Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-03-13

ton, and upon presentation at the
bank were paid. In addition to the
sum of 100000 thus paid there has
been paid into the association in cash
and invested in its property and BUSH
ness more than double the amount.
In furtherance of the intention to-
increase its business and acquire adj
ditional plants, the association pur-
chased the property of Carnegie,
Phipps & Company, limited, separ-
ate partnership association, for s10.-
OOO, 900, and paid for same about June
80, 1892, in the usual manner.
The members of Carnegie, Phipps &
Company, limited, all being subscrib-
ers to the increased capital of the as
ISOLATION, endorsed and delivered their
dividend checks to the association,
which were deposited and collected.
On the same day Carnegie Bros. &
Company, limited, paid to it's members
a dividend of 200 per cent, or $10,-
100000, representing the earnings pre-
viously invested in the companys
property, and as the members receiv-
ing such dividends were all subscrib-
ers to its increased capital, endorsed
and delivered the dividend checks to
the association, which were deposited
and collected in the usual manner.
Such payment was good and sufficient,
as the checks were drawn on a solvent
bank against an actual balance to their
credit and the act was entirely in ac-
cordance with the true spirit and in
tent of the articles of association and
the laws of the State.
The method of payment, If open to
criticism (Which is not admitted, but
denied) was devised, approved and
carried out by the plaintiff; conse-
quently the plaintiff is estopped from
in any wise questioning the propriety
and validity of his own acts.
With respect to the claim of plain
tiff in the fourth paragraph of his bill,
the defendants are ignorant, and call
for proof. However, regardless OF
plaintiffs legal advice, recent or re-
mote, or his belief as to tie legal sta
tus of the association. his own ac-
lions in connection with it, aid it's
business have been such as to stop
MIN from questioning the validity of
it's organization as partnership as
ISOLATION.
The answer then sets forth the his
tory of Mr.. Tricks membership in the
association. To begin with, his in
terests were acquired in the same
manner as other young partners. He
was not required to pay for same,
provision being made, as in all cases
of newly admitted members, for pay
ment out of the future profits. Mr..
Tricks interest was acquired about
January IA, 1887, under the terms of
what is known as the iron clad agree
ment," and amounted TO 100000 Of
the capital stock. In May, 1889, an
option was given to Mr.. Frick to ac-
quire on January 1, 1894, ar additional
interest of per cent This option
was abrogated in November, 1890,
with Mr.. Tricks cesent, but as COM
pensation he was credited in his ac-
count with the association with the
sum of $13S,146.6S, representing the
increment in the book value of the in
terest covered by his option from the
time it was given until it was abro-
gated. Subsequently he acquired an
additional one per cent, and then eight
per cent, for which he made no cash
payment, except as heretofore stated.
In February, 1895, Mr.. Friek was the
owner of II per cent or the capital
upon which he owed Andrew Carnegie
81 500, 1913 balance of purchase price.
He was not, however, under his agree
ment with Mr.. Carnegie, personally IL
able, the interest acquired being the
only security which Mr.. Carnegie held.
1t DelilS DIT LHdl llLHe d peTiOu VI DuS-
mess depression, Mr.. Frick went to
Mr.. Carnegie and expressed desire
to reduce his holdings in the associa-
ton, requesting Mr.. Carnegie to pur-
chase at the book value five per cent
of the IL per cent held by him. Mr.
Carnegie had no fears, such as Mr..
Frick expressed, and agreed to relieve
Mr. Frick of the charge which Mr.
Prick declared to be burden upon
him. MrCarnegie paid him the then
book value, which was greatly in ex-
cess of the price paid for it by Mr.
Frick. After this transfer, Mr.. Frick
held only six per cent of the whole,
and the balance due on that percent
age from Mr.. Prick for the purchase
price was finally adjusted, and paid
to Mr.. Carnegie, the payment consist
ing of $4,000 in bonds OF the H. C.
Frick Coke Company at par, and
s191S3 in cash.
This is all Mr.. Frick has paid for
his interests in the Carnegie Steel
Company, with the credits from his
stock earnings the amount paid was
only 5000 600 and all told for an in