The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1911-11-25
BROKE Bid Up
.Alh.d M.rsil BiaRes jain D. RQeke.
felisH aud a Preacher for
his FINANCIAL RUIN

Says the Preacher Induced Him to
4 Borrow Money From Rockefeller,
and That Rockefeller Took Advan-
sage OF Him and Fleeced Him Of
Ali His Stocks and Bonds.
Alfred Merritt. of Duluth. MINI,
me .tirst president of the Duluth, Mis-
tlahe.& Northern Railway, who styled
himself ''lumberjack unacquainted
With the methods. of the money
,arust."" told the house steel trust In
restigating committee today that
through loans of less than $1,o00,0o0
fronl John D. Rockefeller he had lost
his holdings In the Missabe Iron
mines and the railroads properties
now owned by the United Steel cor
poration and estimated to be worth
eoday as high as s700,0o0,000.
Merritt declared that he was in
duced through F. D. Gates, MT.
hockefeller's secretary, "in charge of
his charitable work." to put up all
his holdings as collateral for loans
from Mr.. Rockefeller in 1892 and
1898. One loan was for s420,000.
Others were for various sums. Gates,
he said, was a Baptist preacher in
whom he had confidence and who
assured him that by placing call
loan he would not be pressed and
that he would be taken care OF. e.
The witness related how, two
months after he had put up his col
lateral with Mr.. Rockefeller. during
the panic Of 1898, Rockefeller called
the loan, giving hin "a hours to raise
S4s0,0o0 and that being unable to
raise the money he and his brother
los, their property. lie admitted that
Mr. Rockefeller offered him an OPP
portunity to buv his property back
within year but declared that the
oil king 4 told fnanciers "to keeo
hands of" and that he was unable 70
raise money anywhere
The Merritt's were first parties to
transaction with Mr.. Rockefeller
and others in the formation Of the
Lake Superior Consolidated Iron
mines. In this the mines of the SUI
persor region aud the Duluth, Miss
abe,'& Northern were consolidated.
Out of this a suit by the Merritts
against Rockefeller developed on. the
ground Of Misrepresentation of the
value Of mining properties turned in
by, the Rockefeller interests. Subse-
quently, Rockefeller paid him the
Merritts s525,O0O in the settlement
for this.
Before this settlement and after
ho had lost his stock holdings and
Before this settlement and after
ho lad lost his stock holdings and
ceased to be president of the rail-
road, Merritt testified that F. D.
Gates came to him and said 'Mr.
Rockefeller wanted him to continue
as president of the road for another
year.
"Was that the Baptist preacher
Gates who came to you asked
Chairman Stanley.
"Yes,' Merritt replied. HE said
Mr. Rockefeller had confidence in
me, and knew that I, through my ac-
quaintances with the boys on the
range, would be able to get more
shipping business than any one else
could do. guess that was true"
"The Rev. DR.. Gates seemed to be
serving the Lord and John d. Rocke-
felled, di.:n't he?" the chairman in
terrupted.
"But I refused the Offer" Merritt
answered emphatically. II told Gates
that I could not retain my manhood
and work for John D. Rockefeller.
The intricacies Of the transactions
were involved and with difficulty
were drawn from the witness. Rep
resentative Beall Of Texas finally
summed the matter up:
You do Know this, then" said Mr..
Beall, before you dealt with
John D. Rockefeller, you and your
brother had valuable stockholdings
in the Lake Superior ore region and
in this railroad and after your deal
ings with him you had no stock?"
Yes. that's it," said Mr. Merritt
II want to emphasize further that
before dealt with Rockefeller had
1-10 interest in the Duluth, Missabc
& Northern railroad which last year
made sS,O00,0o0, and that now l
have nothing"
Il am Inclined to blame the
preacher more than am Rockefeller.
He deceived me. don't blame Rock
efeller so muck. He belongs to the
money trust"
"What reason did Rockefeller have
for closing in on YOUR" asked Rep
rcsentative Gardner. did he need
the money!
"He wanted that property. l am
convinced that he sent the hands OF"
notice to fnanciers with whom l
tried to raise money to redeem my
property. He told financiers in C!eve-
land whom l approached that the
property he got for SO share was
not worth IS, and could not get a
cent