The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-02-14
TRICKS SUIT FOR MILLIONS.
CHARGES CARNEGIE WITH TRYING
TO FORCE HIM OUT.

Claims Over $I0,O00,00O as His
share in the Business.
Pittsburg, Pa. Feb 13.-Henry Clay
F'rick filed bill in equity to-day in the
Court of Common Pleas No. l of Allie
gheny county against Andrew Carnegie
and the Carnegie Steel Company, Lin
ited
1t prays, first, for a decree that the
pretended transfer of his interests in the
company was. and is null and void, and
that he is still the owner of all such in
terests and is entitled in every lawful way
to represent and act for the same and TO
cancel upon the FIRMS books any such
transfer made or pretended" and all en-
tries (on such books of insufficient, un-
! fair and improper valua tions of the Car
negie Steel Company, Limited. assets and
Of plaintiffs interests therein requiring
the books to show real values.
The petition prays for an injunction re-
stralning the defendants from interference
in his interests in the company and from
excluding him from participation in its
care and mana cement.
In case the defendants shall refuse the
| offers made by the plaintiff, and shall
refuse to continue the said business and
allow him to participate in the manage
ment and control thereof and of the prop
critics of the Carneigie Steel Company,
Limited, in conjunction with themselves
and shall insist upon the exclusive man.
agement by themselves of said business
and assets, and shall continue to exclude
the plaintiff from his interest in the busi-
ness and assets of the said firm, 1t is pray
ed that the court will thereupon allow the
plaintiff to declare the said firm of the
Carnegie Steel Company, Limited, dis
solved, and appoint a receiver to take
charge of all the business and assets of
said firm, permitting said receiver to full
fill unperformed contracts and to do what
ever shall be necessary in and about the
proper liquidation of its affairs, and that
after the conversion of the entire assets
of the company into money and the pay
ment ofNthe debts of said company, the
courts will then distribute the balance
| thereof among the partners in proportion
to their interests. The petition asks:
Wants Carnegie TO Pay Losses.
THAT an account be taken between Car
negie and the plaintiff, whereby Carnegie
shall be charged with all the losses, ex-
penSeS of damage he has caused by his
Illegal and fraudulent conduct; and that
if Carnegie persists in his said fraudulent
scheme and refuses the offers hereinbefore
made, and thus causes the actual dissolu-
ton of the firm, all losses incurred by
the plaintiff by reason of the said disso-
luton and forced winding up of the firm
shall be charged against him, and that he
shall be decreed to make good and pay
to the plaintiff the difference between
what his interest was fairly worth on or
about Feb. l, 1900 and the amount he shall
receive through the decree of this court
in final liquidation and settlement of the
said firm"
Enormous Profits Made.
The bill in equity is very lengthy. Az
Ter detailing the growth of the great
plant, Mr. Frick says in the Carnegie
Steel Company, Limited, Carnegie owns
5S1k per cent interest, and Frick
per cent The business was enormously
profitable, and in 1899 the firm actually
made on ow-prieed contracts, in net
profits after paying all expenses of all
kinds, $21O00,00O
In November 1899, Carnegie estimated
the net profits for 1900 at $40,0O00O0 and
Frick then estimated them at $42, ,500,-
900. Carnegie estimated the entire prop
erty at over $3.50, 100000, and avowed his
ability in ordinarily prosperous times, to
sell the property on the London market
for $500 10000.
In May 1899, Carnegie actually received
in cash, and still keeps. sl,170,000 given
him as a mere bonus for his ninety-days
option to sell his 5S1& per cent interest
in this steel company for $157950,00o
Frick's per cent. on that basis would
be worth $1623S,000.
Frick now alleges, right at the hight
of this enormously successful business
whereby at least, in part, he made for
Carnegie, these enormous profits and
values, that Carnegie suddenly and with
m2levolent intent toward him on Dec. T.
1890. arbitrarily demanded of him his
ignatton as chairman and this without
reason, except to crafty Carnegies mall
ice.
Efforts to Shut Him Out.
Frick, in the interest of harmony. gave
his resignation and subsequently and on
the 11th day Of January, 1900, after Car
negie had thus deprived him of mis- Office
he (Carnegie) demanded of Frick that he
(Frick) should sell to the firm his inter-
est in 1t as figure which would amount
to less than one-half of what his interest
is fairly worth. Frick refused to sell
at that price, but offered to sell and allow
three men to value the interest sold. Car
negie refused this, and left Frick threat
eniEg him for not yielding to his demand
Frick alleges that al this time Carnegie
was fraudueutly and secretly, without
Frick's knowledge or consent, attempting
to carry out a scheme, which, If success
tul, would enable carnegie 10 connScate
Frick's interest In the firm at probably
not much over 33 per cent. of it's real
value; that is, say, not over 100000 for
what on the basis OF Carnegie's option
was worth SIG, ,2SS, 600. This scheme, Frick
says, he can prove was 10 revive and to
reinstate and make operative an unexe-
cuted and abandoned so-called iron-clad
agreement OF 1887 which related
solely to the orig 1al Carnegie
Brothers & Co., Limited. and never
did include the new firm Of the Car
negie Steel Company. Limited; and also.
to attempt to make binding on Frick an
other so-called iron-clad agreement OF
1892. which Carnegie never before had exc
cuted, which Henry Phlpps had always
refused to execute, and which many other
partners had never signed. Carnegie in
duced some of the copartners to sign the
so-called agreement of 1892 at a recent
meeting and then, without warning
sprung upon Frlck a notice on Jan. 15
1900. which he has also caused his copart-
ners secretly to sign. and which was based