Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1900-03-15
MORE DISCLOSURES MADE
interesting History of Great Steel
Concern Exposed Enormous For
tune Built Up by Prick in Twenty
Iears-Latter Charged With Being
of lmperious Temper and Unfair,

i"tlci - uoIuIHSS IN the company was
filed in the common pleas court yester-
day. The answers filed are for the
Carnegie Steel company, Limited. and
80 individual defendants. The docu-
ment makes nearly 10000 words
meeting every ayerment of the plain
tiff in fullest detail 1t is denied that
Carnegie and others in 1892 executed
articles of association for the Carnegie
Steel company, Limited, but that they
did subscribe TO the amendment of the
original certificate under which Car
negie Bros. & Company, Limited, had
been organized as limited partner
ship association. Said amendment
was not for the purpose of creating 4
new partnership but for modifying the
terms of the original certificate. II.
{. Frick was one appointed to carry
out the plan, Frick was the principal
actor in that move. The association
purchased the property of Carnegie.
Phipps & Company, Limited for $40 900
June 30, 1892. The same day Carnegie
Bros. & Company paid to its members
a dividend of 200 per cent or $40, 900
600, representing the earnings previ-
ously invested in the company's prop
erty. The answer sets forth the his
tory of Tricks membership in the
association. To begin with his inter-
est was acquired in the same manner
n ~ 10
not required to pay for the same, pro-
vision being made out of the future
profits, Tricks interest was acquired
in 1887, under the terms of the Iron
clad agreement" 1t amounted to
100000 OF capital stock. Subsequent
ly he acquired much greater holdings,
and afterward released some, at a
period of business depression. rhe
bill alleges Frick paid only 1929 900 for
his interests in the Carnegie Steel
company and that with credits from
his stock and earnings the amount
paid was only $500 600 all told for in
terest worth $5,000,OO0.
AS to the value of Tricks services
which he claims largely added to the
success of the association, Carnegie
says that since 1895 Tricks functions
have been merely advisory. 1t is
charged that Prick is a man of i'm
perious temper and attempted to make
personal matter of business differen-
ces, giving away to violent outbursts
Of passion. The defendants state that
he demanded absolute power, ana
without il was not satisfied. After
January II, 1895 the answer
recites, when he ceased TO be the chair
man of the association and was merely
chairman of the boara of managers.
with no power except to preside at
board meetings, the plaintiff was and
continued to be dissatisfied Ii is de-
Inied that Carnegie was actuated by
maleyOlent motives in demanding the
resignation of Prick as chairman and t
is stated the resignation vas demanded
to preserve harmony Touching upon
the profits OF the company and the at
tempt TO organize stock company,
the answer states that Carnegie while
at luncheon with the plaintiff and
Iothers connected with the company. by
way OF jest. undertook to make estl-
mates of the profits Of the company for
1900 and the defendant, Carnegie. did
make the estimate substantially rs
ayerred in the plaintiffs bill, such esti-
mate however being mere guess work
1t is admitted that the profits OF the
company for the year 1899 were sub
stantially as ayerred by the plaintiff.
but this does not by any means midi
ton as dividends. Il is denied that
the association has assets which il
could transfer worth $3.50 100000. Ii Is
asserted that Dec II. 1899 the books
showed the net value OF the assets TO
be $50, 10i06 Frick, It is elaine 1
has upheld and enforced the so-called
l"iron-clad agreement" al all times
! II is ayerred that $4,000 900 is the
amount due Frick The proposition
made by t'rick TO arbitrate the value ~
I his interests is rejected because the de-
PENDANTS propose at all times 10 main
tain the integrity Of the contract uader
which the relations OF the association
and Its various members have been de-
/ fined since 1867, They do not regard
Tricks ofier as being made In good
faith but for the purpose Of eyading
his agreement to obtain a price which
The is not entitled TO. Il is denied that
I the association ia under the exclusive
control OF Carnegie. but it is averrel
! he is fully competent - properly man.
age and carry on the business The
defendants ask that the bill be dIs.
missed with costs placed upon tht
plaintiff
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