The age-herald., 1900-03-23
Famous Iron Clad Agreement is Wiped
 Out.
THE EQUITY SUIT IS ENDED
Capital Stock of the New Organization Will be Over $2O0,ooO,Ooo, Tricks Share Amounting to
 Nearly $15,oOO,ooo

steer company, limited, pecoLues d stoSh company with a capital variously esti- mated at from $2OO.OOOO 600 to $250,OOO,OoO the famous 'iron-clad agreement is wiped out, all litigation between the partners in the Carnegie company is dropped, and H. C. Prick the former president of the com pany, virtually secures all he contended for. The facts are embodied in an author ized statement, issued tonight by the Car nege Steel company, limited.
 The Atlantic City conferences resulted in an agreement, signed by all the parties in- terested, except Mr. Prick and John Walk CT, the latter the principal plaintiff in the suit against the H. c. Prick Coke company. The document reached Pltsburg today, and after a comparatively brief conference be- tween the gentlemen, was signed by both of them.
 To President c. M. Schwab Is given the credit for effeeting this amieable arrange ment. From the first he was opposed to al- lowing the contentious between the pact- ners to reach the courts Unable to pre- vent this, after the litigation was begun, he Tent his energies toward securing settlement that would be satisfactory to all inc parties. He presented a number of positions, but one after another they were rejected, until he advocated the or ganization of a stock company, the capital to be based on the value of the company's properties, and its earning capacity, and the partners in the limited corporation to receive stock proportionate to their present holdings.
 AS the capital of the Carnegie Steel com .pany limited, is $25, ,000 GOO, under the pro- posed reorganization each partner would hold either eight or ten times that amount in ths corporation. As MT. Prick holds per c. mt of the capital stock in the Car negie Steel company, he will receive In stock of the new concern $12,0Oo,0OO if 1t Is capitalized at $2O0, ,O00,O00; $i5.00o,OOO if the figure is put up to s25O 900 900. His contention in his suit was that his stock was worth at least s15, ,000, ,0O0 and he sued to recover the difference between that and the amount offered him when he was invited, under the "ron-clad" provisions, to resign
 MT. Carnegie Notified
 AS soon as the signatures of Mir. Prick and MT. Walker were affixed to the agree ment today, word was telegraphed to MT. Carnegie and this afternoon he authorized the issue of a statement on behalf of the Carnegie Steel company, limited. and H. C. Prick Coke company, in part as follows:
 '4rae effect of the proposed re-organiza- tion will be to terminate the equity pro- ceedings instituted against the Carnegie Steel sccnpany, limited, and the H. c. Prick Coke -company
 .sThe corporate form Nor the large and growing business has been determined upon the preference to the limited partnership or ganizatlon for ol5vious advantages. The basis of the corporation proposed last year mas been agreed to by all the parties and will be adopted rendering now negotia- tions unnecessa1y but this is matter of no public concern, since no responsibilities to the pulol.c whatever are incurred. It concerns the owners alone.
 ''rhe new company a5socios the stock of the coke company, and thus all of the coke company's stockholders become stockhold- CTS of the new concern, including MT. Prick whose interest in the steel company WAL be thus protected, which is satisfac- tory to all parties the controlling part ners expressing no desire to gain pecuni- arily by their action"
 MT. Carnegie has given President Charles M I5cLlwa,5 his proxy to act and Mr. Schwaio will continue as the executive head of the new company.
 MT. Prick refused to discuss the plans of the re-organized company in detail when questioned by an Associated Press repre- sentative tilis evening. He said the ar engagements entered into Were satisfactory to llim or he would not have signed the agreement. When asked what would be the value of the stock he would control when reorganization was complete, MT. Prick rephed that it was impossible at present to answer that question, as the capitalization of the new company had not yet been determined. He would, Nike all other stockholders, be given stock dn the new company, proportionate with the per centage he held in the limited partnership concern. When asked about the iron clad agreement" MT. Prick smiled and said nothing of the kind could legally exist under an incorporated stock company so he was giving the matter no concern. The ex-chairman refused positively to discuss the matter further.
 President Schwab JubiIant
 President c. M. Schwab who will be at | the head of the big combination was met | in the Carnegie building immediately after | the stockholders meeting. He was jubilant | over the happy turn affairs had taken. | When asked as to the capitalization of the l reorganized company, MT. Schwab said | that was a matter for future consideration. | The first step only had been taken, he said, | and there were many details to be ar | ranged before the organization was com | plete.
 "What will be the wording of the iron clad under the new order of things?"
 There will be no iron-clad There can not be any such agreement legally made | between members of an incorpora ton such | as is proposed"
 Secretary A. M. Moreland of the Carnegie | Steel company said:
 ''The capitalization of the new Carnegie | Steel company has not yet been deter !