The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-11-26
MAKES CHARGES
OF DUPLICITY
Minister Gives the Lie Direct to
Merritt Brothers, Who Testi-
fed That They Had Been
Mulcted of Millions Of
Dollars by Oil
King.
lspeelei to The Times ispstchil


Frederick T. Gates. John D. Rookie
feller's almoner, made bitter attack
in carefully prepared abatement is
hied tonight from Standard OIL head
Quarterb. rs Broadway. on the broth
ers. Albert and Lconidas Merritt, who
before the congressional steel truat
investigating committee, testified that
they had been squeezed out OF mil
lions through tho connivance OF the
Rev. Mr.. Gates and MIR. Rockefeller in
a Mesaba iron ore deal.
DR.. Gates explainc that he was max
ing an inspection OF tho Western
Maryland Railroad with come fellow
directors while the Merritts ware tcs-
tlfying before the Stanley committee,
and that he received q full ateno-
graphic report OF their testimony only
to-day.
Il have TO gay he declares, In tho
opening of his statement, that no syl-
liable of the woros which Leonidss
Merritt put In my mouth was ever ut
tered b. me. l have further TO gay
that not one OF the wrong acts which
Leonidas Merritt says MIR. Rockefeller
committed or that / committed In his
behalf was ever done by either Mr.
Rockefeller or me. and that both Nir
Rockefeller and on oath denied ell
the wrong acts specifically and in de-
tall eighteen years ago.
Charges Were withdrawn.
II need not add that every one Of
the Merr!tts who made the charges,
or Joined in making them, withdrew
the charges over his own signature,
because the fuli document In which
they did this was given TO the -Aago.
ciated Press from this office only a
day or so ago"
~ Continuing. Or. Gates says:
! But l wish only more specifically
] and with all the emphasis | can COM.
rnand TO 4eny not in general. bur
IN detail. the outrageous charges OF
Leonida3 Merritt, Leonidas Merritt
was never invited to conie TO New
York by Mt Rockefeller or hia agents
When Sir. Merritt came to New York
no was not solicited By Mr.. Rockefel.
lcr or HIS agents TO remain in New
York
Neither Mr.. Rockefeller nor his
agents ever solicited Leonidas Merritt
or any one else TO unite in consoli.
dution of iron properties. The coneoli-
dalton was conceived and effected by
AIR. Merritt and his friends wlrhou,
solicitation from Mi. Rockefeller OF
hts office
MIR. Rockefeller never made de-
mand or call loan OF any kind TO Leoni-
dag Merritt or any OF the Merritt
brothers All the loans made by Mr.
2 NNNsE.StCiiCA ~ lLlC EhcTEllt3 were ttTnc
loans. With specific dates OF rnaturit;
named in the notes. and neither on the
dates OF maturity or other ti,nc did
+. Air. Rockefeller ever demand payment
Tor these loans. They we're permitted
to run on Indefinitely. ~ no time was
Leonidas Merritt told that no must
pay these loans either in twenty-fom,
hours or any ether time.
'isot the slightest pressure was
ever put upon Merritt OF any or his
brothers al any time 10 pay theiI
loans. Mr.. Rockefeller was perfectly
wiling TO carry them. They knew
well that the pressure upon them came
from other creditors of long standing
not Mr.. Rocketsler,"
Mr. Gates states that In February.
IN 1884. the Merritts offered to sell Rookie
teller $4,000 shares of stock for $500,
F:soo' or more than twice what they
Rockefeller. This offer was ac-
AZ epted the Merritts being given an
8 otion at per cent. for one year to
~ back more than half the stock. AIr.
& ,cketeller had previously purcha sed
ii Yeral thousand shares of the stock
$40 share. The Merritts offered
I'm $4,000 shares at the same price
{ 70 weeks later. which he purchased,
t$T3fe also bought stock from others than
@he Merritts at the same or lower
prices.
DID Not Ask Extension.
ne SAerritt option, Mr.. Gates says
was not extended because they had
not asked that this be done, although
othsr members OF the Merritt family
uad oeen granted extensions year after
year by Mr.. Rock eteller. The value ri
the stock, according to Mr.. Gates. in
creased only slightly in 1896 From
then on 1t advanced until it reached
par in 1901. The reason for the low
price in 1894, Mr.. Gates says was thai
it was generally believed that th. ora
was of an extremely low grade.
During tho early years 1t was
open to all the furnace commands az
the United States he says, the Car,
nsgies Included, to buy this consolt.
dated stock at these low prices, and
apparently nobody wanted These
were the reasons why the stock was SO
very low in the years 1894, 1895 and
. 1885,"
The increase, he says, was due to
the furnace men adapting their fur.
naces to this ore because OF its Cheap
ness III
But the main thing that INCREASED
the value OF the Stock" he continues,
was that Afr Rockefsl gave the
whole enterprise his financial backing,
He, poured into the railroad, into the
mines and into the steamships to
carry tbs ore million after million. We
ind that his advances to the enter
prise up to 1901, when he sold out his
stock. amounted all told to nearly
yl9.o00,000. This was altogether apart
from his purchases OF stock"
the Rev. Mr.. Gates then denies flat
ly the claim OF the Merritts before
/. the stanley committee that he and Mr..
continual on Ninth PaEe3 ;