The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-03-23
OUT Of COURT
HIR. FRICK CARRIES HIS POINT
WITHOUT AN APPEAL TO
THE LAW
DETAILS OF THE COMPROMISE
MEANS NEW CORPORATION WITH
CAPITAL OF TWO HUNDRED
MILLIONS
IRoN-CLAD CONTRACT IS OFF
MIR. Frick Declines to Discuss De-
tails of the SettIement-AH
Parties to Controversy
Seem Pleased.

PITTsBURG, Pa, March 22.-The Car
negie Steel company, limited becomes a
stock company, with a capital variousIy
estimated at $4,000 600 to $3.50, ,OO0 900, the
famous ironclad agreement is wiped out,
all litigation between the partners in the
Carnegie company is dropped, and H. c.
Frick, the former president Of the com>
psny, virtually secures all he has COM
tended for.
These facts are embodied In an au
thorized statement issued tonight by the
Carnegie Steel company, limited. The
Atlantic City conference resulted in an
agreement signed by all the parties In
terested, except Mr.. Frick and John
Walker, the latter the principal plaintiff
in the suit against the H. G. Friok Coke
company. The document reached Pitts
burg today, and after a comparatively
brief conference between the two gen,
tlemen was signed by both Of them.
Today President c. M. Schwab is given
the credit for effecting this amicable ar
rangement. From the first he was op~
posed to allowing the contentious be-
tween the partners to reach the courts
Unable to prevent this after the litiga-
ton began, he bent his energies towards
securing a settlement that would be sat
isfactory to all the parties. He pre-
sented a number Of propositions, but
one after another they were rejected
until he advocated the organization of a
stock company, the capital to be based
upon the value Of the company's prop
critics and its earning capacity.
On the basis of $3.50, OOO,O 900 capitaIiza-
tion Of the new company, Mr. Carnegie's
holdings, 5S12 per cent, will be worth
$146, ,250, 900; Henry Phipps Jr.s interest, II
per. cent, $27,5OOOOO, and H. c. Fricks
8 per cent will stand him $4,000, ,OOO
George Luder owns 4 per cent, and
President c. M. schwab per cent.
OFFICIAL STATEMENT.
The Carnegie Steel company and the
H. c. Frick Coke company authorized
the following statement:
THE partners of the Carnegie Steel
company, Ltd, and the stockholders of
the H. c. Frick Coke company, have
agreed upon plan OF reorganization,
vesting the ownership and control of
said companies in one company, to be in
corporated under the law Of New Jer-
seyyi syy,ii,,
Inc erect or the proposed reOrSarlZa-
ton will be to terminate the equity pro-
ceedings instituted against the Carnegie
Steel company. Ltd, and the H. c. Frick
Coke company.
negie Steel company, Ltd, as a partner
ship organization, expire by limitation
April l, 1901, but the change contemplate
ed will be effected before that date as
the future form of organization has been
under consideration for some time, and
the plan is now about fully matured. The
corporate form for the large and grow
ing business has been determined upon
in preference to the limited partnership
organization for its obvious advantages.
The objection to the corporate organiza-
been found by which deserving employees
can be introduced and received into the
company from time to time upon ex-
actly the same terms as others have
been admitted in the past
"All the various interests, including
the III. c. Frick Coke company, will re-
ters. the steel company taking a Penn
sylvania corporate charter instead Of re-
neWing its articles of limited partnership.
AS no charter can be obtained under
the laws of Pennsylvania under which
all the various departments and interests
of the Carnegie companies can be consol-
idated. it will be necessary to obtain a
charter under the laws of New Jersey,
which will enable the control Of the in
terests concerned wherever situated in
any state or territory Of the Union
essential to concern whose spheres of
operations have grown to embrace the
mines and the markets of the world with
railroads and fleets. something never
contemplated when Pennsylvania re-
stricted laws were adopted.
THE stocks and bonds of the new cor
poration, instead of being offered to the
public, as once contemplated, are taken
by the present owners. themselves, The
year has been agreed to by all the par
ties. and will be adopted, rendering new
negotiations unnecessary, but this is q
matter of no public concern, since no re-
sponsibilities to the public whatever are
incurred. 1t concerns the owners alone
''The new company absorbs the stock
Of the coke company, and thus all Of
the coke company's stockholders become
stockholders of the new concern, 1nclud-
ing Mr.. Frick. whose interest in the steel
company will be thus protected, which
is satisfactory to all parties. the con-
trolling partners expressing no desire to
gain pecuniarily by their recent action
''Mr. Carnegie has given to President c.
M. Schwab his proxy to act as required
and Mr.. Schwab will continue as the
executive head Of the new company"