The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-01-12
CARNEGIE ADMITS
He NAMED KNOX
Says He Urged Counsel of
Steel Trust for Attorney
General
GIVES VIEWS UPON
CONTROLLING TRUSTS
Government Should Act, He
Tells Committee. But He
Would Not Abolish
MiIlionalres

WARRINGTON, Jan. 1l.--Andrew
Carnegie, former steel king, continued
his story OF high finance before the
Stanley steel committee. His sallies
again kept the audience laughing n,
times. MIR. Carnegie, however. was
most serious when he talked of the
paAsias Of the age OF competition. He
recommended Federal supervision of
largo corporations He also made q
I9ca for kindly consideration of cap
fAins OF finance. who may have in
nocentty violated the law before tine
recent Interpretation of the Sherman
act"
CarneEte's most interesting state
ment. perhaps, was that he had
recommended Phiiander e. Knox. for
ten years an attorney of the Carnegie
Company, ~ attorney general Of the
United States. Mr.. Knox later got
the appointment Knox said Carne-
gie, during all the years he was coun-
sel for the steel company. never men
toned the Sherman law to Andy"
Question by Mr.. McGillieuddy--
After your ten years experience with
an attorney who did not ten you OF
the Sherman law and its provisions,
did you recommend that same attor-
ney. Phifander e. Knox. for attorney
- ,@S
Recommended Mr.. Knox.
Answer by Mr.. Carnegie did
recommend Mr.. Knox MIR. Knox has
no obligation to report to me. He
reported to the company. no doubt.
ouestion--When Mr. Knox went
into the cabinet did not Judge Reeu
fKnox's pArtner) 60 into the direc-
tSfste of the Steel Corporations
Answer by Judge Reed, who acted
A. Mr.. Carnegie's counsel ola.
Question--Do You know what was
your campaign contribution in 1876
Answer oy MI. Carnegie can
recall. have generally contributed to
my party. -
!. NealcQNy shSfWnen Andrew CarneSis,
\ kxg CcunDet ju3ge Hred, und nsssn-
bera Of me Stanley investigating com :
natttee tO-day IN which AIR. carnegie
revealed the hitherto unsuspected iact
that he had assisted In securing TOT
Phtiander e. Knox the position OF
! attorney general In the cabinet OF
President MCKINLEY.
A. Attorney General Knox was
charged with all prosecutions under
the Sherman act. and could enforce
II or not enforce It against the onitea
States Steel Corporation. lie did not
enforce H.
Never Notified Of Pools
dr. Carnegie admitted further that
Knox. when acting as hts attorney,
had never notified Aim that the pools
and agreements that were continually
made BY competing steel companies
we're In violation OF the sherman Jaw.
Thus he possibly sniited the raspoh-
sthtiity for the criminal acts of the
steel Corporation on the shoulders OF
Mr.. Tafts present secretary OF state.
Ar. Carnegie proudly tod OF ms
friendship with President Mckinley,
and said taht he was regular con-
trtbutor TO Republican campaign
FUNDS.
A. Attorney General, Knox brought
the government suit against the
Northern Securities Company and
the ground that it was holding COM
pany In violation OF the sherman Law.
Judge Gary admitted to the Stanley
committee that the Steel Corporation
u Z holding company. but Mr. Knox
did not bring suit for dissolution
against the Steel Corporation.
With the disclosure OF Secretary
Of State knox's former connection
with the Steel Corporation. Chairman
Stanley has shown friendly relations
70 have existed between at least four
great ofiicials OF this government with
the affairs Of the steel trust.
Questions Continues
How DO you account for great In
crease in prof,ts OF the Carnegie Com
p2ny In 1897" asked Representative
ActAtiiicuduy. after he had brought
out the Knox testimony.
Il don't know" said Mr.. Carnegie.
Ibid the DIngiey tariff act have
anything to do with liz" asked Nc
Gtt,lcuddy.
Il cont recall what the tariff was
! said Ar. Carnegie, ssss.@
sss.-eI have iaere reports showing the
profits OF the Carnegie Company
said Mr.. Mc1illicuddy. In 1886 they
4 were S6.000.V00: 1897. 100000: 1898
I IA. 0O0, 900; 1899. S27.ooo.oV0: 1900
\ S4o.00o. 000."
y cannot account for It except our
good fortune. don't think the tarifl
I Id :. s&td Mr.. Carnegie.
My have partnerships In business
/ gone out OF fashion," asked Mr.
y Young.
Men now wish to distribute thetI