The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-03-23
THE CAPITAL $3.50, 1000, 900
The Famous "Ironclad Agreement" is
Wiped Out.
AUTHORIZED STATEMENT BY COMPANY
All Litigation Dropped Through the Agree.
ment Reached at the Atlantic City Confer
ence. Schwab President of the New
Combination. List Of Properties.
(By The Associated Press.)

Pittsburg, Pa, March 22.-The Carne-
gle Steel Company, limited, becomes a
stock company with capital variously
estimated at from 5000 GOO, 900 to $780,
900. 900, the famous iron-clad agree
ment'' is wiped out, all litigation be-
tween the partners in the Carnegie Com
pany is dropped and H. c. Prick, the
former President of the company virtually
secures all he has contended for. These
facts are embodied in an authorized
statement issued tonight by the Carnegie
Steel Company, limited The Atlantic
City Conference resulted in an agree
ment signed by all the parties interested
except Mr.. Frick and John Walker, the
latter the principal plaintiff in the suit
against the Fl. C. Frick Coke Company
The document reached Pittsburg today,
and afte comparatively brief conference
between the two gentlemen was signed
by both pr them
To President G. NJ. Schwab is given the
credit for effecting this amicable arrange
ment He presented number of propo-
stions, all rejected, until he advocated
the organization of stock company. the
capital to be based upon the value OF the
company's properties and its earning ca
pacity and the partners in the limited
corporation to receive stock proportion
ate to their present holdings. AS the cap
ital of the Carnegie Steel Company
limited, is $25 000,0 900, under the proposed
plan of re organization. each partner will
hold either eight or ten times as much
stock in the new corporation. AS Mr.
Frick holds per cent. OF the capital
stock in the Carnegie Steel Company he
will receive in stock of the new concern
$4,000, coo if it is capitalized at 5000, OOO,-
600; S15, 900, 900 if at $3.50, 000,0 00 His
contention in his suit was that his stock
was worth at least $15 600 900, and ne
sued to recover the difference between
that and the amount offered him when
he was invited, under the ron-clad'
provisions, to resign.
Mr. Frick said tonight that the ar
rangement was satisfactory. Both he
and President Schwab, who will be at the
head Of the big combination. said under
the present arrangement no on-clad
agreement is possible.
On the basis of $3.50 coo, 900 capitaliza-
ton of the new company Mr. Carnegie s
holdings 5S1h per cent. will be worth
SAG. 600. 600; Henry Phipps, Jr., interests,
IL per Ctul., pEt yooV,VoV, uAu h ~ - I'm ~
per cent, will stand him $4,000, 900.
George Lauder owns four per cent. and
President G. NJ. Schwab, 3 per cent.
The Carnegie Steel Company, limited,
and the H. C. Prick Coke Company, au-
thorize the following statement:
THE partners of the Carnegie Steel
Company, limited and the stockholders
of the H. c. Frick Coke Company have
agreed upon a plan of re- organization.
vesting the ownership and control of said
companies in one company to be incor-
porated under the laws of New Jersey.
THE effect of the proposed re-organi-
cation will be to terminate the equity
proceedings instituted against the Car
negie Steel Company limited. and the Fl.
c. Prick Coke Company.
THE articles of association of the Car
negie Steel Company limited, as limit
ed partnership organization expire by
Limitation April list, 1901, but the change
contemplated will be effected before that