New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-11-24
TELLS OF HIS ORE DEALS
Praise Also for Rev. Mr., Gates
in RoCkefeIler'S Book.
TROUBLED INVESTMENTS"
Engineer Contradicts Own Testi-
mony That Murray Ordered
Him to Pad" Report.

Him to Pad" Report.
John -. Rockefelier's story of his aCqnis-
! ition OF the Mesaba iron ore fields was to'd
Two years ago in his book, Random
Hemniscenoes Of Men and Events Part
Of the long narrative is devoted to preach
monts and advice to young men; part OF
it is set aside for praise for the Rev.
/ Frederick r. Gates, his friend and agen''
and the remainder tells Of ore land deals
Nj Rockefeller says in his book
| Going into the iron ore fields was one OF
/ those experiences In which one hnds one ;
self rather against the will, for II was NOT
/ a deliberate plan Of mine 10 eAlend my
| cares and responsibilities. Ny connection
with iron ore came about through some
unfortunate investments IA the Northwest
country.
| These interests had included a good many
/ different industries mines, STEEL mills
/ paper mills, a nail factory, railroads, ium-
/ her fields smelling properties ana DINER
investments about which ! nave now toI-
I gotten. ! was minority stockhoder iii
1 all these enterprises and had no part IN
their management. Not all of Them were
profitable.
Mr. Rockefeller SAYS he had not seen
many of the properties, instead getting
I Others TO inspect them for him. AT Ibis
1 time he wanted 80 shift his business cares,
he SAYS but The panic interfered. Luckily,
he adds, he met The Rev. Mir Gates, WHO
was then travelling the entire country for
the American Baptist Education Society.
! Mr. Rockefeller was pleased with the
| preacher and says;
n occurred To- me that Mr.. Gates, " no
! had a great store of common sense, though
no especial technical education about rae
/ tories and mills, might aid me m securing
4 fret hon inf fICn "a
! these concerns were actually prospeflhs'
Then lie takes up the subject of the ore
minos, which ne calls Our troubled invest
mfnts,' saying:
( 1t has been our policy never ia allow a
company in which We had an interest TO
/ be thrown into the bankruptcy court II We
could prevent Il. our plan has been To stay
with the institution, nurse II, lend II money
4 when necessary, improve facilities, cheaper
production ana avail ourselves OF the OPP
pCtunties which time and patience are
/ lkoly ~ bring 10 make II seli-sustainins
ana successful
/ So we went carefully through the affairs
Of these crippled enterprises in the hard
! times Of 1888 and 1884, carrying many Ut
them for wears after, sometimes buying the
| interests of others ana sometimes selllnS
our own interests hut ali OF nearly all es-
capped the expenses and humiliation OF
hankruptcE, receiyeiahip and foreclosure
Among these investments were some
shares i'm a number of ore mines and an
/ interest ip the stocks and bonds Of a rail-
road being built to carry the ore from the
! mines 20 lake ports We had great faith
IN these mines. but to work them the rail-
read was necessary. II had been begun,
hut in the panic of 1898 il and all other de-
VClOpments We're nearly ruined Although
We were minority holders OF the stock, il
Sc med 10 be ''up TO US 20 keen the enter
prise alive through tho narrowing panic
days.
! had 10 loan my personal securities 10
"a, q II 4
10 supply great deal Of actual cash. and
10 got II We were Obliged TO 20 into the
then greatly upset money market and buy
currency a high premiums TO shin West
bl express 20 pay the lebnrers on the rail
~ ad and keen them alive.
When IN" fright of the panic period sub
SIDED ana matters became little more set
iled we began 10 realize our situation. We
Had invested manN millions and no enc
wanted IN go IN with us TO buy stock on
the contrary, everybody else seemed To-
want to sell. The stock was offered 10 us
m alarming quantities substantially all Of
the capital stock Of the companies came
without any solicitation ON our rart-quite
the cohtrarN-and We paid for u i'm cash
They supplied ore under the presidential
guidance Of AIR Gates, who learned the
business and really mastered the various
complexities until the United States Steel
Corporation bought the land, ore and fleet
of ships at a very moderate" price Mr.
Rockefeller saws Then he went out Of the
ore business.
An engineer Charles II. Martz, testified
before the Stanley committee on Tuesday
that George Wellwood Murray. Rookie
fellcT's counsel, had urged him in 1898 To
pad a report 10 the Minnesota Railroad
commission Under cross-eNaminatiOn by
various members Of the committee tie
witness dfterNard stated that AIR. MURRAY
did not direct him To make any entry on
the record at all; nor did he nave anything
To do with padding Following are eE-
I hearing covering Martz's testimony on this
point. First, the direct testimony:
The Chairman What instruction old YOU
get with reference 10 that report and from
whom?
Mr.. Martz-I got instruction to go ahead
and make the report; that the State RAIL
way ana Warehouse Commission for The
state OF Minnesota was suing the road fer
a reduction Of ore rates.
The Chairnan-Did they make any sug-
sessions To You about what the sum total
Of the cost Of the road should be?
Mr.. Martz-Nes, sir
The Chairman Well, what did they tell
YOU they wanted you TO make il cost-this
million and half dollar road?
Mr.. AartZ-Thfy told me IN would he
necessary 10 make a showing that the cost
of the road WAS S,0J,Oj0
The Chairman Who told you TO do that?
Mr.. Martz-Mr Rockefellers counsel
/ The Cbairman-WhO was the counsel at
that time?
Mr. Martz MIR. George Wellwood Muir
ray.
The Chairman Did you So report? Could
! you make IL cost that much?
Mr.. Martz-No, sir
The Chairman-Dd YOU try your best?
Mr.. Martz-Wen, l worked it over several
! times
The Chairman After you failed Ia make
| this road cost S5,Ooj0D, how long did you
/ hold your lob?
/ Mr.. Mart2-AbOut one year
However on cross-eXaminauon, Martz
testified:
Mr.. I.ttleton-Did Mr.. Murray direct YOU
{ 10 make any entry on this report al ali?
Mt. Martz-NO sir
Mr.. LttletOn-Did ne have anything to
| do with what has baen called the padding
! OF this report?
NT. MdrtZ-NO, sir.
/ Mr. liitlci0n-Did nybody else who was
| a member of the bar have anything To- do
/ with this padding, outside Of Mr.. Cotton
! MIR. MariZ-NO. sir.
Mr.. Littleton-Th., was Joseph r.. Cot
/ ton?
/ Ar. MaTtz-Yes, sir.
Mr.. GardneT-SOmc Of the newspaper men
I am right I'm saying that YOU now testify
that was under Mir. Joseph y. Cotton that
YOU prepared these figures. and not under
Mr. Murray
Mr.. Martz-Hes sir; that is correct
CAPTAIN CHAS. e, HAY, JRy DEAD.
WatertoWu, y. y NOV q. - Captain
Charles T.. Hay, IT,, 9th Infantry, died