The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-11-26
SAYS THE MERR|TTS
BROKE THEMSELVES
Rev. F. T. Gates, Chief AL
moner of John u. Rocke-
feller, Issues Statement,
DENIES ALL CHARGES
LeonidaS Merritt Declares
Preacher Is Not Laying Up
Treasures in Heaven" y,
DENIES ALL CHARGES
BY Associated Press,

By Associated Press,
NEW YORK, Nov. 25.-" Not one
EsyllabIe of the words which Leonidas
Merritt put in my mouth was ever ut
tered by me, - declared the Rev. Fred
erick L. Gates, in statement issued
today criticising the testimony given
by Merritt recently before the stan
Icy investigating committee. ''With all
the emphasis ! can command ! wish
to deny in detail these outrageous
charges
After registering his emphatic de
NAL Mr.. Gates continues:
| 81 have further TO say that not one
Of the wrong acts which Leonidas Mer-
rift says Mr.. Rockefeller committcd or
that | committed in his behalf were
ever done by either Mr.. Rockefeller or
me, which both Mr.. Rockefeller aud
officially and in detail eighteen years
ago. 1 need not add that every one of
the Merritts who had made the charges
or had Joined in making them withdrew
the charges over his own signature.
Denial in Detail
"But it wish once more 10 deny
not only in general, but IN detail. these
outrageous charges Of Leonidas Merritt.
! Leonidas Merritt was never invited to
come to New York by Mr. Rockefeller
or his agents.
"Neither Mr.. Rockefeller nor his
agents ever solicited Beonidas Merritt
or anyone else to unite in consoIida-
tion of iron properties. The consolida-
tion was conceived and effected by Mr..
Merritt and his friends without solicl
tation from Mr.. Rockefeller or his Of
flee. Mr.. Rockefeller never made de-
mand or call loan Of any kind TO Leon
idas Merritt or any of the Merritt
brothers. All the loans made by Mr.,
Rockefeller TO the Merritts were time
loans and neither on the dates Of ma
turity nor at any other time did Mr..
Rockefeller ever demand payment of
these loans.
''They were permitted to run on in
definitely. Mr.. Rockefeller was per-
fecty willing to carry them. They
know well that the pressure upon them
came from other creditors of long
standing. not Mr., Rockefeller,
offer Made by Merritts.
Mr.. Gates says that Mr., Rockefeller
accepted an offer from the Merritts IN
February, 1894, to sell 10000 shares of
option 10 ''buy back for one year at
per cent, more than half Of the
stock -
The Merritts. he adds, were so
pleased that two weeks later they
urged Mr. Rockefeller to buy $4,000
shares more at the same price, which
he did fact to which Mr. Gates says
the Merritts "had forgotten TO testi-
fy."
"lf the Mcrritts felt" continues
Mr.. Gates, "that they had made
mistake in selling this stock to Mr..
Rockefeller at $40, why did they not
go into the market, as they could have
done during 1894 and 1895, and recoup
themselves by buying the stock for
less than $40, or why did they not exer-
else their option to- buy back from him
at S107'
Mr.. Gates goes on to say that Mr.
Rockefeller failed to extend the OPP
ton of the Merritts from year to year
because they never asked him. but In
stead began "bascess' suit against
him
Were Only Prospects.
Mr., Gates traces the advance of the
stock. doing So he says, by records of
Mr., RockefelIer's purchases. AS to
reasons for the rise, he declares that
the stock was low in 1898, 1894. 1895
and 1896. because the great mines were
then mining prospects with millions of
hLuHsF Iouuiicu, dpu pccduSe thc use
of the ore was then not adapted to
existing smelters, it being generally
understood that these ores, while, when
developed, they could be cheaply
mined, would be of small value and
could only be little used"
The rise in the stock, be says, was
due 10 the adaptation of furnaces to
the ore because of its chcapness, but
mainly because Mr.. Rockefeller gave
the whole enterprise his financial back
ing, pouring "million after million"
into the mines and railroads and
steamships to carry the ore until 1901,
when he sold out his stock, his ad-
vances amounting call told to nearly
$4,000, ,000,' this sum being apart
from his purchases of stock.
The request to compromise tho Mor-
ritt lawsuit came from Merritt aud not
from Mr.. Rockefeller, Mr.. Gates de
clares.
After referring to the statement
signed by tho Merritts. Mr.. Gates con
cludes.
"Wben they did retract We gave
them $525 900. which S525.000. aided
ia the money previously paid them,
amounting to Sl5 share on all the
stock which they had sold, which was
it's then market price, and amounted
IN substance to an extension for the
option of the two intervening years of
the lawsuit. -
Reply of Merritt.
By Associated Bress
WASHINGTON, Nov 25-'H is not
TO he expected" said Mr.. Merritt. that |
man who made such n proposition 10 |
me did Mr. Gates would admit IL An !