The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-10-31

Duluth, MINI, Oct. 3o.-Alfred Mer-
rift today brought suit against ]. d.
Rockefeller and r. d. Gates, his pri-
vate secretary, for $l,226.4oO, in which
amount he claims he was damaged by
what he alleges to be fraudulent rep
reservations in the forming of the
Lake Superior consolidated iron mines.
Plaintiff claims that at various times
in August, 1893. in New York city, be-
fore he had transferred his interests in
various iron mines and the Meseba
railroad, the defendants represented to
him that the Penokee and Gogeblc
consolidated mines, which, with others
controlled by Rockefeller, was to be
taken into the Lake Superior consoli-
dated iron mines, was solvent and
prosperous company; also the Spanish
American and the Aurora; that their
stocks were well worth what Rookie
Teller was to receive. Mr.. Rockefeller
and Wetmore promised to lend to Mer-
rift on his consolidated stock money at
40 cents on the dollar at par value.
All of these representations and prom
Uses plaintiff claims were fraudulent.
Defendants at the time knew that each
of the companies controlled by Rookie
feiler owed large amounts outside of
their funded debt, and that the Peno-
kee company was at the time insoly-
ent; that instead of making the value
of the Lake Superior Consolidated COM
pany's stock worth so cents on the dol
lar, as Rockefeller promised it would
and he would publish it to the world.
the stock of these other mines caused
its value to decrease to $40 per share
Of 500.
keep his promise and to loan him
money at the rate Of 40 cents on the
dollar and later at Is cents. Rockefeller
refused and would only give 10 cents
on the dollar
In organizing the Lake Superior con-
soiidated mines, the defendant, it is
claimed, got the new company to take
the following interests owned by him:
2S,550 shares Aurora Iron Mining COM
pany's stock; Se5 shares Penokee and
Gogebic consolidated mines; 21.626
shares Spanish-American mines in
Cuba; 300 collateral trust notes Of s.. 600
each OF the Spanish-American COM
pnay, for which the Lake Superior
company turned over first mortga pc
bonds exceeding s1,9OO,0OO. For 81 per
cent interest in the Adams and Lone
Jack mines Rockefeller got consolidat-
ed first mortgage bonds worth over
S1,70O, 600.
Rockefeller represented the interests
which he transferred to be worth s62.
1S0,354, as follows:
Aurora stock. s2OS, 1888; Penokee and
Gogebic, S579,906: trust notes of same
$251, 123; Spanish-American stocks. $500.
1858; mortgage bonds of same. $76. AZ.
1901 shares Minnesota Iron company's
stock, 1926, 4s9.
The agreement showed that Rookie
Teller also controls the following stocks
and securities of companies which he
promised to try to get into the con-
solidation: 72S shares West Superior
Iron and Steel company of par value
OF $72, 500, and $40 first mortgage bonds
of the same at 100000, bringing his
total interests which he intended Ia
transfer up to S4.361, 919
Rockefeller claimed they cost him
s2,7l9,l54 and he was to get lconsoli.
dated bonds worth S3,019, $50 Rr them
at 80 cents. The separate agreements
were entered into before the consoIida.
ton was finally effected. There will
1T is said, be several more suits before
the matter is ended. The CAPITAL OF
the consolidation was at first fixed al
SS,O0O,0OO but later increased tc
$50 000, 900.