The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1900-03-28
CARNEGIE MAKES DENIAL,
No Ground For Fricks Suit Agains!
the Steel Company.
Allegations OF Fraud Declared Baseless-
How the Plaintiff Got $6.GO0,000
For 100000 Invested.

P;rrssrRG, Penn. (SpeciaD. - Andrew
in the Carnegie Steel Company filed Joint
answer to H. C. Frlck's bill In equity, by
which Frck sues for s16. 1886, 900, which he
claims to be his interest, and for which
Carnegie had offered s8,OOO,OOO.
Instead OF $3.50 OOO, 900 or $500 ,000, 900,
which Frick says Mr. Carnegie had claimed
the business was worth, 1t Is declared In
the answer that tho total assetS OF the as
ISOLATION are only $75, $40, 104.06. Carnegie
admits that he had put n high value on the
property, but says il was in jest at u lunch
con with his partners.
Frick at one time held eleven per cent. OF
the stock, but 1t now appears thut IN
period OF dep ression Dir. Carnegie, at his
solicitation, took I've per cent. Of it of his
hands.
Interesting is the narrative set forth IN
this reply OF Frick's connection with the
company. It declares that his interests
"were acquired In the same manner as
other young partners" He was not re-
uuIred to pny for the same, provision being
mude ns iu Nil cases OF newly admitted
members for payment out OF the future
prSSass; Sa1nesis's reply goes a to explain that
In February, 1895, Frlck was the owner
Of eleven per cent. of the capital,
upon which he owed Andrew Carnegie
81, ,sO9, ,191. .s3, the balance OF the purchase
price. He was not, however, under his
agreement with Mr.. Carnegie, personally
liable, the interest acquired being the only
security which Mr.. Carnegie held.
A period OF business depression followed,
and Mr.. Frlck, according to the statement.
went to Mr.. Carnegie and expressed a de-
sire to reduce his holdings In the associa-
tion. He requested Mr.. Carnegie to pur-
chase ut the book value five per cent. OF
thb eleven per cent. held by him. Mr..
Carnegie ugresd to relieve Mr.. Frick OF the
charge.
Mr.. Carnegie paid him, he says, the then
book value, which was greatly In excess OF
the price paid for 1t by Mr.. Frlck. Alter
Ibis transfer Mr.. Frick held only six per
cent. OF the whole, and the balance due on
that from Mr.. Frlck for tue purchase price
Was finally adjusted and paid to Carnegie.
The payment consisted 1928, 600 In bonds
Of the q. G. Frlck Coke Company. .a
Carnegie AYERS that Frlck has paid only,
$4,000 for an interest worth S5,000,00O.
BE accepted FIVE per cent. Of his holdings
'at time when he was scared and feared
E!he stock would dspreciate. but now re.
fuses TO accept book valuations for the rest
of hisstock." Carnegie claims that he was
always ready to buy. 4s
As to the value Of Frickss services &srr
negle declares that since 1895 they haye
been merely advisory. Carnegle'asd defense
declares rs to Frick that "the defendants
do not question his ability, and say they
would bs glad to have him continue the
business OF the association, had not he
himself forced trouble and rendered such
impossible"
Mr.. Frlck, It Is claimed, uphsld and en-
forced the "ironclnd" at all times. Dur
Ing the years Mr.. FsIck was the active
head Of the association he acquired the In
tsrssts OF all retiring partners under Its
provisions.
As soon as the books are written up Mr..
Frick will be furnished with balance sheet
and about "a, ,91O, 900 In cash aud notes will
be rendered him, being the remaining part
ners' estimate Of the value OF bis interest
aui the full amount due him. This valua-
tion is upon the same basis as that upon
which all other partners and estates OF de-
ceased partners have been settled.
Frick's proposition to arbitrate the value
Of his interest Is rejected. The defendants
do not regard 1t as being made In good
faith. but for the purpose OF obtaining a
! price to which he Is not entitled.
The defendants ask that the bill be dis
missed, wlth>costs placed upon the plain
tifY