The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-11-22
"Lumber-Jack Loses
Vast Holdings When
Loan Is Called.
BLAMES PREACHER
FOR HIS LOSSES
Testimony Given Before Inves.
tigating Committee Nearly Re
suits in Issuance of Subpoena
for Rockefeller, Who Will
Be Asked to Explain Ma
ture of Transaction.

washington. November a1.-Alfred
Merritt. OF Duluth. Mimi, FIRST presi-
dent OF the Duluth. Missabo and
Northern Railway. who styled him
self lumber Jack" una cauainted
with the methods of the money trust"
told the House Steel Trust investI-
eating committee to-day that through
loans Of less than 100000 from John
y. Rockefeller he had lost his hold
inss In the Missabe Iron Mines and
The railroad properties now owned by
the United states Steel Corporation
estimated to be worth to-day as high
as Sie0.0oo,ooo Merritt and his
brother. Leonidas Merritt, who will
testify Tomorrow, were among the
original mine owners In the Lake SUI
pcrlor region and part owners and
builders OF the Duluth. Missabe and
Northern Railway. The elder Merritt
declared that he was induced through
r. d. Gates. Mr.. RockefelIer's secre-
tary In charge of his charitable
work. to put up all his holdings az
collateral for loans from MIR. Rookie
Teller In 1892 and 1893. One loan was
for $4,000. others were for vari.
Gus sums. Gates. he said was a Ram
list preacher. in whom he had conf
dence, and who assured him that by
placing a call loan he would not be
Pr Esed. and that he would be taken
care Of.
His Lonn la Called.
The witness related lnow. two
months after he had put up his col
lateral with Mr.. Rockefeller, during
the panic OF 1893. Rockefeller called
the loan, giving him twenty-four hours
to raise $4,000. and that being IN
able to raise the money. he and his
brother lost their property. He adj.
mitted that Mr.. Rockefeller offered
him an opportunity to buy his prop
erty back within n year. but declared
that the Oil King told fnancIers ito
Keep hands off," and that he was UNI
able to raise the money anywhere.
Dispute as to the nature OF the
transaction arose when p. a. Reid.
counsel FOR the United States Steel
Corporation. stated that the Merritts
had made sales of their stock hold
ings to Rockefeller In order to raiso
money and TINT they never nad taken
advantage OF the opportunity to TO-
purchase within u year Another
brother. Mr.. Reid declared. had re.
deemed his stock and secured his pro.
ratt share Mt f20S per share when II
was taken over at the time of the
organization of the United States
Steel Corporation.
The introduction of Mr.. Rockefeller.s
name In this manner almost resulted
In the Issuance of q subpoena duces
tecum for him to appear before the
committee with the contract made at
the time OF the Merritt lonns. Repre-
sentative Beall. of Texas, moved that
this be done. No objections were heard
when Chairman Stanley put the mo.
tlon. but the committee decided later,
| in executive session. not TO call Mr..
! Rockefeller until Leonidas Merritt had
testified.
The Merritts were first parties to a
transaction with Mr. Rockefeller and
others In tho formation of the Lake
Superior Consolidated Iron Mines. In
| this the mines OF the region and the
Duluth. Mlssnbe and Northern were
consolidated Out of this suit nv tho
Merritts against Rockefeller developed
. on the ground OF MISREPRESENTATION OF
; tho value OF mining properties turned
In by the Rockefeller interests. Sub
! Continued on Eighth Pago.)