Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-02-14
ENORMOUS PROFITS
Henry Clay Frick Institutes Suit
Against Andrew Carnegie.
He Discio.es somo or tho Methods By
Which tho mi,,,onair. ph,lan-
'hropi.t AccumuIntcs nli,,ion.-
Some Very SERIOUS Charge. rre-
fcrrcd,
(By Telegraph 10 virglnian-PIlot,

Pittsburg, Pa, Feb. 13-Henry Clay
Frick filed bill in equity to-day in
the Court OF Common Pleas, No. 1, of
Allegheny county. against Andrew Car
negie and the Carnegie Steel Company,
Limited. 1t prays first for n decree that
the pretended transfer of his interests
IN the company was, and is, null and
Void, and that he is still the owner of
all such interests, and is entitled in
every lawful way to represent and net
LOT the same, and to cancel upon the
ilrhis BOOKS any such transfer made or
pretended" and all entries Con such
books of insufficient, unfair and i'm
proper valuations of the Carnegie Steel
coahpany, Limited, assets and of plain
III 6 interests therein, requiring the
looks TO show real values. The petit
lion prays for an injunction restrain-
iils the defendants from any inter-
ference with his interest in the COM
paly and from excluding him from par
ticlpation in its care and management.
In case the defendants shall refuse
inc OFFERS made by the plaintiff, and
Shaii refuse to continue the said bust
ness ana allow him to participate In the
management and control thereof, and
OIL the properties of the Carnegie Steel
company, Limited, in conjunction with
themselves, and shall insist upon the
exclusive management by themselves of
salu business and assets, and shall con-
tinue to exclude the plaintiff from his
interest in the business and assets of
the said firm, it is prayed that the court
VIII thereupon allow the plaintiff to de-
clare the said firm of the Carnegie Steel
Company. Limited, dissolved, and APP
point receiver to take charge of all
the business and assets of said firm,
permitting said receiver to fulfill until
performed contracts, and to do what
ever snail be necessary in and about
the proper liquidation of it's affairs, and
that, after the conversion Of the entire
assets of the company into money and
the payment of the debts of the said
company, the courts will then distrib-
ute the balance thereof among the part
ners in proportion to their interests.
That an account be taken between
Carnegie and the plaintiff, whereby
Carnegie shall be charged with all the
losses, expenses and damage he has
caused by his Illegal and fraudulent
conduct, and that If Carnegie persist
in his said fraudulent scheme and re-
fuses the offers hereinbefore made, and
thus causes the actual dissolution of
the firm. all losses incurred by the
plaintiff by reason of the said dissolu-
ton and forced winding up Of the firm
shall be charged against him. and that
he shall be decreed to make good, and
pay to the plaintiff the difference be-
tween what his interest was fairly
worth on or about February 1st, 1900,
and the amount he shall receive
through the decree of this court In final
liquidation and settlement of the said
firm
PROFITABLE BUSINESS.
The bill in equity is very lengthy
After detailing the growth of the great
plant. Mr.. Prick says in the Carnegie
Steel Company Limitcd) Carnegie
owns 5Sh per cent. interest and Frick
per cent. The business was enor-
mously profitable, and in 1899 the firm
actually made on low-priced contracts
in net profits, after paying all expenses
Of all kinds. S2lo0O,Ooo.
In November, 1892 Carnegie estimat-
ed the net profits for 1900 at $4,000 600,
and Frick then estimated them at S42,-
50o,0 00 Carnegie estimated the entire
property at over Se50,000000, and avow-
ed his ability, in ordinarily prosperous
times, to sell the property on the Lon
don M let for $500. 900 OOO
In May, 1899. Carnegie actually re-
ceived in cash, and still keeps, 81. ITO 600,
ty days option to sell his 5Sla per cent
interest in this steel company for $751;
$50. OO0
Tricks per cent on that basis would
be worth s16,23S0OO.
CARNEGIES UNJUST DEMAND.
Fricll now alleges, right at the height
of this enormously successful business,
whereby, at least, in part, he made for
Carnegie these enormous profits and
values. that Carnegie suddenly. and
with malevolent intent towards him on
December 4th. $780, arbitrarily demand
ed of him his resignation as chairman
and thtC V>itbnI1f tO
crafty Carnegie's malice.
Prick, in the interest of harmony,
gave his resignation and subsequently,
on the 18th day of January, 1900 after
Carnegie had thus deprived him of his
Office. he (Carnegie) demanded of Frck
that he (Frick) should sell to the firm
his interests in it at a figure which
would amount to less than one-half of
what this interest is fairly worth
Fricl refused to sell at that price, but
offered to sell and allow three men to
value the interest sold. Carnegie re-
fused this and left Frick, threatening
him for not yielding to his demand.
FRAUD CHARGED.
Friclz alleges that at this time Car
negie was fraudulently and secretly,
without tricks knowledge or consent,
attempting to carry out scheme
which. If successful, would enable Car
negie to confiscate Tricks interest in
the firm at probably not much over 80
per cent. of its real value: that is, say
not over $4,000, 600 for what. on the basis
of Carnegie's option. was worth sl6.-
5000. This scheme, Frick says, he
can prove was to revive and to rein
state and make operative an unexe-
cuted and abandoned so-called ironclad
agreement of 1887 which related solely
to the original Carnegie Bros. Sc Co.
Limited. and never did include the new
firm of the Carnegie Steel Company,
Limited; and also to attempt to make
binding on Frick another so-calIed
ironclad agreement of 1892, which Car
nege never before had executed, which
Henry Phipps had always refused to