The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-11-24
Was business Transaction,
Not II ghway Robbery
Tells OF the Loan.

u els OF inc Loan.
The facts with regard to the loan
were as follows:
The loans, aggregating $42v,O0o,
were made by Mr.. Rockefeller in var
ious amounts during the summer OF
1898.
Mr.. Rockefeller never called these
loans. In February, 1894. the Merritt
brothers, being pressed by other
creditors. applied to Mr.. Rockefeller
for further assistance.
Instead of calling his loan, as they
charge, he furnished them an addition
al $4S0,o00. They sold him 10000
shares of stock at $40 share, amount
ing to 100000. the several members
of the family contributing different
proportions. For one-half OF this,
more than enough to cover his loan.
to them, he gave to each OF them an
option to repurchase in year at the
price that they had sold It to him,
with per cent interest.
Prior to the expiration Of the year.
| Alfred Merritt. one OF the brothers
who testified before the committee,
and he and several of the others
never endeavored to exercise the opt
ion. Another brother and nephew, at
the expiration Of the option, applied
for an extension of 1t on their stock
} which was given, and they subsequent
w took back their stock amounting to
, 10 900 shares and on the formation OF
} the Steel Corporation sold 1t to that
company.
Gates Unraveled "Tanuied Affairs"
| Reference to the manner in which
Mr.. Rockefeller gained control Of the
ore fields is contained in his own
[ book, Random "reminiscences Of Men
I and Events" published in 1909. He
3 alludes to his employment of Rev.
t Frederick T. Gates, whom he ealogizes
0 as possessing combination OF rare
i business ability. very highly develop
r ed. and very honorably exercised
g and who he'd taken cares OF many
n kinds off my shoulders"
$ Mr.. Gates, Mr.. Rockefeller says II
h his book, had taken a position where
e by he could help unravel some Of thu
q "tangled affairs' growing out of MI
p Rockefeller's minority holdings in en-
terpiises in the northwest country
81 Mr.. Gates went into the study o
each of these business concerns and
a did the best he could with them, MT
IS Rockefeller writes.
! How Stock Was Acquired.
y Among those investments were
"A some shares in number OF ore mines
= and an interest in the stocks ant
=. bonds OF railroad being built U
d. carry the ore from the mines to lax
ra ports. we had great faith in thes
a. mines. but to ~ork them a railroa'
do was necessary. 1t had been begun
10, but in the panic of 1898 1t and all otl
of er developments were nearly rulnes
Il. although we we're minority leader
30 of the stock it seemed to be up to US I
Keen the enterprise alive through tn
n, narrowing panic days. | had to loa
,s. nv personal securities to raise none
mt and finally we were compelled to sul
- nlv a great deal of actual cash, an
he then really upset money market an
ay buy currency at high premium
az shin west by express to pay the !
~. Lorers on the railroad and to kee
them alive. When the fright OF II
ve panic period subsidized and matters
nd came a little more settled, we oega
,r+ to realize our situation. We had
.en vested many millions and none war
NJ cd to go In with us to buy stocks {
i the contrary everybody else seem'
ra. to want to sell. The stock was one
,5c. ed to us in alarming quantities--su
nm. stantially all of the capital stock
i'm the companies came out without al
ON solicitation or our part-1uite Z
hat contrary-and we paid for 1t in cas-
ms 1--WE now found ourselves in conti
we Of great amount of ore lands