Bradford County telegraph., 1900-02-16
Charges Are Brought Against Steel
Magnate and PhilanthrOpiSt.
he IS ACCUSED OF SCHEMING
Business Partner Alleges He Was
FTaudulently Driven Out of the
Firm--Suit In Equity Filed.

A Plttsburg, Pa, dispatch says:
Henry Clay Frick filed bill in equity
Tuesday in the court of common
pleas No. l of Allegheny county
against Andrew Carnegie and the Car
negie Steel Company, limited, pray
ing first, for q decree that the pre-
tended transfer of his interests in the
company was and is null and void,
and that he is the owner Of all such
interest and is entitled in every law
full way to represent and act for the
same; for an injunction restraining
the defendants from any interference
with his interest in the said company
and from excluding him from partici-
patton in the care and management of
the assets and business
The bill in equity is quite lengthy
and as summarized by Willis Cook,
Esq, counsel for Mr.. Frick, is as fol-
lows:
In 1892 there were two limited part
nerships:
(1l Called Carnegie Bros. & Co.,
limited. with capital of $5,000,000,
which made steel rails and owned only
the Edgar Thompson steel rail in
Braddock township, and
(2) Called Carnegie, Phipps & Co.,
limited, with q capital of S., 900, 900,
which made all kinds of steel plates,
structural material, iron forgings made
the material and built bridges, made
armor plates and made material for
the same.
Carnegie owned over so per cent of
each of the old firms, and he, with
Frick, Phipps and others owning in
terests in each, formed in 1892 what
constituted new partnership called
the Carnegie Steel Company, Limited.
In this Carnegie retained over so per
cent and now has 584 per cent, while
Frick has per cent.
Both old firms were merged into the
new, which had a capital OF S25, 5,OOO,-
900 and operated all the old works.
This new firm was under the immedi-
ate care and supervision of Frick, as
chairman, from 1892 to December 5,
1899. 1t greatly enlarged the capacity
of its different works, enlarged their
output and purchased other plants,
ore mines, etc.
THE ESTIMATES DIFFERED.
In November, 1899. Carnegie esti-
mated the net profits for 1900 at S40,-
600, 900 and Frick then estimated them
at S42, 100000.
Carnegie valued the entire property
at over $3.50, ,000,00 and avowed his
ability, in ordinarily prosperous times,
to sell the property on the London
market for GlO0, 900, 600 sterling, or
$500, 900, 900.
In May, 1899, Carnegie actually re-
ceived i'll cash, and still keeps, 81, 170,-
600 given him as a mere bonus for his
ninety days option to sell his 5St per
cent interest in this steel company for
S157, 100000. Frick's per cent on
that basis would be worth S16, 238, 900.
Frick now alleges, right at the head
of this enormously successful business,
whereby at least in part he made for
Carnegie three enormous profits and
values, that Carnegie suddenly, and
with malevOlent intent toward him, on
December 4, 1899, arbitrarily de-
inanded of him his resignition as
chairman, and this without any reason
except to crafty Carnegie's malice.
Frick, in the interest of harmony,
gave his resignation and subsequently,
on January II, 1900, after Carnegie
had thus deprived him of his office, he
(Carnegiej demanded Of Frick that he
(Frick) should sell to the firm his in
terest in it at a figure which would
amount to less than one half of what
this interest is fairly worth.
Frick refused to sell at that price,
hut offered to sell and allow three
n.en to value the interest sold. Carne-
30 refnsnd this and left Frick, threat
"L:ng h. for not yielding to his de-
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