The Birmingham age-herald., 1912-01-12
Iron Master Given UncOm- f0rtable Half Hour by
 McGill
HE WILL CONTINUE
 TESTIMONY TODAY
Believes No Protective Tariff Is Necessary on Steel Rails or Steel Products With the Excep-
 ton of Needles


 pointment of Philander c. Knox, the pres ent Secretary of State, as Attorney Gen eral in President McKineys cabinet in 1901. MT. Knox having been one of the chief councillors for the Carnegie Steel company since 1890, when the sherman antitrust law was passed.
 Mir Carnegie repeatedly had declared before the committee he never knew or fhe participation of his company in the steel plate pool and other like pools was unlawful, and Representative McGih Of Maine sought to show that he had recom- mended to President Mckinley the ap- pointment of MT. Knox after the latter, as counsel for his company. had left him in ignorance of the government statute so, many years.
 MT Carnegie also told the committee he believed DO protective tariff was nee essary on steel rails or steel products with the exception of needles that are not manufactured in this country. He asserted that Congress need have no fear that foreign rails will flood the United States if the tariff were removed. N
 The iron master was given an uncom- fortable half hour late in the day by Representative McGill and he is to be recalled again tomorrow, though he urged that he be permitted to conclude his testimony today.
 McGilrs Questions
 You said that you did not know for many years the scope of the Sherman antitrust law" said MT. McGill. Be tween the years 1890 and 1900 you were the head of the Carnegie Steel company. were you not?'
 'I was never at its head, not even director" MT. Carnegie said. "I was the majority stockholder, owning 54 per cent of the stock"
 From 1890 until 1900 you had attor- neys?" MT. McGill asked. 'The company had attorneys
 Was Philander c. Knox, the present Secretary of State, one of them?"
 "Yes, MT. Knox was of the firm of Knox $. Reed--J. H. Reed MT Ea@s ws:x- sit tysr, MT. ..ax pegie's side acting as his counsel v the inquiry
 Was Philander c. Knox counsel for the company between the years 1890 and 1900?'
 MT. Carnegie whis cred to MT. Reed and then answered that he was.
 During all that period, did MT. Knox or any of your counsellors ever advise you of the existence of the sherman antitrust law, passed in 1890, and that pools such as your company participated in were unlawful?'
 T never heard word from any of them,' said MT. Carnegie, and l don't think they understood that the Sher- man law had anything to do with our business I had heard somewhat, of "a rt11a thought D. piled only to railways"
 Wasn't is the duty of your attor- neys to keep your company advised as to the laws passed by Congress and the states?' MT. McGill asked.
 q suppose they would consult with Ahe officials of the company" was the reply. T never was an official
 What did you have attorneys for?'
 ITO appeal to in case of suits" was the reply.
 Now, MT. Carnegie, as principal own CT of the Carnegie Steel company, of which you say Philander c. Knox was the attorney, wouldn't you have ex- pected him to inform you about legis- 1ation as important as the sherman antitrust law?v
 No sir. I had no relations with these gentlemen. I was simply hold CT of stock Was I, as such, to be bothered by these lawyers when l had
 
 Then you were left in absolute ig porance as to the..effect of the Sher- man law?'
 "Yes sir"
 MT. Carnegie," Representative Mc- Gill said. did you recommend to Presi- dent Mckinley that this same attorney, Phiander c. Knox, who left you in ig- norance all those years about the ef- feet of the Sherman law. be appointed Attorney Generai?''i
 Mir. Carnegie looked at his questioner for a moment in amazement. He started to speak and then, turning sud- denly to Attorney Reed. he exclaimed:
 Did I, Judge?'
 MT. Reed almost in a whisper and with a smile on his face, replied: "Yes, you wrote letter to the President about Enox's appointment
 Now, Mir Carnegie, ''Mr. McGil went on, after ten years experience with that attorney who did not let you know about fhe laws you ought to have known about, you recommend him for Attorney General of the United States
 Recommended Knox
 "Yes, I did," he replied. but l object 10 the form of your question. You ask, after I had experienced I had no. ex- perience with MT. Knox so far as the corporation was concerned. MT. Knox had no official relations with me-
 About the same time MT. Knox went into the Presidents cabinet did his part ner, Mir Reed, go into the directorate of the United States Steel corporations" 1Ir McGill asked.
 MT. Reed, appealed to by his client, re- piled that he did.
 Before the iron master was quizzed as 10 his views on the tariff several mem bers of the committee heckled him about tho ignorance of his partners and him self about the laws.
 Don't you think it rather unusual" '" Representative Beall asked, that so many of these great business men were ignorant of the laws?"
 No"
 -., 'Now, don't you believe that some men bn the Carnegie company knew they were Violating the law?'
 'Now, MT. Beall, when you say that can see in your face an irresistible smie,' MT Carnegie replied.
 T see you are smiling. too' the leg lelator answered.
 "Yes. let's smile together, you with me- ''But not be villain still,' MT. Beall eetorted.
 When asked if he did not think the gov ornment regulation which he recommend cd was bordering dangerously on social ism, Mir. Carnegie declared that social ism had no terrors for him.
 My motto is,' he said. that all Is
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