The times. [volume] (Washington [D.C.]) 1897-1901, 1900-03-23
THE REORGANIZATION PLAN.
The Carnegie and FricL Interests 20
He Consolidated

| PITTSBURG. March 22.-The differences
between Andrew Carnegie and Ii. c. Frick
have been adjusted. the suits brought by
Prick and the minority stockholders Of the
| II c. Prick Coke Company will be with
drawn. and the Carnegie Steel Company
VIII be reorganized under the laws OF
Pennsylvania and New Jersey. This was
the result announced today OF the efforts
| made by President c. NJ Schwab to end
| the litigation between the two former
friends.
An authorized statement was issued this
afternoon which said
The partners of the Carnegie Steel
Company. Limited, and the stockholders
OF the II. c. Frick Coke Company have
agreed upon plan OF reorganization. vest
ing the ownership and control OF said COM
panles In one company, to be Incorporated
under the laws OF New Jersey The effect
OF the proposed reorganization will be to
terminate the equity proceedings instt-
tuted against the Carnegie Steel Company.
limited, and the H. c. Frick Coke Com
pany.
The articles OF association Of the Car
negie steel Company, Limited, as a lin
tied partnership organization expire BY
limitation April !, 1901. but the change
| contemplated will be effected before that
date, as the future form Of the organfza-
ton has been under consideration for lone
| time and the plan is now about matured
The objection to the corporate crganiza-
/ tion has been overcome, way having been
found by which present deserving employees
can be interested and received into the
company from time to time on exactly the
same terms as others have been admitted
in the past.
"All the various interests, including the
II. c. Frick Coke Company, will remain as
now under Pennsylvania charters. As no
charter can be obtained under the laws of
Pennsylvania under which all the various
departments and interests of the Carnegie
companies can be consolidated, it viii be
necessary TO obtain a charter under the
laws OF New Jersey. which will enable the
control Of interests concerned wherever sit
uated in any State or Territory of the
Union
The stock and bonds of the new cor
poration, instead of being offered to the
public. as once contemplated. are taken BY
the present owners themselves. The basis
of the corporation proposed last year has
been agreed to by all the parties and will
be adopted, rendering new negotiations IN
necessary, but this is matter OF no public
concern since no responsibilities to the
public whatever are incurred. 1t concerns
the owners alone.
The new company absorbs the stock of
the Frick Coke Company. and thus all of
the coke comDanys stockholders become
stockholders of the new concern, including
Mr.. Frick. whose interest in the steel com
pany will be thus protected. which is salts
factory to all parties the controlling part
ners expressing no desire to gain pecuni
arily by their recent action.
Mr.. Carnegie has given President
Charles NJ. Sehwab his proxy to act as re
qured. and Mr.. Schwab will continue as
the executive head Of the new company"
The properties to be included in the re-
organization of the Carnegie Steel Com
pany. Limited. and allied interests include
all the iron, steel coke. and gas plants of
the several concerns. mines, railroads and
steamship lines. Local steel men say that
this settlement leaves honors even between
Carnegie and Frick.
The new company will be capitalized at
$3.50, coo 600 and Mr. Prick will receive S15,-
600 coo worth Of stock. as representing his
percentage of holdings in the Carnegie
Steel and H. C. Friek Coke companies.