New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-13
CARNEGIE'S DENIAL.
NO GROUND FOR TRICKS SUIT AGAINST
STEEL COMPANY.
ALLEC ATOMS OF FRAUD DECLARED BASE
LEss-ToTAI. ASSETS OF SIS 900 OOO-How
PLAINTIFF GOT s6c0OeOO FOR
$4,000 INVESTED.

PLAINTIFF GOT s6OOO00O FOR
$4,000 INVESTED.
Pittsburg. March 12-Late this afternoon the
answer OF the Carnegie Steel Company. Limited.
defendant in the equity suit of II. c. Frick to
determine the value OF his holdings in said COM
panv was filed in Common Pleas Court No l.
The answers filed are for the Carnegie Steel
Company Limited. and these thirty individual
defendants: Andrew Carnegie c. NJ Schwab.
Thomas Morrison James Gayley, w. W. Black
burn, J. Ogden Hoffman James Scott, w f.
Corey. L. T. Brown, II. J. Lindsay. II. f. Tener.
5r. ". B. Dickson. John Mcleod. A. r. Hunt.
p. T Berg L. c. Phipps. W. II. Singer, D. NJ.
Clemson. A. n. Moreand, John c. Fleming.
George E. McCague. H. T. Bope Joseph +.
Schwab. d. q. Kerr, f. F. Wood. q. D. Packer.
A c. Case. c W. Baker A. c. Dinkey ana
Charles McCreery.
The other individual defendants Henry
Phipps jr. George Lauder. in Europe: II.
NJ. Curry. sick: a. r. Peacock. now in Cali
fornia: 2. T Lovejoy. who has already an
swered: George II. Wishtman. in Florida;
Charles L. Taylor. In California: A. r.
whitney. now in California: Willard Hunsiker.
now in London. and George Megrew.
The document Ct mplete makes nearly twenty
thousand words. meeting every averment OF the
plaintiff In full and detail. denying each and
every allegation Of fraud and averring that
there is truth in any statement in the bill Of
complaint. except what is expressly admitted in
abe answer. An abstract of the answer follows:
Il is denied that Andrew Carnegie and the others
named IN the plaintiffs bill IN April May and June
ss2 eXecuied articles OF association Tor me az
scribe 10 an amendinent OF the original certincate
peeh eTgahl%ea as i5e1 Pa l III ,Tnose az
ISOLATION; but for modifying the terms OF the orgi-
At a meeting OF the shareholders on March %
1892, al which the plaintiff, H. c F,rick was pres,
amendment. ana a committee, consisting OF IL g
Frick. H II. Curry and f. T F. I-ovejoy. was ap-
xbic5 had been o9tIIned MI Frick was the brin-
meeting July !, 1892. the COMMITTEES, through Mr.
statement that it had been duly signed and exc
S9nted b, by every member and had been recorded
proved and adopted If there is any defect IN said
FL 5iToIig M m % RE ma enc sGU
trusted TO him by the other members Of the assoca
The averments of plaintiff with reference to
change Of business denied as in the amended
certificate the same language was employed as in
the original. and in fact, there has not been any
change in the character Of business.
was made. The business was enlarged subsequent
70 the change Of name. but this in n9wise changed
the association was increased from 100000 to s25
was made for the payment into the treasury OF the
subscribed in 1881 The absence OF such provision for
q second payment OF capital previously paid in
but may be taken as evidence of the intent of the
parties not to create new association
AMOUNT INVESTED IN THE BUSINESS.
The increase in capital was not paid in coin or
hank notes but it is the association did re-
ceive said amount in cash in the manner in which
commercial transactions OF such extent usually
made by the receipt of checks drawn on solvent
and responsible banks. which We're regularly de
posted to the credit OF the association and upon
presentation at the bank We're paid In addition to
paid into the association in cash and invested in
its property and business more than double that
AS further intention to increase its business
and acquire additional plant. the association pur
chased the property of Carnegie. Phpps & Co,
Limited; separate partnership association for
1892 in the usual manner
an being subscribers to the increased capital Of
The association. Endorsed and delivered their dvi-
posted and collected. On the same day Carnegie
Bf9dnr9 q 3 1 Pgs so 10 s members
ing the earnings previously invested in the COM
pany's property and. as the members receiving
such dividends were all subscribers its increased
CAPITAL, Endorsed and delivered their dividend
and collected in the usual manner. Such payment
solvent bank against actual balance to
ance with spirit and intent of the articles
of association and the laws OF the State.
(Which is not admitted. but denied1 was devised,
approved and carried out by the plaintiff; conse-
questioning The propriety and validity OF HIS own
With respect 10 the claim of plaintiff in the
fourth paragraph Of his bill the defendants are
Of plaintiffs legal advice recent remote, his
belief 10 the legal stutus OF the association his
have been such as TO estop him from questioning
the validity OF Its organization partnership as
Sociation.
The answer then sets forth the history OF Mr..
Tricks membership in the association. To begin
with. his interests were acquired in the same man,
ner as other young partners. He was not required
cases OF newly admitted members for payment out
OF the future profits. Mr.. Tricks interest ac-
quired about January il, 1887. under the terms OF
amounted TO 100000 OF the capital stock. In May
@ an option Was given TO- Mr. Fck 70 aeauirt
cent This option was abrogated in November
ton he credited in his account with the asso
cation with The sum OF $l3S l46 g representing tbs
Increment In the book value Of the interest covered
abrogated
Subsequently he acquired an additional per cen
and then per cent. for which he made cast
payment, eKcepl as hereafter stated. In February
1885 Mr. Frick the owner OF i of the
lSl s.. balance of purchase price He not
however: under his agreement with Mr. Carnegie
personally liable. the interest acquired being the
only security which Mr. Carnegie held. II beins
- that time period Of business depression: Mr.
Prick went 10 Mr.. Carnegie and expressed desire
reduce MS holdings in the association. request
Ing MT Carnegie 10 purchase at the book value
per cent OF the IL per cent held BY him. Mr.. Car
negie had no fears such Mr.. Frick expressed
which Mr.. Frick declared be a burden upon him
Mr.. Carnegie paid him the then book value which
Prick After this transfer Mr Frick held only
percentage from Mr.. Frick for the purchase price
finally adjusted and pad to Mr.. Carnegie. the
payment consisting OF S2s,0O in bonds OF the II. G
FTick Coke Company at par ana slsl 81 in cash
WHAT FRICK PAID FOR HIS INTERESTS
This is all Mr.. FTick has paid his interest.
IN the Carnegie Steel Company. With the credit,
from his stock earnings. the amount paid only
$4,000 all told. for an interest worth 100000 lie
accepted without question the book value for > pei
cent Of his holdings at time when he scared