My recollection is that Olbermann had an article somewhere about it, and had language from an old issue of TSN about it. My understanding is that Wagner wanted compensation, or more compensation, and American Litho decided to not pay more, halting production of his cards instead.
This is talks a bit about it, down in there a ways...
http://www.baseball-almanac.com/trea...utont005.shtml
This has a bit more.... Although this article is incorrect about there being 54 major leaguers and 76 Hall of Famers...
http://en.wikipedia.org/wiki/Honus_Wagner