The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-02-12
CARNEGIE NOT TO BACK DOWN.
Such Step Alone Would Prevent
the Great Battle of Steel Kings.

From the Philadelphia Press.
Pittsburg. Feb. Announcement that
H. C. Frick is about to begin suit against
the Carnegie Steel Company, with An
drew Carnegie as the principal defendant
on the question of the ironclad agreement,
under which the concern has been operat-
ing, was the tople-of the day among the
manufac turing and financial circles OF the
city. fa.a
1t is stated tonight that no doubt re-
mains that the suit will be entered, and
the only thing that can prevent an appeal
to law in the case would be complete
backdoEn on the part of Mr.. Carnegie.
Such action by him is not looked for.
Indications are that some big transactions
are to be aired in court and there may he
some washing of linen.
AS alrsady stated in the Press, the chief
contention Of Mr.. Frick will be that he Of
fered to buy out Mr.. Carnegie at a certain
figure, and that when Mr. Prick stepped
down and out of the concern Mr.. Carnegie
insisted upon appraising Mr.. Tricks inter-
est at an entirely different figure, on the
strength of the agreement.
According to the figures mentioned to-
day Mr.. Frick wants his interest pro-
rated at a valution of $50,0OOOO0 for the
entire concern. This statement comes
from one of Mr.. Frick's counsel.
Mr.. Prick has refused to accept for his
share in the concern the book value, UNI
der the agreement According to the OPP
ton obtained by Mr.. Prick and his asso-
ciates from Mr.. Carnegie some months
ago. the latter was to give up his interest
in return for S50,000,0O0 in cash and $780,
100000 i'm gold bonds on the concern The
pla ! was to increase the capitalization of
the Carnegie interests to $350, 100000, to sell
the extra $500, 600, 900 of stock and float
consolidated company of every corpora
ton now under the control of Mr.. Car
negie and his associates.
The option expired without having been
taken up, although $l,000,000 in cash has
been paid for it by Mr.. Prick, Judge
Moore of the Tin Plate Trust, and others.
Upon the expiration of the option Mr..
Carnegi declared publicly in an interview
that he would not give another option al
the same figure and that he regarded his
holdings as worth more.
Friction between MIR. Frick and Mr..
Carnegie, which has been smoldering dur
ing the period of negotiation, broke out
fresh when matters took this turn and
eliminated in Mr. Tricks resignation at
a meeting of the board of managers of
1t is stated that Mr.. Tricks contention
win be on the legal side of the case that
the iron-clad agreement is not legal. As
to the position of the other side, it is said
that tho point will be raised that Mr..
Prick signed the agreement in question
for many consecutive years and tina.
the document was drawn by D. T. Wat
son of Pittsburg, enc of Mr.. Tricks coun-
sci in the present matter.
The ironclad> agreement was made in
order to keep retiring partners from sell
ing their stock TO outsiders who were not
in harmony with the partners, and also
to perpetuate the company. Many old part
ners, who succumbed in years previous TO
the dictates of the Carnegie control, quiet
ly acquiesced in the Endorsement of the
agreement, with deep regrets at the loss
of rich profits. Mr. Frick alone stands as
the first TO dispute the method.
1t is said that upon Mr.. Tricks retire
ment, Mr., Carnegie informed him that a
certain price, based on the book values,
and reputed to be six times the par value
of the stock, would be paid for his hold
ings. MIR. Frick now holds 6 per cent. of
the capital stock Of $25,0 coo.
At the reorganization of Carnegie Bros.
& Co, Limited. in 1892, Mr.. Frick had II
per cent. In the odd company, or $3.50. 900,
and secured the same percentage. or ST.
10000 In the new one, but IL Is supposed
that he relinquished per cent when re-
tired from the presidency upon John q. A.