Little Falls weekly transcript. (Little Falls, Morrison Co., Minn.) 1894-19??, 1900-02-16
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n. c. Frick Files a Bill of T..
uity Against Carnegie anc
His Steel Company.
Asks the Court for Relief G.
This Failing, the Setec-
ton Of a Receiver.
UGLY CHANCES patftRREz
Alleges Carnegie Forced Him
to Resign the Chairman
ship Of the Concern.
Also Accuses the Steel King
Of Seeking to Confiscate
PLAINTIFFS Stock.

P1TTsBURa, Feb l4.-H. G. Prick has
filed bill in equity in the court Of com
mon pleas Of Allegheny county against
Andrew Carnegie and the Carnegie
Steel company limited.
Mr.. Frick asks Tat the pretended
transfer of his interests in the company
be declared null and void; that an
injunction be issued restraining de-
PENDANTS from interfering with his in
terests in the said c. mpany; that if the
defendants refuse the offers made by
plaintiff receiver DC appointed to ta}o
charge of the business; that al, account
ing be taken between Carnegie and the
plaintiff whereby Carnegie shall be
charged with all the losses, expense and
damage he has caused by his illegal and
fraudulent conduct.
; The bill in equity is quite lengthy
and makes some ugly charges against
Mr.. Carnegie. After giving in detail
the organization of the original COM
pany, bringing affairs down to 1899, it
continues:
| Managed Solely by Frick.
Carnegie owned over so per cent of
each of the old firms, and he, with
! Frick, Phipps and others, owning inter-
ests in each, formed in 1892 what con-
stituted a new partnership >sll~d the
r.; Carnegie Steel company, limited. In
i this Carnegie retained over 80 Fer cent
, and now has 5S1a per cent, while Prick
! has per cent. Both old firms were
merged into the new, which had cap
ital of S25, COO, 900 and operated Ill the
old works. Tins new irm was under
the Immediate care and supervisor Of
Frick, as chairman, from 1892 to Dec. 5,
1899. 1t greatly enlarged the cccacitY
of its different works, enlarged their
output and purchased other plants, ore
/ mines, etc.
Carnegie lived in New York, pass Il
much Of his time abroad, remaining az
one time for Is consecutive nl,ntlis. lie
did not pretend to lnuuage the current
business, although he was consulted as
to important matters.
Enormous Profits Made.
The business from 1892 to 1900 was
enormously profitable, growing by leaps
and jumps from year to year, until, in
1899, the firm actually made on low
priced contracts, in net profits after
paying all expenses Of all kinds, $2l,-
100000.
In November, 1899, Carnegie esti-
mated the net profits for 1900 at $40,-
600, 600 and Prick then estimated them
at $42, 100000.
Carnegie valued the entire property at
over $3.50, OO0, 900 and avowed his ability
| in ordinarily prosperous times to sell the
property on the London market for
e10O, 900, 900 or $500, 100000.
Frick now alleges, right at the head
| Of this enormously successful business,
whereby, at least in part, he made for
Carnegie these enormous profits and
values, that Carnegie suddenly, and
with malevolent intent towards him, on
Dec.s4, 1899, arbitrarily demanded Of
him his resignation as chairman, and
this without any reason except to
crafty Carnegie's malice.
Would Compel Him to Sell.
Prick, in the interest of harmony,
gave his resignation and, subsequently,
on Jan. II, 1900, after Carnegie had
thus deprived him Of his Office, he Gar
negiey demanded Of Frick that he
, (Frick) should sell to the firm his inter
, est in it at figure which would amount
! to less than one-half of what this inter-
; est is fairly worth. Prick refused to sell
] at that price, but offered to sell and al
low three men to value the interest
! sold. Carnegie refused this and left
! Prick, threatening him for not yielding
! to his demand.
Prick alleges that after his resigna-
ton Carnegie was fraudulcntly and Sc
cretly, without Frick's knowledge or
consent, attempting to carry out a
scheme which, if successful, would
| enable Carnegie, as Carnegie hoped, to
, COZ. t;>catse Erit'k' S interest in the firm at
! probably NOT much over 80 per cent of
! its real val,.r; that is to say, not over
sG,Oo,,.&)) :,r what, on the basis Of
Carlrsio'> SO. .tion, was W1cth $l6, % 900.