Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-11-22
Trimmed" by Rockefeller
and a Preacher, He Says

At the session Of the committee yester-
day afternoon Alfred Merritt. first presi-
dent OF the Duluth, Mesaba and Northern
railroad, was the only witness. He I'M
folded tale of high finance engineered
| by John D. Rockefeller. In which the
committee seemed keenly interested. BY
manipulating a call loan, Mr. Merritt said,
Mr.. Rockefeller had acquired railroad
| and ore properties in Minnesota worth
800 OOO. 900 for less than 100000. The
| man most instrumental in putting the
| deal through was the Rev. F. D. Gates, a
Baptist minister and the manager OF Mr..
Rockefeller's charities.
Il presume commented Chairman
Stanley at this stage of the hearing,
that the Rev. Mr.. Gates was serving
both the Lord and John D. Rockefeller"
ut looks that way" the witness replied.
George Wildwood Murray, Mr.. Rookie
fellers counsel. who was In attendance
at the hearing to look out for his client 8
interests, fatty denied Mr.. Merritt 8
charge that the ell king had secured the
extremely valuable Merritt properties
through the manipulation of a call loan.
He cOntended that Merritt had sold his
properties to Mr.. Rockefeller outright
| within a year, but that the witness had
never taken advantage of the opportunity.
May Subpoena Rockefeller.
The committee, somewhat puzzled by
the contradiction in testimony. had de-
cided at one point in the hearing to call
John d. Rockefeller himself as a witness
in order to obtain certain documentary
evidence bearing on the affairs Of the
Duluth, Mesaba and Northern railroad
and the ore properties which it tapped.
Attorney Murray objected strenuously to
this proceeding, insisting that the COM
mi.tee ask Mr.. Rockefeller to produce
the desired papers.
Il am sure Mr.. Rockefeller would be
glad to comply with the committees re-
quest" Mr.. Murray remarked. The COM
mittee finally decided to wait until after
Mr.. Merritt's brother, Leonidas Merritt,
had testified today. before voting on a
motion made by Representative Jack
Beall of Texas to issue a subpoena deu-
ces tecum for the Oil king.
MIR. Merritt told the committee yester-
day afternoon that he was just "a simple
lumberjack'' and that he had been trim
med by Mr.. Rockefeller, assisted by the
Rev DR.. Gates, manager OF the Rookie
Teller finances, in the way that he te-
men who had the temerity to visit Wall
street. In view of Mr. Merritt's state
ment that he was Just q lumberjack the
committee listened with interest to his
recital OF how the Duluth, Mesaba and
Northern railroad. which, he testified, cost
only $500, 900 to build, had been capitalized
for 5000 600, Of which $780, 900 was In
bonds and 100000 in stock. They
seemed to think that was doing pretty
we'll for confessed amateurs.
Dispute as to Loan Proposal.
AS result Of the testimony OF Alfred
Merritt and Engineer Martz 1t appee
that the Duluth, Mesaba and Northern
railroad wanted to build an extension and
mad to have money.
Both Merritt and Martz insisted that
the first proposal to help them along
came from John D. Rockefeller. Mr..
Rockefeller's counsel insisted just as
strongly that it was Mr.. Rockefell who
was approached. Be that as 1t may, Mr..
Rockefeller finally loaned the Merits
upward of 81 ,00O. 600. Of which, according
a call note.
Mr.. Merritt said that although Mr..
Rockefeller had promised him plenty Of
time on this loan the demand was made
produce the $4,000 within twenty-four
hours or lose all the collateral he had
put up. AS he wasn't able to raise the
money Mr.. Rockefeller. he says, closed
him out.
Discussion of the call loan by which
Mr.. Rockefeller Is alleged to have got
possession of the Merritt properties gave
Alfred of that name an opportunity to re-
lieve his system Of some pessimistic Views
on Wall street.
He had testified that he was persuaded
to accept the call loan by the Rev. Mr..
Gates.
Why didn't you get q time loan?"
asked Representative Gardner.
'Well.' replied Alfred Merritt. with an
extremely gloomy expression. II think I
was used In the way they generally use
western men in New York"
''In other words.'' suggested Mr.. Gard
Rev. Mr.. Gates that the call loan did not
mean what 1t meant?"
YES" replied the witness.
"You are q business man." Mr.. Gardner
continued. "You know what call money
means?"
Admits He Knows Now.
Eyes, I do--now," said Mr.. Merritt
"Why only now?" Mr.. Gardner asked.
WELL" Mr.. Merritt answered. as he
shook his head, "I believed that Baptist
minister
Chairman Stanley asked Mr.. Merritt
how it was that. owning as much valu-
able railroad and ore property as he did.
It was impossible for him to borrow the
necessary $4,000 to meet the Rookie
Teller call loan.
Merritt. land nobody had much money
Besides, think that Rockefeller had said
Hands Of! That fellow is my meat! and
SO nobody would lend me anything at ALL"
Representative Jack Beal Of Texas tried
to simplify the situation.
Doesn't 1t come to this" he inquired,
before you began negotiations with John
D. Rockefeller you had stock In your
railroad and ore properties and when you
got through you did not?"
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