The Sentinel=record., 1912-01-12
CARNEGIE IN
 TIGHT PLACE
FORMER IRON MASTER IS CLOSE " QUESTIONED AS TO HIS
 POLITICAL ACTIVITIES.
Recommended Philander C. Knox as Attorney General in the Mckinley cabinet--Mantains lgnor-
 ance of Sherman Law.

Washington, D. C., Jan. ll.--An- drew Carnegie pressed hard today by members of the house steel inves- tigating committee, admitted he re- commended the appointment of Phil ander C. Knox, the present secretary Of state as attorney general, in Pres ident Mckinley's cabinet in 1901, MT Knox having been one of the chief counsellors for the Carnegie Steel I Company since 1890 when the Sher- man antitrust law was passed.
 MT Carnegie repeatedly had declar- ed before the committee he never knew of the participation of his com pany in the steel plate pool and other like pools, which was unlawful and representative McGillicuddy of Maine sought to show that he had recom- mended to President Mckinley the appointment of Mir. Knox. after the latter, as counsel for his company, had left him in ignorance of the 1 government statutes so many years. MT. Camegie also told the commit tee he believed protective tariff was necessary on steel rails or steel pro- ducts, with the exception of needles that are not manufactured in this country.
 He said congress need have no fears that foreign rails would flood this country. if the tariff were removed.
 The iron master was given an un. comfortable half hour late in the day by Representative McGillieuddy and he is to be recalled again tomor rom. though he urged that he be per. mitted to conclude his testimony to day.
 You say that you did not know for many years the scope of the Sher- man antitrust law?-' said MT McGiIIi- cuddy in beginning this examination of Mir. Carnegie.
 Between the years 1890 and 1900 you were the head of the Carnegie Steel Company were you not?'
 T never was at its head. not eveh a director" Mir. Carnegie replied q was the majority stockholder. owning 54 per cent of the stock,
 From 1890 to 1900 you had attor neys?, MT. McGillicuddy' asked.
 "The company had attorneys.''
 Was Philander O. Knox, the pres ent secretary of state. one of them ?"
 FYes, Mir. Knox. Of the firm Of Knox and Reed--J. H. Reed.'
 MT. Reed was sitting at MT. Carne- gie's side acting as his counsel at the inquiry.
 Was Philander Knox counsel for the company betwees the years 1890 and 1s0O?y
 Mir. Carnegie whispered to Mir. Reed and then answered that he was.
 ''During all that period did MT. Knox or any of your counsellors ever ad- wise yon of the existence of the sherman antitrust law, passed in 1890 and that pools such as your company participated in. ware un- awful?''
 'I never heard word from any of them" said Mir. Carnegie, "and don't think they understood that the Sherman law had anything to do with lour business. I had heard some Of the Sherman law. but thouaht 1t ap. piled only to railways '
 Wasn't 1t the duty of your legal ad. visers to keep our company advised as to the laws passed by congress and the tates?" Mir. McGillicuddy asked
 q suppose they would consult with the officials of the company" was the reply. T never was an official. 2
 "what did you have attorneys for?"
 TO appeal to in case of suits." was the reply.
 Now, Mr. Carnegie, as principal owner of the Carnegie Steel Compa- ny. for which Philander c. Knox was the principal attorney wouldn't you have expected him to inform you about legislation as important as the Sherman antitrust law7''
 ''No sir, had no relations with 4 l these gentlemen. was simply a hold | CT Of stock. Was. I. as such, to De 'bothered by these lawyers, when