Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1900-02-17
Prick vs. CARNEGIE.
The Legal Contest Opened Between
the Iron Kings.
CARNEGIE CHARGED WITH FRAUD

King, and Asks That Justice ne
Done Him or the Company Dissolved
Pittsburg, Feb. 14.-Henry CLAW
Prick filed a bill in equity Yesterday
In the court of common pleas No.
or Allegheny county against Andrew
Carnegie and the Carnegie Steel COM
psny, limited, praying first for n decree
that the pretended transfer OF his In
terests In the company was and is null
and void, and that he 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 defendants from any interference
with his interest in the said company
and from excluding him from particle
patton In the care and management OF
The assets and business.
Third, decree ordering the defend
ants to cancel upon the books Of the
urn any assignment or transfer here
tofore made OF pretended to be made
to said association of the planting
interest In the firm.
Fourth, decree ordering the de-
PENDANTS to cancel and erase all entries
upon the books of the firm OF INSULT
Gent, unfair and improper valuations
or It's assets and Of the plaintiffs in
terest therein, and to cause the said
books so to be kept as to fairly and
FULLY show the real value of the COM
pany.
Fifth, In case the defendants shall
refuse the offers made by the plaintiff.
and shall refuse TO continue the BUSH
ness and allow him to participate in
the management and control, in con-
junction with themselves, and shall
insist upon the exclusive management
py themselves, and shall continue TO
exclude the plaintiff from his interest
In the business, that the court will
tnereupon allow the plaintiff to declare
the firm dissolved, and appoint a re-
ceiver to take charge nf all the bust
ness and assets of the firm, permitting
said receiver to fulfill unperformed
contracts and to do whatever shall be
necessary in and about the proper
liquidation OF its affairs, and that, af-
ter the conversion OF the entire assets
or the company into money and the
payment OF the debts OF the company.
the court will then distribute the bal
ance thereof among the partners In
proportion to their interests.
Sixth, that an account be taken be-
tween Carnegie and the plaintiff where
by Carnegie shall be charged with all
the losses, expenses and damage he has
caused by his illegal and fraudulent
conduct, and that IL Carnegie persists
In his fraudulent scheme and refuses
the offers hereinbefors made, and thus
causes the actual dissolution of the
hrm, all losses incurred by the plain
thu by reason of the forced winding I'D
or 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
| was 1airiy worth on or about Feb. ].
| 1900, and the amount he shall receive
through the decree of this court In
! final liquidation and settlement of the
| firm.
In 1892 there were two limited part
nerships: O Called Carnegie Bros.
& Co, limited, with a capital of So
100000, which made steel rails, and
owned the Edgar Thomson steel rail
mill In Braddock township. (2) Call
ed Carnegie. Phipps & Co., limited.
with capital OF $1,000 900, which made
al kinds or steel plates, structural
material, Iron forgings, made the ma
terial for and built bridges, made ar
NOR plates, and made material for the
| same.
Carnegie owned over so per cent of
each of the old firms, and he, with
Frick, Phipps and others, owning in
terests In each, formed, in 1892, what
constituted a new partnership, called
the Carnegie Steel company, limited.
In this Carnegie retained over so per
cent, and now has 5Sh per cent, while
Frick has per cent. Both old firms
were merged into the new. which had
a capital of $4,000, 900, and operated
all the old works. This new firm was
under the immediate care and super
vision OF Prick. as chairman, from
1892 to Dec. 5. 1899. 1t finally enlarged
the capital of its different works, en-
larged their output, and purchased
other plants, ore mines, etc.
The business from 1892 to 1900 was
enormously profitable. In 1899 the
firm actually made in net profits s21.-
100000. In November, 1899. Carnegie
estimated the net profits for 1900 at
$40 100000, and Frick then estimated
them at $42 500, 900.
Carnegie valued the entire property
at over $250,000,000. and avowed his
ability. In ordinarily prosperous times,
TO sell the property on the London
market for $500, 000, 900.
In May, 1889, Carnegie actually re-
ceived in cash. and still keeps, S1,170.-
900, given him as a mere bonus for his
80 days option to sell his 58h per cent
interest in this steel company for $751;
$4,000. Tricks 6 per cent, on that
basis, would be worth sic, 23S 900.
Frick declares further that at the
height OF this enormously successful
business Carnegie demanded his resig-
nation, which he gave in the interest
or harmony. Later Carnegie demand
ed that he (Frickl sell his interest at
less than half its value, which he re-
fused to do. Carnegie now, Frick de-
clares, is endeavoring fraudulently to
confiscate Tricks interest for $6,O0O,-
600, not much over 33 per cent Of its
real value. Carnegie produces, says
Prick, an alleged ironclad agreement
which has no connection with the
present company.