New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-14
RICK-CARNEGIE SUIT.
PROCEEDINGS BEGUN IN PITTSBURG
COURT OF COMMON PLEAS


IN equity to-day in the Court Of Common Pleas
NO l. or Allegheny County, against Andrew Car
hesie and the Carnegie Steel Company, Limited
praying first for decree that the pretended trans
Ter OF his interests in the company was and Is null
and void and that is still the owner Of all such
interest and is entitled in every lawful way to
represent and act for the same.
second, for an injunction restraining the defend
ants from interference with his interest in the
said company and from excluding from participa-
ton In the and management OF the assets and
business.
Third. decree ordering the defendants to cancel
upon the books OF the firm any assignment or trans
fer heretofore made pretended to be made to
said association of the plaintiffs interest in the
firm.
Fourth-A decree ordering the defendants to
cancel and erase all entries upon the books of the
nrm OF the Carnegie Steel Company, Limited, of
insufficient, unfair and improper valuation OF Its
assets and OF the plaintiffs interest therein, and
cause the said books to be kept TO fairly and
fully show the real value OF the Carnegie stee!
Company, Limited and the plaintiffs interest
therein.
Fffth-In the defendants shall refuse the
offers made by the plaintiff and shall refuse TO
continue the said business and allow him to par
tcipate in the management and control thereof
and OF the properties Of the Carnegie Steel Com
pany, Limited. in conjunction with themselves, and
shall insist upon the exclusive management by
themselves Of said business and assests. and shall
continue to exclude the plaintiff from his interest
In the business and assets OF the said firm, that
the Court will thereupon allow the plaintiff TO de-
clare the said firm OF the Carnegie Steel Company,
Limited. dissolved and appoint a receiver TO take
charge of all the business and assets Of the said
firm, permitting said receiver to fulfil unperformed
contracts and to do whatever shall be necessary
in and about the proper liquidation of its 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 Court will then
distribute the balance thereof among the partners
in proportion to their interests.
Sixth-That account be taken between Car
negie and the plaintiff, whereby Carnegie shall be
charged with all the losses, expenses and damage
he has caused by his Illegal and fraudulent
Duct and that If Carnegie persists In his said
fraudulent scheme and refuses the offers herein
before made. and thus causes the actual dissolu-
ton OF the firm, all losses incurred by the plaintiff
by of the said dissolution and forced wind
ing 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 between what his
interest fairly worth or about February l,
1900, and the amount he shall receive through the
decree of this III final liquidation and settle
ment of the said firm
ALLEGATIONS OF BILL. IN EQUITY.
The bill in equity is long, and as summarized by
Willis McCook. counsel for Mr.. Frck, is fol-
lows
In In 1892 there were two limited partnerships:
with capital Of $4,000 which made steel rails
and only the Edgar Thomson steel rail mill
sseond1csIled cs1asgs Rhipps s Co., Limited
steel plates, structural material, iron forgings,
made the material for and . built bridges. made
This latter m me owned hs RPep srd lower mills
Homestead, the keystone Bridge works in Pitts
burg the arIn0r plate NIL near Homestead the
Carnegie owned over so per cent of each of the
owning interests in each formed in is92 what con-
company n this Carnegie retaned
ck has per- es snd Both hos d M
into the new. which had capital of S25od0oOo and
der the immediate and supervision of Frick, as
chairman from 1892 to December 5, 1889. 1t greatly
arged their output and purchased other plants ore
Mr.. Carnegie lived in New-York and passed much
OF his time abroad, remaining there at one time for
to manage the current business. although he was
9 8 % s. Wss
ing by leaps and Jumps FROM year o TO 5reed Go
tracts in net profits after paying all expenses of all
In November. 1899 Mr.. Carnegie estimated the
net profits for 1900 at 100000, and Frick then
the entire properly at over 600 and avowed
the property the London market for f1ooooO,OOo
and M st Keeps sI76oOo given him as a mere
bonus for his ninety days option to sell his 3s3E per
Tricks 8 per cent. on that basis, would be worth
Frick 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 toward him. December 4. 1899
arbitrarily demanded of him his resignation s
chairman and this without any reason except TO
crafty Carnegie's malice
Prick, in the interest of harmony gave his resig-
nation, and subsequently. and on January H. 1900
after Carnegie had thus deprived him of his office.
he (Cernegie) demanded of Prick that he (Frick)
should sell TO the firm his interest in 1t at figure
which would amount to less than one-half of what
that price, but offered to sell allow three men
to value the interest sold Carnegie refused this
and left Frick, threatening him for yielding to
Prick now alleges that after his resignation. and
trauduently and secretly, without tricks knowl-
edge or consent, attempting to carry out a scheme
Carnegie hoped, to conhscate Tricks interest in
its real value,that is to say, not over SeO0oo00
T95 SO PASS scheme of Fc .a 9P he
prove prove was to revive and reinsae and make oper
ead of he seeT 10
ns The Gee and did
so-called ronclad agreement Of 1892 which car
Phipps had always refused to execute and which
many other partners had neyer signed This
Frick now alleges. absolutely void in 1899 and
Managers Of the Carnegie Steel Company my Limited
held on January 8. 1900, in Tricks absence and
by he attempted to make operative and reinstate
the so-called ironcad agreement of 1887 and also
ment of 1882. which neither he nor any of them
6ad heretofore executed; All this, 1t is alleged
Carnegie did secretly, and purposely concealed the
knowledge thereof from Frfck TIC
Carnegie enabled to control his partners be-
cause most Of them stiIl owed the firm money for
snelr interests and Carnegie dominating the firm
able to withstand his demands. Carnegie induced
some OF ms ocopastners to sign the so-caled agree