Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-11-24
mo FRAUD, He SAYS
Rockefeller Answers Charges
of the Merritt Brothers.
TELLS OF ORE LAND LOAN
Gives Statement Generating Him
Signed by Accusers.
DENIES CALLING OF LOAN
Instead, Oil Magnate Asserts, He
Made Second Advance to Min
nesota Mining Men.


Rockefeller, in statement given out here
last night, replied to the charges made
by the Merritt brothers before the Stan
ley steel investigating committee regard
ing the methods used by Mr.. Rockefeller
in securing control of the Mesaba ore
mines and the Duluth, Mesa ba and North
ern railroad.
He points out that these charges were
denied under oath as long ago as 1895
in litigation over the Lake Superior Con-
solidated iron mines
He furthermore submits the text Of a
paper bearing the date of January o.
1897, to which are attached the names
of Alfred and Leonidas Merritt and .'all
the other members of the family" declar-
/ ing themselves satisfied that neither Mr..
| Rockefeller nor his agents committed
fraud or made Misrepresentation in the
matter in question.
Mr.. Rockefeller then sets forth what he
says are the facts with regard to the
loans. to which the Merritts testified,
and denies that the loans in question
were ever called by him.
Rockefeller Exonerated.
The statement. which was issued from
| NO. ~ Broadway, is as follows:
In the matter Of the evidence of the
Merritt brothers before the Stanley COM
mittee In Washington. d. c., rejecting
upon MI. John D. Rockefeller In connec-
ton with some ore and railroad proper
ties on the Mesaba range, Mr.. Rookie
teller authorizes the following statement:
lettering to the testimony Of the Mer-
rttt brothers before the Stanley commit
tee in which they charged fraud and mis-
representation by Mr.. Rockefeller and
MT. Gates In connection with the Lake
superior Consolidated Iron mines and
that they were deprived Of their interest
IN that company by means of q loan made
| them by Mr.. Rockefeller of $42O,OOO
| which he called during the panic of 1885
all Of which statements were denied un-
der oath in the United States court d .
the trial OF the litigation in 1895, it would
be absurd to try in the newspapers at
this late date the issue In that case, but it
| Is significant that upon the settlement
which was made at the close of that ltti-
cation both Alfred and Leonidas Merritt
| the two who testified before the Stanley
| committee. together with all the other
members of the family, gave Mr.. Rock
| efeller the following paper:
Held Guiltless Of Fraud.
| Certain matters Of difference have
existed between the undersigned and
John d. Rockefeller, and a certain litiga-
ton has been pending between the under
| Ter. in which litigation it was claimed
that certain Misrepresentation were
made by Mr.. Rockefeller and those act
| ing for him concerning certain properties
sod by him TO Lake Superior Consoli-
dated iron mines.
1t is HEREBY declared that from recent
independent Investigations made by u.s. or
under our direction, we have become
satisfied that no Misrepresentation was
made or fraud committed by Mr.. Rookie
Teller, or by his agents or attorneys for
him, upon the sale by him of any prop
perior Consolidated iron Mines or upon
the purchase by him from one or more OF
us Of any stocks or interests in any min
ing or railway company or companies, or
upon the pledge by us, or either of us. to
him of stocks and securities belonging
to one or more Of US; and we hereby
withdraw all such charges and claims,
and exonerate Mr.. Rockefeller and his
agents and attorneys therefrom.
Duluth. MINI. January22, 1897.
In the presence of Merrill NJ. Clark.
Joseph B. Cotton.
"'(Signed) Alfred Merritt, Jane A. Mer-
rift. Leonidas Merritt, Elizabeth f. Mer-
rift. Andrus r. Merritt, Elizabeth D.
Merritt. Lillian Merritt. May 1. Merritt.
John e. Merritt. Eta NJ. Merritt Wilbur
]. Merritt. Ida Merritt. Andrus r. Mer-
| ritt as surviving partner Of the late firm
| Of G. c. and A. r. Merritt; Eliza NJ.
Merritt Hanson f. Smith. as administra-
| tor Of the estate of Casius c. Merritt, de-
! ceased; Napoleon B. Merritt, Matilda T.
Merritt, Eugene I. Merritt. Anna Mer-
| rift, Thomas A. Merritt and s. Merritt
Made Additional Loan.
1.-THE facts with regard to the loan
were as follows: The loans aggregating
$4,000 were made by Mr.. Rockefeller
In various amounts during the summer
| Of 1893. Mr. Rockefeller never called
tho loans. In February. 1894, the Mer
rift Brokers', being pressed by other
creditors, applied to Mr.. Rockefeller for
| further assistance.
Instead of calling his loan. as they
charge, he furnished them an additional
sum of $4,000 They sold him 10000
| shares OF stock at SO share. amount
| ing to $9OO.OOO, the several members of
! the family contributing different proper
| lions. One-half of this, more than
| enough to cover his loan to them, lie
gave to each OF them option to re-
| purchase in year at the price that they
| had sold to him. with per cent interest
| prior to the expiration of the year
| Alfred Merritt. one of the brothers who
| testified before the committee, brought
suit against Mr.. Rockefeller. and he and
| several of the others never endeavored
| TO exercise the option.
| another brother and nephew, at the
| expiration of the option, applied for an
| extension of 1t on their stock, which was
| given, and they subsequently, took back
| their stock. amounting to 10000 shares
| and on the formation of the steel cor
portaion sold 1t to that company