The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1912-01-12
CARNEGIE, HARD
PRESSED, TELLS
some SECRETS
lrOnmaster, Prodded Into ADJ
hitting He Suggested Knox
as Attorney General
Witness Processes Childlike lg-
nOrance of Scope of Sher-
man Anti Trust Law
Excepting Needles, Says Mag
% nate, Tariff on Steel Prod
ucts Is Unnecessary

o ASHINGTON. Jan. 11.-Andrew
M Carnegie, pressed hard today
Wv by members of the house
committee inquiring into the
United States Steel Corporation, ad-
mitted that he. recommended the ap-
spointment of Philander C. Knox, the
present secretary of state, as attorney
. general in McKinley's cabinet in 1901.
8 sKnox having been one of the general
.counsellors for the Carnegie steel
company after 1890. when the Sher-
man antitrust law was passed.
Carnegie repeatedly had declared be-
g fore the committee that he never knew
sthat the participa tion of his company
Gin the steel plate pool and other like
pools was unlawful. and Representa-
tive McGillicuddy of Maine sought TO
show that he had recommended to
President Mckinley the appointment
of Knox after the latter. as counsel
for his company, had left him in ig
norance of the government statutes so
many years.
Protective Tariff Unnecessary
Carnegie also told the committee that
he believed no protective tariff was
necessary on steel rails or steel
&. products. with the exception of needles,
which are not manufactured in this
. country. lie asserted that congress
need have no fear that foreign rails
would flood the United States if the
.tarin were removed
The irenmaster was given an un-
comfortable half hour late in the day
by Representative McGillicuddy. and
lhe is TO be recalled tomorrow. though
ohe urged that he be permitted to con-
clude his testimony today.
Pressed Hard by Representative
You said that you did not know for
many years the scope of the Sherman
antitrust law said McGillicuddy in
beginning his examination of Car
negie. Between the years 1890 and
1900 YOU were the head of the Car
. negie steel company. were you not?r
Il never was its head. not even a
director" Carnegie replied. I was
> the majority stock holder, owning 81
per cent of the stock"
From 1890 until 1900 you had at
'torneys?" McGnlicuddy asked.
The company had attorneys
WAS Philander c. Knox, the present
secretary of state, one of them?"
yes, Mr.. Knox was one of our at
torneys. lie was of the firm of Knox
& Reed. II Reed
Reed was sitting at Carnegie's side.
appearing as his counsel.
. Was Philander C. Knox counsel for
the company between the years 1890
and 1902
ANDY" Gives Whisper
Carnegie whispered TO Reed. and
then answered that he was.
s.. During all that period did Mr.. Knox
or any of your eounselors advise you
of the existence of the Sherman anti
trust law, passed in 1890. and that such
pools as your company participated in
were unlawful?7
= Il never heard a word from any of
othem." Carnegie said. land don't
think they understood that the Sher-
man law had anything to do with our
business. l had heard somewhere of
the Sherman law, but thought it ap-
piled only to railroads"
Wasn't it the duty of your legal
advisers to keep your company advised
as to the laws passed by congress and
the statese" McGillicuddy asked
Averse to Being Bothered
Il suppose that they would consult
with the officials of the company" was
the reply. Il never was an official"
What did you have attorneys for?g
.'Tc appeal to in case of SUITS
Now, Mr.. Carnegie. as principal
owner of the Carnegie Steel company,
for which Philander C. Knox was the
principal attorney would you have ex-
'pected him to inform you about legis-
lation as important as the Sherman
antitrust law?7
NO. sir 1 had no relations with
these gentlemen. was simply a holder
Of stock. Was ]. as such, to be both
cred by these lawyers when 1 had men
TO run the businessgs
Then you were left in absolute ig-
norance as to the effect of the Sherman
law?'
Yes. sir"
Mr.. Carnegie" Representative Nc
Gillicuddy continued. did you recon-
mend to President Mckinley. after his
election in 1900, that this same attor-
ney, Philander c. Knox, who left you
in blissfuI ignorance all those years
appointed attorney general Of the
United States?''
Carnegie looked at his questioner for
q moment in anlazement. He started to