Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-11-22


raise money and that they never hal
!, taken advantage of the opportunity t.
purchase within year Anothei
brother. Mr.. Reid declared. had re-
deemed his stock and secured his Pre-
rata share at 5000 per share when i
was taken over at the time of the or
ganization of the United States Steel
Corporation. ;.
The introduction of Mr.. Rockefeller;
name in this manner almost resulted il
the issuance of a subpoena duces tecun
! for him to appear before the committed
&, with the contract made at the time OF
I the Merritt loans. Rep. Beall of Texas
| moved that this be done. No objections
were heard when Chairman Stanley put
! tile motion. but the committee decided
1 later in executive session not TO call MIR
1 Rockefeller until Leonidas Merritt ha6
testified
The Merrftts were first parties to q
! transaction with Mr. Rockefeller and
others in the formation of the Lake SUI
! perior Consolidated Iron Mines. In this
i the mines of the region and the Duluth
Messabe & Northern were consolidated,
| Out of this suit by the Merritts against
| Rockefeller developed on the ground OF
| Misrepresentation of the value of mining
| properties turned in by the Rockefeller
| interests. subsequently Rockefeller paid
| the merritts $4,000 in settlement. Be
| fore this settlement and after he had
lost his stoekholdlng and ceased TO be
president of the railroad, Merritt testi-
fled that +. H. Gates came to him and
said Mr. Rockefeller wanted him TO con-
tinue as president of the road for an
other year.
WAS that the Baptist preacher Gates
who came to your" asked Chairman
Stanley
Yes" Merritt replied. 'IIe said Mr..
Rockefeller had confidence in me and
knew that / through my acquaintance
with the boys on the range, would be
able to get more shipping business than
true"
1.-THE Rev. DIR. Gates seemed TO be
serving the Lord and John d. Roekefel-
Ter, didn't he?' the chairman interrupted.
but l refused the offer" Merritt an
swered emphatically. II told Gates that
couldn't retain my manhood and work
for John d. Rockefeller"
The intricacies of the transactions were
involved and with difficulty were drawn
from the witness Rep. Beall of Texas
finally summed up the matter
you do know this, them" asked Beall,
before you DEATH with John d. Rookie
Teller you and your brothers had VAL
liable stockholdings in the Lake Supe-
-rior ore region and IN this railroad, and
after your dealings with him you had no
stocks?"
Yes, that's it," said Merritt.
Il want tn emphasize further that
before l Geait with Rockefeller, ! had
| Ito interest in the Duluth, Missabe q
Northern Railroad which, last year
| made SS,00o,00o and that now | have
nothing. / am inclined TO blame the
preacher more than | am Rockefeller
He deceived me. / don't blame Rookie
| felier SO much. He belongs to the
money trust
What reason did Rockefeller have
| for closing i'll on your" asked Rep
| Gardner. Did he need the money!
! He wanted that property. l am con,
! WINGED he sent the Hands off notice
to finaneiers with whom | tried t,
raise the money to redeem my prop
erty. He told financiers in CLEVELAND
| whom [ approached that the propert!
| he got fer $40 a share wasn't wortl
s. and / couldn't get cent put tor
much faith in these men in my inter
| est to develop the property. | was on
| ly a lumber jack and woodsman, I'M
used 70 the money trust way. Many 6
Western man has had a similar expert.
ence in lew York.
After Chairman Stanley had indieat.
de that he would be very glad to hear
from Mr. Rockefeller in the matter
MI. Beall made his motion that he bt
served with a subpoena duees tecum
Here George Wildwood Murray, per
sonal counsel for Mr.. Rockefeller. OBJ
iected and suggested that Mr.. Rookie
fellcr be requested to send the con
tract desired.
Il am sure Mr.. Rockefeller would
be glad to comply with any request,
said Mr.. Murray.
e. III. Martz, engineer of the rail
road, testified he was forced by Mr.
Rockefeller to sell his stock in tht
road because he was an employee.
Washington, Nov. 2i.--How JOHN ID
Rockefeller secured control 6f tn,
| Railroad through a loan of 81, 600 900
| how the value of the railroad property
| is said TO have been padded" to make
| 1t appear %erth more than $1,000, 00t
| end how the road is now earning more
| than 800 a share in dividends wa.
! told to the Stanley Steel Trust Irves
/ tigating committee, today. by Charles
| H. Martz, formerly chief engineer o.
| the road Mr. Martz with some bit.
| terness, told how he once owned A!
shares Of stock in the road, but hat
to sell it to the Rockefeller interests
for so share. in order, as he claim
ed, to make his job secure"
George w. Murray, counsel for Mr.
Rockefeller, was present,
In response to questions by Chair
man Stanley, Mr.. Martz said that thu
Merritt Brothers, who built the Du
lutn. Missabe & Northern, borrowed
$1,000 600 from John d. Rockefeller ii
1899 to extend their railroad into Du
luth.
He testified that the total cost of the
road and docks at Duluth amounted
to s1,700.000 Soon afterward, in 1899
Mr. Martz declared, the control of thu