Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1911-11-25
BY JOHN D.
How Oil King Secured Ore
Lands Worth Millions.
FORGED TO SELL HIS STOCK
Witness Tells Steel Trust Investi-
gators How He Lost Valu-
able Property on
Call Loan.

| Washington, Nov. 22--Alfrea Mer
rift, Of Duluth, MINI, the first presi
dent OF the Duluth, Missabe & North
ern railroad, who styled himself T;
"lumberjack," unacqualnted with th'
methods OF the money trust, tolc
the house steel trust investigating
committee that through loans of les,
than sl,0o0,000 from John d. Rookie
Teller he had lost his holdings in the
Missabe iron mines and the railroad
properties now owned by the United
States Steel corporation, and estimat
sd TO be worth az high as 100000.
000.
Merritt and his brother, LeoBidas
Merritt, we're among the original mine
owners in the Lake Superior region
and part owners and builders OF the
Duluth, Missabe Il Northern railroad
The elder Merritt declared that he
Rockefeller's secretary, in charge oil
his charitable work, to put UP all his
holdings as collateral for loans from
Mr.. Rockefeller in 1902 and 1908.
Had Confidence In Minister.
One loan was for 100000. Others
were for various sums. Gates, Merritt
said, was Baptist preacher, in whom
he had confidence, who assured him
that by placing a call loan he would
not be pressed and that he would be
taken care of.
The witness related how, two
months after he had put up his col
lateral with Mr.. Rockefeller, during
the panic of 1898, Rock. seller called
the loan. giving him twenty-four hours
TO raise 100000. and that, being un.
able to raise the money, he and his
brother lost their property. He admit,
ted that Mr.. Rockefeller offered him
an opportunity to buy his property
back within year, but declared that
the oil king told financiers Ito keep
hands off" and that he was unable
to raise money anywhere.
Dispute as 10 the nature OF the
transaction arose when ID. A Reid,
counsel for the United States Steel
corporation, stated that the Merritts
had made actual sales OF their stock
holdings to Rockefeller in order to
raise money, and that they never had
taken advantage of the opportunity TO
repurchase within year
Another brother, Mr. Reid declared
had redeemed his stock and secured
his prorata share at s20S per share
when it was taken over at the time OF
the organization OF the United States
Steel corporation.
Chief Engineers Experience.
Charles H. Martz testified that he
made the original survey for the Du-
luth, Missabe 4 Northern railroad,
and that the road was built for the
purpose of developing the Missabe
iron ore range.
In response to questions by Chair
man Stanley. Mr.. Martz said that the
Merritt brothers, who built the rail.
road, borrowed si.a00.000 from John
D. Rockefeller in 1892 to extend their
road into Duluth.
81 think that the loan was offered
to the Merritts by Mr. Rockefeller
through man named Wetmore," sald
Mr.. Martz.
He further testified that through
this loan the road was extended to
Duluth and that the total cost OF the
road and docks at Duluth amounted la
81 roo 900
Soon afterwards, i'm 1898, Mr.. Martz
declared that the control of the road
was taken over by Mr. Rockefeller.
He remained as chief engineer, and
when the Minnesota railroad and
warehouse commission brought suit
against the road for reduction of
ore rates. he said that he was directed
by counsel for the road. in the pres
ence of Mr. Rockefeller's counsel to
make report that the total cost of
the railroad had been s5.000,00
Mr. Martz then told the committee
that he had owned fortynne shares
of stock in the railroad Officers of the
company borrowed nineteen shares,
which they said was to use as collat-
eral IN raising money In New fofk.
This stock Mr. Martz declared he
never saw again.
Forced to sell stock.
After that Martz said, Mr. Rock
efeller sent the general manager to
inform me that il was against the pol
icy OF the company for employees to
own stock in the road and asked me
to sell for $50 share did sell II
and that stock is now paying divi
dend of 500 share"
Did Won ever try TO hnd out wha
became OF the other nineteen share'
Of your stock asked Representative
Gardner
No" said Martz. II was given t.
understand that II didn't investigate
my job would be secure.