the
capacity of it's different works, en-
larged their output and purchased other
plants, ore mines. etc.
Carnegie lived in New York, passed
much of his time abroad, remaining, al
one time, for eighteen consecutive
months. He did not pretend to man
age the current business. although he
was consulted as to important matters.
The business, from 1892 to 1900, was
enormously profitable, growing by leaps
and jumps from year to year, until, in
1S99 the firm actually made on low
priced contracts in net profits after
paying all expenses of all kinds, S21,-
Oo0, 600 In November, 1899 Carnegie es-
timated the net profits for 1900 at $40
900 000 and Frick then estimated them
at $42, ,000, ,O00
Carnegie valued the entire property
at over $3.50 100000, and avowed his abfl-
ity in ordinarily prosperous times. TO
sell the property on the London market
for one hundred million pounds ster-
ling. or $500. 100000
In May, 1899. Carnegie actually received
in cash, and still keeps, 81, 10000. given
hsrn IS P mere bonus for his ninety
days option to sell his 5815 per cent. in
terest in the steel company for $751;
$50 600.
Frick's six per cent. on that basis.
would be worth SIC, ,23S, COO.
Frick now alleges, right at the head