The times. [volume] (Washington [D.C.]) 1897-1901, 1900-02-16
THE SUIT AGAINST CARNEGIE.
His Differences with Prick Date
Several Years Back.

Several Years Back.
PiTTSBURG. Pa, Feb. f5.-Now that
H. c. Frick has begun his lawsuit against
Andrew Carnegie il seems strange to
fi,tsourgers that it is only a few weeks
ago that Mr.. Frick resigned from the
chairmanship OF the board OF managers Of
the Carnegie Steel Company. Limited. and
that the public FIRST learned there was
friction in the company
To the majority of business men u the
country it seemed that the efforts of .he
partners OF Mr.. Carnegie to purchase bis
interest in the company were probably the
cause OF the differences between the steel
magnate and his right hand man.
The story Of the first sign of strain
in the relations between Mr.. Frlck and
Mr.. Carnegie has not been told In print
before. 1t happened some years ago at
the time the coke syndicate was In opera
ton. Mr.. Frick had organized with Mr..
Carnegie the II. c. Frick Coke Company,
Mr.. Carnegie holding controlling interest.
Mr. Frick became the official head of the
toke concern. He and the managers of
rival coke companies had formed a syndi-
cate which regulated the price Of coke.
One day they were in session and had Just
agreed upon the prices to be charged fn-
the ensuing month, when John Walker.
Mr.. Carnegies 'right-hand'' man, APP
peared. He and Mr.. Frick were not friends,
and so the latter looked up when Mr..
Walker entered and said. coldly:
Mr.. Walker, are you aware that this
is private meeting OF business men?''
on, ! know that" replied Mr. Walker.
but don't suppose you will object to tell
ing me the price that coke is to sell at, will
you? You know my company uses a good
deal of it,
Mr.. Friek made 10 response. but one OF
the others told Mr.. Walker that the price
was $3.50 per ton.
I'm sorry" said Walker. but Andy
Carnegie says that the price which the
Fl. C. Frick Coke Company will charge,
beginning tomorrow Is s1.15."
There was a moments silence after Mr..
Walkers departure and then Mr.. Frick
resigned the presidency of the coke syn
aicate, remarking:
Gentlemen, have nothing else to say.
You have just heard what the worthy rep
resentative of the majority stockholders
in the II. C. Prick Coke Company said
Mr.. Prick promptly went 20 Europe and
returned only when Mr.. Carnegie sent
friend after him and apologized. This hap
pened in 1854. While Mr.. Frick later
gained his fullest prominence In the Carne-
gle Steel Company. it Is believed that he
never forgot this incident. although he
may have forgiven it.
The Homestead strike came on a few
years later Mr. Frick acted as the official
head of the company and conducted the
campaign against the strikers. although
many believed that he was only carrying
out Mr. Carnegie's orders. He and Mr..
Carnegie have often disagreed as to the
policy OF the company. and although the
divergence in their views may have been
only natural it is nevertheless likely that
Mr. Frick chafed under the necessity OF
obeying Mr.. Carnegies orders while Off
sially answerable for their results.
Everybody remembers the sensation that
was made when the Carnegie Company was
fined by Grover Clevelands Adminlstra-
ton FOR furnishing inferior armor plate.
Shortly afterward Mr.. Carnegie came out In
IN interview or letter practically advocat-
ng the abolition OF the protective tariff. or
1t least saying that II was no longer need
I'd for the benefit of the iron and steel
rade. Mr.. Frick thought this an impoitic
let.
Nearly two years ago Mr.. Carnegie at
ended the dedication OF the Carnegie Ii
orary at Braddock and made a speech
he said he and his wife had always deeply
,eplored the Homestead strike, This and
;ome other remarks Interpreted as mean
ng that Mr.. Carnegie himself was not re-
ponsible for the policy pursued by his COM
ANY. Although some public praise ac-
,orded to Mr.. Prick year or so before
he Braddock speech was sufficient proof
hat he had no desire to throw on Mr.. Frick
ne responsibility for the strike. yet Mr..
trick thought it is said, that the reference
4 the Braddock speech might better have
,een left unsaid.
Whether or not Mr.. Friek Is in favor Of
iational expansion is not known publicly
rom any of his utterances. but his friends
10 say that he was displeased when Mr..
started out on his campaign
Igainst imperialism" Recognizing that
lobody could dispute Mr.. Carnegie the right
o his own opinions. Mr.. Frick. neverthe-
ess, believed that the constant enuncia-
ion of these opinions in a way that would
offend Mr.. McKinley's Admins
ration was bad policy toward one OF the
ompsnys best customers, the United
;tates.
1t will be observed that hitherto what
yer strain the relations OF the two men
Underwent had been caused by Mr.. Car
legie. The end came when Mr.. Frick be-
anne the offender. Mr.. Frick and some Of
he other partners in conjunction with
Judge Moore. of Chicago paid Carnegie
more than 900 for an option on Car
egies stock in the company. they agree
ng to pay him over 1851. 100000.
The new company proposed could not
e organized at that time, and Judge
Ioore abandoned mis- efforts, and Mr..
rick and Andrew Mellon. Pittsburg
apitallst went over to Scotland, where
hey interviewed Mr.. Carnegie with
lew to securing an extension OF the
ption The value OF his interest. Mr. Car
egie replied had increased S2O,OO0OO0
ince the option was first granted, and
Or another $1,000 000 in cash or good Sc
urities an agreement to pay him s177.-
90. 600 for his interest. he would renew
he option.
Mr.. Carnegie had not been anxious, but
as willing to sell. The failure Of the
cheme displeased him for two reasons.
ne because the money was not forth
oming. the other because the failure, SO
seemed TO him. would injure the Car
egie Steel Company. This was. in part,
lie reason Mr.. Frick says in his bill in
putty. that caused Carnegie to cherish
ersonal animosity toward him. Other
sasons. he says will be told in the testi-
lony.