Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1912-01-13
STEEL KING NAMES H'KINLEY
Carnegie Recommends Knox for
Attorney General.
HOLDS STEEL TARIFF UNNEEDED
Told Executive of Opinion Prior to
the Buffalo Reciprocity Speech
lis ouI1zed on His Igno-
rance of Law.

Of the house committee 81 inquiry On the
/ United States Steel corporation, admitted
! that he recommended the appointment OF
/ Philander c. Knox. the present secretary
I Of state as attorney general In President
I McKinley's cabinet In 1901 MIR, Knox
having been one Of the chief councillors
/ for the Carnegie Steel company siHce 1880.
when the sherman antitrust law was
passed.
| Mr.. Carnegie repeatedly asd declared
before the committee that he never Knew
/ that the participation of his company 10
the steel plate pool and other like pools
was unlawful and Representative Me
/ GHllcuddy OF Maine sought to show that
he had recommended TO President Nc
Kinley the appointment Of Mr.. Knox after
the latter. as counsel for his company.
had left him In ignorance Of the govern
ment statutes so many years.
Protection Unnecessary.
Mr.. Carnegie also told the committee
that he believed no protective tarift was
necessary on steel rails or steel products
With the exception Of needles, which are
not manufactured In this country He as
serted that congress need have no fear
that foreign rails would flood the United
States u the tariff were removed.
The iron master was given an uncom-
fortab,e half hour late In the day by
Representative McGillioaddy and be Is to
he recalled tomorrow, though he urged
that he be permitted TO conclude his tesu'
mony today.
.you said that you did not know for
many years the scope OF the sherman
antl-trust law" said Mr.. McGillcuddy In
beginning his examination OF Mr.
Carnegie.
Between the years 1870 and 1900 you
were the head Of the Carnegie Steel com
rany were you notg''
Il never was at its head, not even g
director" Mr.. Carnegie replied. II wa'
the majority stakeholder. owning "A pei
cent OF the stock"
From 1850 until 1870 You had attcr'
neysr" Mr.. MeGinieuddy asked.
The company had attorneys
WAS Phllander e. Knox, the present
secretary of state one OF themT
YES, Mr.. Knox was one OF our attor
neys. He was Of the firm OF Knox q
Reed-J. II. Reed. Ez-5
Mr.. Reed was sitting at Mr. carnegie'i
side, appearing as his counsel at the In
} quiry. -.
was PhIlander C. Knox counsel for TN
company between the years isso and 1897
Mr.. Carnegie whispered TO Mr.. Rec
and then answered that he was.
Not Advised as TO Law.
During all that period did Mr.. kno'
or any Of your counsellors ever advis
you Of the existence Of the sherman anti
trust law, passed In iss0, and that pools
such as your company participated In
were unlawful
II never heard a word from any o
!, them" Mr.. Carnegie said, ''and don
think they understood that the shermai
! law had anything 10 do with our business
|. | had heard somewhere OF the shsrma
, law. but thought II applied only to rail
ways"
wasn't IL the duty of your lega
advisers to keep your company advise
as to the laws passed by congress- an
|. the statsss'' Mr.. McGllllcuddy asked.
Il suppose that they would consult wit
the officials OF the company was III
reply. II never was an official"
awhat did you have attorneys for?"
ITO appeal 10 In case Of suits"
Now, MIR. Carnegie. as principal owne
Of the Carnegie Steel company for whic
phllander C. Knox was the principal al
torney, wouldn't you have expected hlr
!. 10 inform you about legislation as In
. portant as the Sherman antitrust law7
!. mo sir, had no relations with thes
gentlemen. was simply a holder q
stock Was 1, as such to be bothered b
!. these lawyers, when had men to ri
n the business for me2"
"Then YOU were left in absolute ignol
ance as to the effect Of the sherma
: law"
= Eyes, sir
d Recommended appointment.
4 mfr. Carnegie" Representative MI
,Gmleuddy continued, did you recommen
to President Mckinley. after his electlo
in 1900 that this same attorney, Phlland'
{. Knox. who left you In bissful lgno
G anee ali those years about the effect /,
e the Sherman Law. be appointed attornt
5 general OF the United States
C Mr.. Carnegie looked ~ MS question:
d for moment IN ahhANeiheht' lie stsrts
u "
Y IN, t...s.,.a,,
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C ~ ~ NJ ,,.s ra,,,tsI'
z -. go, - = ,o,,nr - ,ho nru,
r d.,,, ahs,,,, I.nox,s anfotrt,,s,,,
r ..vav, NJ csrragIe " Mr. ucciIIjc,,a,
Ie man, a., ...tt.r ten wars. sxpsrispcs nj
A ~, a,,,v,,s,, vvbo atd nat ia, 20, In,
:, -, ,hs Iaws Of which van o,,yh,
K avs kpowp vou recommended him as
,ropsr and IN man for attorney reu.r
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