The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-03-23
CARNEGIE HAS NEW COMPANY.
FRICK GAINS ALL THE POINTS HE
HAS CONTENDED FOR,

Fricik Gets S15,OO0,0OO Instead of
the $6,OOO,OOO That Was offered
Him-Later Report Makes Capital
stock $35O, 100000.
Pttsburg, March 22.-The Carnegie
Steel Company, Limited, becomes stock
company with capital variously esti-
mated at from $2OO,OOO,OOO to $25O,OO ,OOO
Tn famous "ironclad agreement" is wip-
ed out all litigation between the partners
in the Carnegie Company is dropped and
II C. Frick, the former president of the
company, virtually secures all he has con-
tended for. These facts are embodied in
an authorized statement issued tonight
by the Carnegie Steel Company, Limited.
The Atlantic City conference resulted
in an agreement signed by all the parties
interested, except Mr.. Frick and John
Walker, the latter the principal plaintiff
In the suit against the H. C. Frick Coke
Company. The document reached Pitts
burg to-day, and after a comparatively
brief conference between the two gen
tlemen, was signed by both of them.
To President c. M. schwab is given the
credit for effecting this amicable arrange
ment. He presented a number of PROPOSE
tons all rejected until he advocated the
organization of a stock company, the cap
ital to be based upon the value of the
companys properties and its earning ca
pacity and the partners in the limited
corporation to receive stock proportionate
10 their present holdings.
AS the capital of the Carnegie Steel
Onn DsAN
proposed plan of reorganization each part
ner will hold either eight or ten times as
much stock in the new corporation. As
Mr.. Frick holds per cent. of the capital
stock in the Carnegie Steel Company he
will receive in stock of the new concern,
$2 100000. if il is capitalized at 100000 000;
$5,0O0000 if at $25O,O0O0OO. His contention
IN his suit was that his stock was worth
at least $15,00OO 900, and he sued to recover
the difference between that and the
amount Offered him when ne was invited,
under the "ironclad' provisions 90 resign.
Satisfactory to Frick.
Mr.. Frick said tonight that the ar
rangement was satisfactory. Both he
and President Schwab, who will be at the
head of the big combination, said under
tie present arrangement no ironcIad
agreement is possible.
The stockholders meeting at which the
terms of agreement were sanctioned to-
day, was attended by all officials and con-
Sulting partners of both companies now
within reach.
on the basis of $3.50 900 capitalize ton
of the new company, Mr.. Carnegies hold
lngs, 5S12 per cent, will be worth $146 250,-
OJJ; Henry Phipps, Jr.s, interest, II per
cent, $z7,500,C00 and H. c. Tricks 6 per
cent will stand him SIS, coo. George
Lauder owns 4 per cent and President C.
VI. Schwab, 3 per cent
The Authorized Statement.
The Carnegie Steel Company, Limited
and the H. C. Frick Coke Company, au-
thorze the following statement:
The partners of the Carnegie Steel
Company, Limited, and the stockholders
OF the H. G. F'rick Coke Company have
agreed upon a plan of reorganization
Yesting the ownership and control of said
companies in one company, to be incorpo-
rated under the laws of New Jersey:
The effect of the proposed reorganiza-
ton will be to terminate the equity pro-
ceedings instituted against the Carnegie
Steel Company, Limited, and the II. c.
Frick Coke Company
The articles of association of the Car
nege Steel Company, Limited, as a lin
tied partnership organization expire by
Limitation April l, 1901, but the change
contemplated will be effected before that
date Deserving employees can
be Interested and received into the COM
pany from time to time upon exactly the
same terms as others have been admitted
in the past
"All the various interests, including the
II. c. Frick Coke Company, will remain
as now under Pennsylvania charters, the
steel company taking Pennsylvania coh-
porate charter instead of renewing its
articles of limited partnership =
charter under the laws of New
Jersey enables control of the interests con-
cerned wherever situated in any state or
territory of the Union. Other powers are
q $50 obtained which are essential to a con-
cern whose sphere of operations has grown
10 embrace the mines and markets of the
world, with railroads and fleets, something
never contemplated when Pennsylvania's
present restricted laws were adopted. The
stocks and bonds of the new corporation,
instead of being offered to the public as
once contemplated, are taken by the pres
ent owners themselves.
The new company absorbs the
stock of the coke company and thus all
OF the coke company's stockholders be-
come stockholders of the new concern,
Including Mr.. Frick, whose interest in the
steel company will be thus protected.
which is satisfactory to all parties, the
controlling partner expressing no de-
sire to gain pecuniarily by their recent
notion.
MI carnegie mas given PRESIDENT
harles II. Schwab his proxy to act as
iequired, and Mr. Schwab will continue
7s the executive head Of the new COM
pany."
Companies Are to BE Included.
The properties to be included in the re-
organization of the Carnegie Steel Com
rany, Limited, and allied interests are
Hs follows:
The Carnegie Steel Company, Limited
owning the Edgar Thomson Works. Bes-
Semer, Pa, including Edgar Thomson
hl1st furnaces, Edgar Thomson foundry
Edgar Thomson St9el Works; the Du-
quesne Works, Duquesne. Pa, including
the Duquesne blast furnaces and Du-
quesne Steel Works; the Homestead Steel
Works, Munhall and Homestead Pa, in
Guiding bessemer steel department, open
hearth steel department, armor plate de-
partment and thirteen finishing mills; the
carrie blast furnaces, Rankin, Pa; the
Lucy blast furnaces, Pittsburg, Pa; the
pper Union Mills, Pttsburg; the Lower
nion Mills, Pittshurg; the Latimer Coke