New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-23
THE NEW STEEL GIANT.
PLAN OF CARNEGIE REOR-
GANIZA 7TON MADE PUBLIC.
TO BE CAPITALIZED AT 100000, 600
STOCKS AND BONDS TAKEN BY
PRESENT OWNERS

PRESENT OWNERS
Advices from Pittsburg last night confirmed
officially the accuracy of the dispatch from that
city. published in yesterdays Tribune regard
ing the settlement of the difficulty between An
drew Carnegie and H. c. Frick Messrs. Car
negie and Frtck and their respective associates
have assented to plan under which a new COM
pany TO take all the properties owned by
these interests, is 10 be Incorporated under
the laws of New-Jersey this company to be
known as the Carnegie Company and to have
capital stock of S160O00000 Steel works coke
works, blast furnaces. railway companies,
steamship companies. gas companies water COM
panies, iron mines and coal lands are all to be
owned and operated by this colossal corporation.
in which it is understood, Mr.. Carnegie is TO be
the controlling shareholder AS the capital stock
will represent the estimated aggregate of the
properties absorbed, and is all to be subscribed
by the present owners. the Carnegie Company
will be really the vastest corporation of it's kind
in the United States. if not in the world
although the Federal Steel Company is capital
lied at 5000 OOOO OOO it's outstanding is less
than half that great sum.
A natural consequence of the agreement for
the organization Of the Carnegie Company is the
abandonment. formally announced of the
proceedings in equity instituted by Mr.. Frick
last month, entire harmony having been re-
stored between Mr.. Frck and Mr.. Carnegie.
HOW IT WAS BROUGHT ABOUT.
Pittsburg, March 22-The Carnegie Steel Com
pany Limited becomes a stock company. The
famous "ironclad agreement is wiped out all
litigation between the partners in the Carnegie
company is dropped, and II. c. Frick, 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. The Atlantic City
conferences resulted in an agreement signed by
all the parties interested except Mr. Frick and
John Walker the latter the principal plaintiff in
the suit against the II. c. Frick Coke Company.
The document reached Pittsburg to-day. and
after a comparatively brief conference between
the two was signed by both of them.
To President c. NJ. Schwab is given the credit
for efecting this amicable settlement. From
the first he was opposed 10 allowing the
tentions between the partners to reach the
courts Unable to prevent this after the ltiga-
ton begun he bent his energies toward
securing a settlement that would be satisfactory
10 all the parties He presented number of
propositions. but one after another they
rejected, until he advocated the organization of
a stock company. the capital TO be based upon
the value of the company's properties and its
earning capacity, and the partners in the linn
tied corporation to receive stock proportouate
to their present holdings. Mr.. Fricl holds
per cent OF the capital stock in the Carnegie
Steel Company. His contention in his suit was
that his stock was worth at least S15,O00OO0,
and he sued 10 recover the difference between
that and the amount offered him when he
invited under the ''ironclad' provisions, to
sign.
AS soon as the signatures of Mr.. Frick and
Mr. Walker were affixed 10 the agreement to-
day word was telegraphed to Mr.. Carnegie. and
this evening he authorized the issue of the fol-
lowing statement on behalf of the Carnegie
Steel Company Limited, and the H. c. Frick
Coke Company:
The partners Of the Carnegie Steel Company P1I5,:
Coke Company have agreed upon d plan OF rel
Of said companies in company, 10 be incorpo-
rated under the laws of New-Jersey III,
The effect OF the proposed reorgS5nzation VII VII oe
angT fh areete 1e stess tompany Limited ana
the II. c. FriCk Coke Company.
The articles of association OF the Carnegie Steel
zation expire by limitation April |, 1901, the
change contemplated will be effected before that
date as the future form of the organization has
been under consideration for some time, and the
form for the large and growing business has been
determined upon in preference to the limited
/ The objection the corporate organization has
been overcome a way having been found by which
deserving employees can be Interested received
into the company from time 10 time upon exactly
the terms as others have been admitted in the
past ..- ,o..-.- ,o,,,z,-.- .no II p
Frick Coke Company. will remain now, under
Pennsylvania charters, the steel company taking
Pennsylvania corporate charter instead Of renew
ing its articles of limited partnership. As no
| charter be obtained under the laws of Penn
syvania under which all the various departments
and interests of the Carnegie companies can be
consolidated. it will be TO obtain char
/ under the laws Of New-Jersey, which Will en-
able the control of the interests concerned wherever
situated. in any State or Territory of the Union
Other powers are also obtained which essential
/ a concern whose sphere Of operations has grown
/ embrace the mines and markets of the world
with railroads and fleets; something never con-
teuplated when Pennsylvania's present restricted
laws adopted. The stocks ana bonds of the
corporation. instead OF being offered to the
public determined. taken by the pres
/ ent owners themselves The basis of the corpora
ton proposed last year has been agreed 10 by all
parties and will be adopted. rendering negotia-
tiOns unnecessary, but this Is matter Of no pub
lie concern, since responsibilities the public
alone.