The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-02-14

S25, ,OOO, OO0 and operated all the old works
This new firm was under the immediate
care and supervision of Frick as chair
man, from 1892 to Dec. 5, 1S99 It greatly
enlarged the capacity of its different
works, enlarged their output and pur-
chased other plants, ore mines etc.
Carnegie lived in New York, passed
much of his time abroad remaining at
one time for eighteen consecutive
months. He did not pretend to manage
the current business, although he was
consulted as to important matters.
ENORMOUS PROFITS.
The business from 1892 to 1900 was
enormously profitable, growing by leaps
ana Jumps from year to year. until. In
1883, the firm actually made, on low
priced contracts, in net profits, after
paying all expenses of all kinds, $21, ,00O,-
O00
In November, 1885, Carnegie estimated
the net profits for 1900 at $4,000, 600, and
Frick then estimated them at s42. .OO0. .OoO
Carnegie valued the entire property at
over 6O,OO0, 900 and avowed his ability
In ordinarily prosperous times, to sell
the property on the London market for
a100, 0,O00 or $500, 100000
In May, 1899, Carnegie actually re-
ceived in cash and still keeps s1,7OO,O ,OOO
given him as mere bonus for his nine
W days option to sell his 5S15 per cent
interest In this steel company for s157,-
S5o,00o Fricks 6 per cent on that basis
would be worth SIG, ,23S, 900.
Frlck now alleges, right at the head of
this enormously successful business.
whereby, at least in part, be made for
carnegie these enormous profits and val
ues, that Carnegie suddenly, and with
maievoient intent towards him, on Dec. 4
1873, arbitrarily demanded of him his reg
1gnat1on as chairman. and this without
any reason except to crafty Carnegie's
malice.
Fr1ck, In the interest of harmony, gave
his resignation, and, subsequently,, on the
llth day of January, 1900, after Carnegie
had thus deprived him of his office he
(Carnegfe) demanded of Frick that he
(Frick should sell to the firm his inter-
est in 1t at figure which would amount
to less than one-half Of what this interest
is fairly worth. Frick refused to sell at
that price but offered to sell, and allow
three men to value the interest sold Car
negie refused this, and left Frick. threat
ening him for not yielding to his demand.
CoNFIscATIoN ALLEGED.
Frick alleges that after his resignation,
and at the time of this last interview,
Carnegie was fraudulently and secretly.
without Frick's knowledge or consent, at
tempting to carry out a scheme which, if
successful. would enable Carnegie as
Carnegie hoped, to confiscate Frick's in
tereTs in the firm at probably not much
over 80 per cent of its real value; that is
to say, not over Sc, 0O0, 600 for what on the
basis of Carnegfe's option, was worth
$16 23S, 900. This scheme, Frick says, he
can prove was to reintsate and make op-
erative an unexecuted- and abandoned So
called iron-clad agreement of 1887, which
related solely to Carnegie Bros. & Co.,
limited, and never did include
ited and also to attempt to make
binding on Frick another so-called IRON
clad agreement Of 1892, which Carnegie
never before had executed which Henry
Phfpps had always refused to execute,
and which many other partners had new
er signed This agreement, contemplated
in 1892, Carnegie knew, as Frick now al
leges, was absolutely void in 1899, and yet
Carnegie appeared at a meeting of the
board of managers of the Carnegie Steel
company, limited, held JAN s, 1900, in
Fricks absence, ana presented false and
misleading resolutions, whereby he at
tempted to make operative and reinstate
the so-called iron-clad agreement of 1887
and also directed his co-partners to sign
the so-called agreement of 1892, which
neither he nor many of them had there
tofore executed All this, 1t is alleged,
Carnegie did secretly, and purposely con-
cealed the knowledge thereof from Frick
MR. tricks PRoFFER.
The bill alleges that the new partner
ship Of the Carnegie Steel company linz
tied Is not limited but general part
nership, but Frick was unwilling to take
advantage Of what he believed to be q
limited partnership until he was advised
otherwise after this controversy arose
and he therefore offers (a) to sell his In
terests in the firm at what three business
men will judge them to be fairly worth;
(b) to execute papers making a valid,
binding, limited partnership and to con-
tinue the firm in all respects as 1t was
heretofore to do; (c) to cons
tfnue the firm, even If 1t is general
partnership. and all are individually lia>
BILE, provided he be allowed to participate
In the management, because to leave tho
sole management to Carnegie would re-
suit eventually, as he (Friek) believes,
In financial loss; I'D II Carnegie refuses
all these offers, then he asks the court
to dissolve the partnership and to have a
receiver appointed to sell the property
and pay the debts and distribute the bal
ance