The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1900-02-28
K FIGHTS CARNEGIE
He Brings Sensational Sui: IN
Equity, Alleging Fraud.
Reveals the Amazing Profits Which Are
Made by the Carnegie Steel
Company.


ened suit in equity OF H. c. Frlck against
Andrew Carnegie was filed Tuesday In the
Court OF Common Pleas. Mr.. Frick makes
the charge against Mr. Carnegie OF NAL
evidence, fraud and personal antmosity
toward Frick. The suit Is by H. @. Frick,
plaintiff, against the Carnegie Steel Com
pany, Limited, and the stockholders, the
rule requiring that all, even those In sym.
pathy with Mr.. Frick, shall be Included IN
the suit.
Frlck seeks to restrain Carnegie from
forcing him to sell out his Interest IN the
property except at his own terms.
, Frick declares that the company's profits
for 1899 reached the staggering sum OF
S2l 900 900, after all expenses had been
paid.
=, In November OF last year Carnegie esti-
mated the net profits for 1900 at S40, 900 ,0OO,
and Frick then estimated them at $42, 2,O0O,-
600. .
Frick claimsthe credit for the firms enor.
nous profits. He thinks Carnegie Is now
about to assume the management, and this,
he AYERS, will eventually result In great
financial loss. He declares that he was
malice Oh the part OF Mr.. Carnegie. :
Frick also declares that his interest In
the company Is valued at SIG, ,2SS, 900, but
that Carnegie Is trying to make him take
S6, 200, 600.
Forty partners are named In the bill,
which makes thirty-nine pages OF printed
matter. The main points in 1t are, that
Carnegie valued the entire property at over
$3.50, 900 900, and avowed his ability, In
ordinarily prosperous times. to sell it on
the London market for $500, 900, ,00a.
III. 49, ,,I,: 10 ia oIr
engaged In making the business profitable.
Carnegie lived in New York, passed much
OF his time abroad, at one time, for eighteen
consecutive months. He did not pretend
to manage the current business, although
he was consulted as to important matters.
The business from 1892 to 1000 was enor-
mously profitable, growing in laps and
Jumps from year to year until, IN 1893, the
firm actually made ca low-priced con-
tracts in net profits, after paying all ex-
penses Of all kinds, S2l 900, 900. In Novem-
ber, 1899, Carnegie estimated tue net prof.
its for 1900 at S4o, ,0OO,0OO. and Frlck then
estimated them at s42 ,OOO, 600. In May.
1899, Carnegie actually received In cash,
and still keeps, s1,170,000 given him as q
mere bonus for his ninety days option 10
sell his 5SI6 per cent. interest In this steel
company for S157, ,95O,000. Frick's six per
cent. on that basis, would be worth BIG,
$4,000. =
FrIck now alleges that, right at the
height Of this enormously successful busi-
ness, whereby, at least, in part, he made
for Carnegie these enormous profits and
values, Carnegie suddenly and with NAL
evolent intent toward him, on December 4,
1899, arbitrarily demanded OF him his res
ignation as chairman and this without any
reason except to crafty Carnegie's malice.
Frlck, in the interest oil harmony gave his
resignation and subsequently, on January
II, 1900, after Carnegie had thus deprived
him of Ills office. lie (Carnegie) de-
manded of Frick that he (Frlck) should
sell to the firm his interest in 1t at figure
which would amount to less than one-halt
Of what this interest Is fairly worth. Frtck
refused to sell at that price, but offered to
sell and allow three men to value the in
teresr cold. Carnegie refused this aud left
Frlck, threatening him for not yielding to
his demand.
Frlck now alleges that after his resigna-
tion and ut the time OF this last interview
Carnegie was fraudulently and secretly,
without FrIck's knowledge or consent, at.
tempting to carr out scheme which, IL
successful, would enable Carnegie, rs Car
negie hoped, to ctnfiscate Frlck's interest
In the firm at pr obably not much over
thirty-three per ce It. OF It's real value; that
Is, say not over sc, 700 900 for what, on the
basis OF Carnsgle's opinion, was worth
Sig, 1888, 900. ... -