Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-03-23
CARNEGIE AND Prick
Peace Declared Between the Iron
and Coal Magnates.
NIr. Carnegie Capituintcs to MIR. Frlcls, who
by the Terms of the Agreement Entered
Into, Secures All That Ho contendod
For.
tBy Telegraph to virginian-Pnot.>


Pittsburg. Pa. March 22.-The Carne-
gle Steel Company. Limited. becomes
stock company with a capital variously
estimated at from $500. 900, 900 to $780,
100000 the famous 'iron-clad agree
ment' is wiped out, all litigation be-
tween 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, Linn
tied. The Atlantic City conference re-
suited In an agreement signed by all
the parties interested except Mr.. Frick
ana John Walker, the latter the nrin-
cipal plaintiff in the suit against the
n c. Frick Coke Company. The doc
ument reached Pittsburg to-day and
alter a comparatively brief conference
between the two gentlemen was signed
by both of them.
FRICK WINS.
To President G. NJ. Schwab is given
the credit for effecting this amicable
arrangement. He presented a number
OF propositions. all rejected until he
advocated the organization of a stock
company, the capital to be based upon
the value of the company's properties
and it's earning capacity. and the part
ncrs in the limited corporation to re-
celVe stock proportionate to their pres
ent holdings. AS the capital of tho
Carnegie Steel Company, Limited Is
S2o,O00O00, under the proposed plan of
REORGANIZATION. each partner will hold
either eight or ten times as much
stock In the new corporation. AS Mr.
Flick holds six per cent. of the capital
stock In the Carnegie Steel Company
he VIII receive in stock of the new CON
Germ sl2,o00,000 if it is capitalized at
5000, 100000; $4,000 900 If at $3.50. 600 600
HIS contention in his suit was that his
STOCK was worth at least $4,000, 900. and
ne sued to recover the difference be-
tween that and the amount offered him
when he was invited, under the "iron-
clad" provisions. to resign
MI Frick said tonight that the ar
rangement was satisfactory. Both he
ana president Schwab. who will be the
mead OF the big combination. said that
under the present arrangement no iron
clad agreement is possible
INDIVIDUAL HOLDINGS.
The stockholders meeting, at which
the terms of agreement were sane
toned to-day, was attended by all off,
Gals and consulting partners of both
companies now within reach
On The basis of $3.50. 900, 600 capitalize
tion or the new company, Mr. Car
negies holdings. 5Sk per cent, will be
worth s14G,25o.OO0: Henry Phipps. Jr..s
interests. II per cent, s27 500, 600, and H.
S1o.OO0,000. George Lauder owns q per
cent. and President C. NJ Schwab 3
per cent
AUTHORIZED STATEMENT.
The Carnegia Steel Company. Lin
a. ~ II
pany authorize the following state
ment:
The partners of the Carnegie Steel
Company, Limited. and the stockhold-
ers of the II. c. Fricll Coke Company
nave agreed upon a plan of reorganiza-
ton, vesting the ownership and control
or said companies in one company. to
De Incorporated under the laws of New
Jersey.
The effect OF the proposed reorgani-
cation will be to terminate the equity
proceedings instituted against the Car
negie Steel Company, Limited, and the
ID. e: Frick Coke Company
The articles OF association of the
Carnegie Steel-Company Limited. as
limited partnership organization. ex-
pire by limitation April first 1901. but
the change contemplated will he af-
fected before that date. Deserving en-
ployes can be interested and received
INTO the company from time to time
upon exactly the same terms as others
have been admitted in the past.
All the various interests. including
the II. c. Frick Coke Company, will re-
main as now,under Pennsylvania char
ters,the steel company taking a Penn
sylvan'a corporate charter instead of
renewing Its articles Of limited part
pership. a charter under
the laws of New Jersey enables control
of the interests concerned wherever
situated.in anyState or Territory of the
Union. Other powers are also obtain
ing which are essential to n concern
whose sphere OF operation has grown
to embrace the mines and markets of
the world. with railroads and fleets,
something never contemplated when
Pennsylvania present restricted laws
were adopted. The stocks and bonds
of the new corporation, instead of being
offered to the public as once contem-
pated. are taken by the present own
ers themselves.
1.-The new company absorbs the
stock of the coke company and thus
all of the coke company's stockholders
became stockholders of the new con-
Germ. including Mr.. Frick, whose inter-
est in the steel company will be thus
protected which is satisfactory to all
parties, the controlling partners eX-
pressing no desire to gain pecuniarily
by their recent action.
"Mr. Carnegie has given President
| Charles r. Schwab his proxy to act as
required. and Mr.. Schwab will continue
as to the executive head of the new
! company.
PROPERTIES INCLUDED.
The properties to be included in the
reorganization of the Carnegie Steel
! Company. Limited. and allied interests
| are as follows: The Carnegie Steel
| Company. Limited, owning the Edger
| Thompson Works. Bessemer. Pa, in