Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-02-13

neCfe Never Intended TO sell Out
tn the Protected Combination.
PITTSBURG, Pa, Februry Zone
of he questions that nay be answered
in the event of H. R. Tricks contem-
plated action against the Carnegie
Steel Co. Ltd. coming to trial is: Why
did Secretary F. F. T. Lovejoy resign
the Office he had held almost eight
wears? He had been n of MI. Car
negie's young partners" longer than
that period. and was generally suppos-
ed to occupy such a position that he
was in less danger than some others
Of giving offense by any official ae-
ton. Yet suddenly he resigned. No
announcement of this was Eade, but
when the fact became known it was
admitted. The only information CIV
en- in to questions was that
Mr.. Lovejoy resigned for private rea-
sons and would engage in other bust
ness. Every officer who quit the COM
pany resigned, according to the state
ment or admission made. Even Mr..
Prick resigned" And yet, it is said,
and it may come out in the court, that,
as a matter of fact, Of all these resig-
nations that from time to time have
startled the business world, that OF
Mr.. Lovejoy was the only one that
was voluntary.
The story is a curious one, and
throws into a new light the peculiar
methods of the laird of Skibo. 1t also
adds something to what has become
known of the iron clad agreement that
made possible the ~upheavals in the Of
fetal circle of the steel company. 1t
has been no secret for a long time
that when a man becomes a member
Of the Carnegie Co. he presents his
resignation in blank to the end that
he may be easily retired at any time,
rbut how these designations become OPP
erative never before has been dis
closed, and this has to do with Mr..
L%ovejoy's retirement, according to the
story.
Andrew Carnegie. though he owns
more than so per cent. of the capital
stock of the steel company, and there
by can control absolutely every an
nual meeting or other gathering
of stockholders, occupies no elective
Office in the corporation. His control
of the affairs of the company is main
tanned by his selection for executive
posts of men who will work always
according to his wishes. He elects
them, but once they are installed in
Office he has no legal control over
them. BY means of the ironclad
agreement he gains over them the
power of dismissal and strengthens
his hand where seemingly he has left
it weak by su%rrendering all official
places to his partners. In the ordi-
nary course OF corporation affairs he
would be compelled to wait until the
regular meeting of the stockholders
to get rid of an officer who became
distasteful to him.
AS a stakeholder merely, though he
owns the controlling interest in the
company, Mr.. Carnegie cannot demand
and accept the resignation of any of
the men who hold their official posi-
tions by his favor. The resignation
in blank deposited at the time Of their
becoming members of the company
would be ineffective for his purposes
but for the ironcIad agreement. This
agreement, 1t is said, prescribes the
method Of the acceptance of any res
ignation thus: When Mr.. Carnegie
deems unwise the retention in his bus
mess family of any of it he secures,
from a stipulated number of his part
ners, their signatures to a paper adj
dressed to the undesired one, inform
ing him of the acceptance of his res
ignation, and the resignation will not
become effective unless the necessary
signatures are secured. The presenta-
ton of this paper is the blow that
kills. OF course Nh. Carnegie might
have made the agreement read that
designations must be presented at his
individual behest. The system he
adopted suits his purpose better. 1t
gives him a more sensitive touch with
the pulse of his associates. ANY
friendships that might grow up
among his partners and become
stronger than interest in him would
become more readily apparent under
the system adopted.
The first man to rebel against the
demand for his signature I o one OF
these resignation acceptances, il is
said, was Mr.. Lovejoy. He refused 10
be a party TO the ousting OF Mr.. Frick.
As the story goes, Mr.. Carnegie went
to Mr.. Lovejoy with the paper an
nouncing to Mr.. Frick the acceptance
Of his resignation signed in blank
years ago, and demanded his signature.
Mr.. Lovejoy Is noted for his bland
smile and a u It is said