The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-02-27
WANT TO ANNUL CONTRACT.
AN ACTION REMOTELY CONNECTED
WITH THE CARNEGIE AFFAIR.

Certain Stockholders of the II. G.
Frici< Company Seek to AnnuI the
Contract by which Coke Is Sold to-
the Carnegie Steel Company, Linz
ited-The BnI Filed Yesterday im
the Common Pleas Court at PhiIa-
dolphin.
Pittsburg. Feb 26.-Johu Walker. John
Walker. guardian of Andrew Carnegie
Wilson. s. l.. SchoonmalSer and John Pom
tefracI on behalf of themselves and such
other stockholders of the II. C. Frick Com-
pany as may choose to join in
the suit as plaintiffs, filed the
much talked of bill in equity td
annul the coke contract held with ths
coke company by the Carnegie Steel Com-
pany Limited, in Common Pleas Cours
No, late this afternoon
This action Is remotely connected with
the trouble now existing between Fl. c.
Prick former chairman of the Carnegie
Steel Company. Limited, and Andrew Car-
uegie, and was precipitated by the recent
filing of Mr.. Frick's bill to secure an ac-
counting of the affairs of the Carnegle
Steel Company, Limited.
The bin names as defendants the III. c.
Frick Coke Company a corporationi
Thomas Lynch. III G.. Friclk, George Lauder
ID. NJ. Clemenson, Andrew M. Morelands
James Gayley and Thomas Morrison. cons
posing the board OF directors of said cor-
poration, and the Carnegie Steel Company
Limited.
The plaintiffs seek TO restrain the deA
PENDANTS by injunction from selling, ship-
ping or delivering any coke 20 the Carne-
gle Steel Company, limited, under con-
tract dated Jan. ]. 1899, at a price of $1.35
a ton; the contract TO run for a period OF
five years, and from settling with the steeh
company for coke already delivered under
the contract
1t is also asked that the court annul the
contract and order an accounting. The
plaintiffs allege fraud In the obtaining of
the said contract to accuse a majority OF
the board of directors OF the coke CONF
pany of working solely for the interest OF
the Carnegie Steel Company, Limited. with
the purpose of cheating and 1efrauding
all stockholders of the coke company not
members Of the steel company. 1t is also
claimed that IL the contract is carried
out, the Frck Coke Company viii have
TO refund to the steel company 1886 O00 on
account OF coke sold to said steel COM
pany during the year 1890, and during the
year 1900 it will cause loss to the coke
company of not less than $,00O,000.
The bill sets forth that at the time the
grievances complained of happened,
Schoonmaker owned 556 shares of the
capital stock of the coke company, Walk
err 1905 shares for himself and 116 shares
as guardian of Andrew Carnegie Wilson
and Pontefract $50 shares.
The coke company, II ia stated, was
organized to buy, own and mine coal,
manufacture and market coke manufae-
turing upward of 100000 tons of coke
year in what Is known as the Connels-
Vile Coke region. in Westmoreland and
Fayette counties, Pennsylvania. The cap
ital stock Of the company is $l0000000 di-
vded in 10000 shares of the par value
of $50
The Carnegie Steel Company, Limited,
capitalized at $25, 100000 it is stated, pre-
tends 10 be a limited partnership organized
in 1892 and Is engaged in the manufac-
ture of pig iron and steel. requiring about
2500,0O0 tons of coke annually. The Car
negie Steel Company, Limited. was the
owner of 50, 10i shares of the capital stoclc
of the coke company and Carnegie was
likewise holder of 81 ,213 shares. which, to-
gether, constituted more than majority
of the coke company's capital stock
This. It is claimed enabled the Carnegis
Steel Company, Limited, and Carnegie To
elect their nominees as directors of the
coke company and dominate and control
their action.