Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1900-03-29
HATCHET BURIED.
Carnegie and Frick Sign a Peace
Treaty.
Law Suits Begun by Frick are TO be
Dropped and Their Combined In-
'erests are 10 be Merged Into
One Corporation with an
Immense Capital.


Carnegie have been settled. This an
nouncement was made officially by
the Carnegie Steel Co. late Thursday
afternoon. The parties Interested
have agreed upon a plan of reorgani-
zation, the new concern to be incor-
porated under the laws of New Jer-
sey. The effect of the proposed reor-
ganization will be to terminate all
equity proceedings now pending.
The Carnegie Steel Co. becomes a
stock company with n capital various
ly estimated at from $200,000,00O to
$250,000,00O. The famous ''ironclad
agreement" is wiped out and II. C..
Frick, the former president of the
company, virtually secures all he has
contended for.
Atlantic City conferences resulted in
an agreement signed by all the parties
interested except Mr.. Frick and John
Walker, the latter the principal plain
tiff in the suit against the Frick Coke
Co. The document reached Pittsburg
yesterday and, after a brief conference
between the two gentlemen, was sign
ed by both of them.
To President Schwab is given the
credit for etfecting this amicable ar
rangement. From the first he was OPP
posed to allowing the contentious be-
tween the partners to reach the
courts. Unable to prevent this, after
the litigation was begun, he bent his
energies toward securing Il settlement
that would be satisfactory to all the
parties.
The Carnegie Steel Co. and the TT.
c. Frick Coke Co. authorize the follow
ing statement: 'rhe partners of the
Carnegie Steel Co. and the stockhold-
ers of the III. c. Frck Coke Co. have
agreed upon a plan of reorganization.
yeSting the ownership and control OF
said companies in one company, to be
incorporated under the laws of New
Jersey.
"The effect of the proposed reorgan-
ization will be to terminate the equity
proceedings instituted against the
Carnegie Steel Co. and the II. C. Frcll
Coke Co.
"rhe articles of association of the
Carnegie Steel Co. as limited partner
ship organization expire by limitation
| April /, 1901. but the change contem-
plated will be effected before that
date, as the future form of the organ
ization has been under consideration
for some time and the plan is now
| about fully matured. The corporate
form for the business has been deter
mined upon in preference to the linn
tied partnership organization for its
obvious advantages. The objection to
the corporate organization has been
| overcome, a way having been found by
which deserving employees can be re-
ceived into the company 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 CO., will remain
as now, under Pennsylvania charters,
| the steel company taking Pennsyl-
vania corporate charter instead of re-
newing its articles of limited partner
ship. As no charter can be obtained
under the laws of Pennsylvania under
which all the various departments and
| interests of the Carnegie companies
can he consolidated. it is necessary to
obtain a charter under the laws of
| New Jersey which will enable the con-
| troll of the interests concerned wher-
ever situated. Other powers are also
| obtained Wnlcn are eSSenIldl 10 Il con-
Germ whose sphere OF operations has
grown to embrace the mines and mar
kets of the world, with railroads and
| fleets; something never contemplated
when Pennsylvania present restrict
ed laws were adopted The stocks ana
| bonds of the new corporation, instead
of being offered to the public, as once
| contemplated, are taken by the pres
| mt owners. The basis of the corpora
tion proposed last year has been
| agreed to by all the parties and will
De adopted, rendering new negotia-
tons unnecessary, but this is a matter
| Of no public concern, since no respon
siblities to the public whatever arc
| incurred 1t concerns the. owners
| alone.
The new company absorbs tine
stock of the coke company and thus
all of the coke company's stockholders
become stockholders of the new con-
Germ, including Mr.. Frick, whose in
forest in tue steel company will be
| thus protected.
| "Mr. Carnegie has given President
Charles NJ. Schwab mis- proxy to act as
required, and Mr.. Schwab will con-
tinue as the executive head of the new
com pany."