The Birmingham age-herald., 1911-11-23
LeOnidas Merritt Tells More About Foreclosure of
 Loan
COMMITTEE TO MEET
 AGAIN IN DECEMBER
Gardner Thinks Testimony of Broth- CTS Is of Little Value--MotiOn Made To Strike It
 From Record

Washington, November 22-John D. Rockefeller and his almoner, the Rev. 1 F. D. Gates of Montclair N. J., will be I invited by the House committee of in- quiry into the United States Steel corpor- ation to reply to testimony given yester- ! day and today by Alfred and Leonidas I Merritt of Duluth, Minn., charging that 1 Rockefeller through Gates as agent, took from them in 1893 s10,OOO,OOo in Messaba iron mines and Duluth, Messaba and Northern railroad securities to satisfy a call loan of $4200o0. These securities were afterward sold to the United States Steel corporation and are today part of that corporations vast holdings. | After Leonidas Merritt had testified to-
 day that he had gone to New York with 10,000,0OO in securities, had met MT.
 Rockefeller and two months later had
 nothing except ''chance to walk from
 New York to Duluth on the ties" the steel committe held an executive session. Previously Chairman Stanley had am
 nounced that MT. Rockefeller would be
 subpoenaed.
 The committee decided, however, merely l to ask MT. Rockefeller and Mr. Gates if they wished to appear and to give them an opportunity to be heard l 'If MT. Rockefeller does not wish te come before the committee,' Chairman Stanley announced. ''the committee will not issue a subpoena for him. The same applies to MT. Gates"
 Merritt Completes Testimony
 When Leonidas Merritt had completed his testimony in which he dramatically described how Mir. Rockefeller had first captured him with his proposal to form a consolidation of interests in the Lake Su- perior region, had loaned him money and later foreclosed on him, leaving him and his brother without any equity in properties they had discovered and fi- nanced. Representative Danforth of New York moved that the testimony of both brothers be stricken from the record on the ground that it was irrelevant to the ] irdtfe This molten was lost. Tn the |, discussioif Representative Gardner of l Massachusetts, who voted with Danforth | in favor of it, said he could see little of relevance to the question.
 Tt seems to me that this testimony
 
 said Mr Gardner. 'in getting at orc values or freight rates. Even though 1t does-perhaps justly so-cast reflec- tions on MT. Rock efeller, I can.aot see where it is of any value in this in- vestigation."
 Of the same mind were George We'll wood Murray, counsel for MT Rocke feIler, and R. A. Reid of counsel for the Steel corporation. but when the mo- ton had been voted down Chairman Stanley declared that he thought lie had, by admitting the testimony of the Merritts, done a great service ito hu- manity."
 Committee Adiourns
 The committee adjourned tonight lfprobably not to meet again until after Congress convenes, when the objec- ltion of the Steel corporation to con- tinuance of the hearings because of the lgovernment suit against the steel | trust will be taken up by the full com mittee. Representative Littleton of New York, a democrat, who is opposed to the committee proceeding further until the House has been consulted re- l garding the situation, remained away l from the committee room today. l Another witness today was P. F. Nell | son of Duluth a mining operator who declared that the freight rates charged 1 by the United States Steel corporation in the Lake Superior region were ex- orbitant.
 "The steel trust recently reduced the freight rates over their ore roads from | 90 to SO cents ton," said MT. Nell son, but the 60 cent rate Is exorbitant | I agree with James J. Hill that per cent earnings is enough for railroad. To bring per cent earnings on their ore roads the steel trust should reduce rate to 25 or 30 cents ton" 1 Leonidas Merritt, brother of Alfred Merritt, who yesterday told the story of the family loss of valuable ore and railroad property to John D. Roche- feller was on the stand
 l Witness described how he and his brother sank the first ore pit in the country in 1891. Soon afterward, he said. there was a rush to the terri tory.
 "I wanted the country to be Min nesota enterprise" said Merritt and l conceived the idea of a state lease law whereby the people of the state could in jail, but I've been worse; that is, lobbyist and legislator I got the lease law through"
 Merritt said experts went over the range and condemned the ore as use- less That prevented the Merrltts bor- rowing money. he said. They worked away on their own reserves and re- 1 sources. however. and began negotia- tions with capitalists to build rail- 1 road which led up to the subsequent dealing with MT. Rockefeller, he con- cluded
 Tried To Interest Carnegie l Witness said that among the men he attempted to interest in the ore prop critics and railroad project without sue cess were H. c. Prick and Andrew Carnegie.
 Irick, who was then in the Car negie company, invited me to see him.. said Merritt. He bulldozed me; cut me off short with ridcule as to my Iproject and hustled me out l After the construction of the rail- | road several officials of the road tried ] to sell 10 per cent of the stock in the mines and 51 per cent of the railroad 1 to the Minnesota concern, rival. The 1 situation then developed Mir. Rocek- feller as the man who might be inter- ested in the project, Merritt said.
 q think Senator Clapp" Merritt said, was far more farsighted than was, and If I had taken his advice to sell out I'd be better off now | Merritt grew excited as he told tho 1 story. and turning in his chair and fac 1 ing George A. Murray. MT. Rockefeller's I conunsel, he pounded the table as he l declared: "I could not see how in hell could N-