The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-01-12
Recommended Him as
Acknowledgement to
Mckinley.
HAD BEEN COUNSEL,
FOR HIS COMPANY
Makes Admission When Hard
Pressed by Investigating Com
mittee, and After Declaring
He Had Been Left in
Ignorance of Sherman
Antitrust Law.

Carnegie, pressed hard to-day by menu
CURRY into the United States steel cor
poration. admitted that he recon-
mcndcd the appointment OF Philandcr
c. Knox, the present Secretary Of
State. as Acknowledgement In Pres
ident McEiEiey's Cabinet In 1901, Mr..
Knox having been one OF the chief
counseiors for the Carnegie steel
Company since 1890. when the Shcr-
man antitrust law was passed.
Mr.. Carnegie repeatedly had declared
before the committee that he never
knew that the participation of his conf
pany In the steel plate pool and other
like pools was unlawful. and Repre-
sentative McGillicuddy, of Maine.
sought to show that he had recon-
mended to President Mckinley the APP
pointment of MIR. Knox after the lat
ter, as counsel for his company. had
. left him in ignorance OF the govern
ment statutes so many years.
Mr.. Carnegie also told the commit
tee that he believed no protective tarim
was necessary 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
would flood the United States il the
tariff were removed.
Iron Master Pressed Hnrd.
The Iron master was given an un-
comfortable half hour late in the day
by Representative McGilIicuddy, and
ne is to be recalled again to- morrow
though he urged that he be permitted
to conclude his testimony to-day.
You said that you did not know
for many years the scope of the Sher-
man antitrust law?" said Mr.. Nc
Gillicuddy. Between the years 1890
and 1900 you were the head OF the
Carnegie Steel Company. were You
not?"
Il never was at its head. not even a
director" Mr. Carnegie replied
I was the majority stockholder,
owning "a per cent. of the stock
From 1850 until 1900 you had at
torneys?" Mr.. Gilicuddy 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
G. Reed. II. Reed"
Mr.. Reed was sitting at Mr.. Car
negss's side, apbpearing as his counsel
at the Inquiry
WAS Phflander C. Knox counsel for
the company between the years 1890
and l20O?"
Mr. Carnegie whispered to Mr. Reed
and then answered that he was.
During all that period did Mr..
Knox or any of your counselors ever
advise You OF the existence OF the
Sherman antitrust law passed in 1880.
and that pools such as your company
participated In were unlawful?"
Il never heard word from, any OF
them" said Mr.. Carnegie. land I don't
think they understood that the Sher-
man law had anything 70 do with our
business ] had heard somewhere OF
the Sherman law. but thought 1t APP
piled only to railways"
Wasn't 1t the duty OF your legal adj
Visers to keep your company advised
as to the laws passed by Congress- and
the States?" asked Mr.. McGillicuddy.
Never an omciaI.
~ supposed that they would consult
with the officials of tho company,"
was the reply. Il never was an OIL
ciaI."
What did you have attorneys for?"
TO appeal TO in case OF suits" was
the reply.
Nov. ar. Carnegie. as principal
owner of the Carnegie Steel Company.
for which I<hiiander c. Knox was the
principal attorney wouldn't you have
expected him to inform you abou,
legislation as Important as the Sher-
man antitrust law"
NO sir. had no relations with
these gentlemen. 7 was simply u hold
CT OF stock. Was L as such to be
bothered by these lawyers when had
men to run the business for mc?"
Then You were left in absolute
ignorance as to the effect Of the Shcr-
man law?"
Yes. sir"
Mr.. Carnegie" Representative Nc
Gillicuddy continued. did you recon-
mend to President Mckinley after his
election in 1900 that this same at
torney. Philandcr C. Knox, who lef,
you in blissful ignorance all these
years about the effect Of the Sherman
law. be appointed Attorney General OF
the United States?"
MIR. Carnegie looked at his qiestioner
Tor moment in Amusement. Ac start
ed to speak and then. turning suddenly
to Attorney Reed, he excIaimed: "Did
!, judge"
Mr. Reed, almost In a whisper, and
with smile on MS face. replied:
Yes. you wrote letter to the Presi-
dent about Knox's appointment"
Now, Mr.. Carnegie" Mr.. Mcoilli-
euddy went on, after ten years en-
perience with that attorney, who didn't
let You know, about the laws Won ought
to have known. you recommend him
as proper and fit MAN for Attorney
General of the United States3
Objects to Form of Question,
Yes. did," he replied, but I OBJ
Ject to the form Of your question.
You ask after had experience.
had no experience with Mr.. Knox so
far as the corporation was concerned.
Mr.. Knox had no official relations with
me-
about the same time that Mr.. Knox
- ICantinned or, ] nrh I'd Ia -.