Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-03-13


he was admitted as other young part
ners, his payment for partnership be-
ing out of future profits.
INTERESTS OF Prick.
His interests were acquired under
the "ironclad agreement" and consist
ed of 100000 of capital stock Through
various opportunities he had in Febru-
ary 1895, became owner of eleven per
cent of the capital on which he owed
Carnegie S1,S09, 191 balance of purchase
price. the interest being CarncGie's on
~ security. Afraid of the then exist
ing business depression he had asked
Mr.. Carnegie to buy at the book value
five of his eleven per cent. which was
done. This is all Mr. .Fricl has paid
for his interests in the Carnegie Steel
Company With the credits from his
stock earnings the amount paid was
only $4,000 all told for an interest
worth $1,000, 900. He accepted without
question the book value for five per
cent of his holdings at Il time when he
was scared and feared the stock would
dcpreciate. but now refuses TO accept
book valuation for the balance of his
holdings.
TRICKS FUNCTIONS.
The answer also avows that since
1895 Mr. Tricks functions have been
merely advisory, the president assum
Mr.. Prick. 1t is alleged, was dissat-
islied demanded absolute power, and
with violent outbursts of passion, at
tempted to make personal matter of
business differences. 1t is alleged Mr..
F'rick gave most of his time To other
enterprises and various speculative
schemes for placing the property Of the
association in the hands Of promoters
t. be foatcd in marketable securities
on the public. The defense admit his
ability.
CARNEGIE'S HOLDINGS.
The answer says Mr. Carnegie, on n
paper signed by all acting members of
the board of managers. demanded
Tricks resignation solely to preserve
harmony, and Carnegie denies control
ling or seeking to control his associ-
ate partner. He admits that Tricks
averment as to profits for 1899 arc sub
stantially true, but adds that December
IL last the net value of assets was only
$3.50, l0i. 1t is denied that animosty
has been manifested towards the plain
tiff or his failure of -others to avail
himself of an option given by Carnegie.
In this connection 1t is stated that the
price to be paid for the property of the
association and the coke company on
this option was $500. 000,0 900, being on
the basis of $3.50, 100000 for the prop
erty or the association and the bal
ance for the coke property. Mr.. Car
negie was 10 receive for his interests
100000 900 in bonds and the balance,
about s57 $50. 900, in cash.
Mr. Frick, it is claimed. has upheld
and enforced tho so-called "ironclad
agreement" at all times. opposing an
attempt on the part of Mr.. Henry
| Phipps to make n change in the orig
| inal and Mr.. Fricl1 is the first to at
| tempt to evade 1t.
AMOUNT DUE FRICK.
The answer AYERS that 81, 300, 900 is the
| full amount due Frck. While in tho
association. In addition to an adequate
| salary as manager. Mr. F'rick. the an
swer AYERS. received actual dividends
| in cash. which not only repaid him the
sum oe 100000 which he himself paid
| for his interest, but an additional sum
or clenr profit. of S93S,275.S7. The de-
| PENDANTS say that plaintiff has no rea-
son 10 complain of the operation of a
| contract which gives to him nearly
| $4,000. 900 for an interest which involved
| no investment of capital by him, and
| which has already paid him, in cash
| profits of almost 81 100000.
VALID CONTRACT
| The proposition made by MIR. Frick
to arbitratc his interests is rejected in
order to maintain the integrity of the
contract governing since 1887
| Concluding, the answer saws tho So
called ironclad agreement is u good and
Vaiid contract and binding upon the
piaintlf, and asks that the bin he dis
missed. plaintiff TO pay costs.
|