New-York tribune., 1912-01-12
Present Secretary of State One
of His Counsel Before He En-
tered Mckinley Cabinet
as Attorney General.
NOT TOLD OF SHERMAN LAW
Knox, However, Officials Point
Out, Owed Appointment to Close
Friendship with Mckinley
Steel Needs No Protection,
Carnegie Tells Committee.
From The Tribune Bureau. ]


heated session yet held by the STANLEY
steel investigating committee, Andrew
Carnegie testified to-day that he hao
recommended the appointment OF Phllah-
der c. Knox, former attorney Tor the
Carnegie company. as Attorney General'
that neither Mr.. Knox nor any other at
torney had ever talked to the ironmaster
about the Sherman law, and finally that
the day of active competition in big
business had passed Mr. Carnegie ad-
yocated an industrial commission 10 con
troll prices.
II is pointed out by those Conversant
with the circumstances of Mr.. knoNs
entry into the Mckinley Cabinet that the
impression produced by the testimony OF
Mr.. Carnegie is not an accurate one. AS
a matter of fact, President MCkinley's
desire 10 have Mr.. KroX as his Attorney
General was based on a close friendship
of twenty-five years standing. AS Is
generally known. the appointment was
offered to him in February. 1877, ana
was refused. Four years later, l"I'
when Mr.. Knox was in Santa Barbara
the place was again offered to him, ana
he finally accepted.
The ironmasuer had tits with two
members of the committee, because, as
they alleged, he was lodging all inter-
esting questions He was heckled by
Representative MCGillicuddy, of Maine,
Democrat who in the examination con-
cerning the Knox Endorsement banged
the table and told the gray haired wit
ness that h was tired of all this non
sense and wanted facts" Earlier in the
day Representative Gardner, minority
member of the committee, had become
vexed because Mr.. Carnegie refused to
commit himself on the question of
reasonable" price for steel rails
Democrats Seek Political Capital.
Making much of Mr.. Carnegie's state
mont that he. had suggested Mr.. Knox,
who had been his counsel, for place in
the Mckinley Cabinet. Democratic mem
bers of the committee proceeded next TO
the subject of the tariff. Mr.. McGilli- !
cuddy attempted to make Mr.. Carnegie |
say that the Dingey bill was the cause |
Of the jump in the Carnegie compar''s
profits.
This line of questioning will necessi- |
tate a long examination" interrupted
Representative Gardner. The other
side of this political issue will have 10 be
gone into if you persist, Mr.. McGiili-
cuddy. l shall have to ask the witness
If the Democrats had not been in control
just before this time, and if business and
profits were not bad in consequence. We
have been burdening the record long
enough without information"
I'VE have been getting lots Of informa
ton" retorted Mr.. McGillicuddy, al
though it may not be good information
from your standpoint"
Mr.. McGnlicuddy then quizzed Mr..
Carnegie about his campaign contribu-
tions, to which counsel objected. Chair
man Stanley overruled the objection and
Mr.. Gardner appealed. Not wanting TO
have a row in open session, Mr.. McGilli-
cuddy withdrew his question concerning
Mr.. Carnegies personal campaign con-
tributions.
The ironmaster, who tried to appear
calm in the storms in the committee
room, said his contributions were made
for personal and not business reasons.
We didn't need the protective tariff,
said Mr.. Carnegie. He explained his ad-
vocacy of free trade or a very low tariff
on steel, adding that my dear late
friend, steve Elkins, felt the same way
about the tariff on steel. and we were
abused by The New York Tribune be-
cause we wanted to lower the steel
duties"
Carnegie Tells Of Knox Endorsement.
Democratic members wanted to know
why Mr. Knox had not mentioned the
Sherman law while he was attorney for
ten years for the Carnegie companies.
Why should he mention it to me?
Why tell me that the Sherman law mad
passed? l was just a stockholder." said
Mr.. Carnegie, blandly
"Phiander c. Knox was one of the at
torneys of the Carnegie company from
1880 &c 1902 asked Mr. IcGnllcuddy.
Yes, 1t was the firm Of Knox & Reed"
said Mr. Carnegie
And during all that time neither
member Of the firm advised YOU concern
ing the effect Of the Sherman law on
your business"
Il don't think they knew about jts cf
fest on the business" innocentlv as
serted Mr.. Carnegie. while laughter
swept the room.
Wasn't it their duty to tell the COM
pany?''
i am not here to say what any mans
duty is" snapped the sprightly witness
We had attorneys 10 give advice when
they were asked for it. Why was | =
be bothered by Mr.. Knox or anybody
else about the Sherman law? was Just
q private 5tockholder."
You recommended Mr.. Knox for the
position Of Attorney General?' persisted
the Maine member
Mr., Carnegie looked at his questloner
for moment In amazement. He started
TO speak, and then turning suddenly 70
Mr. Reed he exclaimed: Did !, judge?"
Mr. Reed almost In a whisper and
with smile on his face, replied:
Yes; you wrote a letter to the Presi-
dent about Knox's appointment"
Had No Official Relations with Krox.
Now, Mr.. Carnegie" Mr.. McGini-
cuddy went on, after ten years expert
ence with that attorney who didn't let
you know about the laws you ought to