The Birmingham age-herald., 1911-11-26
Characterizes Testimony of Brothers Before Stanley
 Committee Outrageous
GIVES MORE DETAILS
 THAN ROCKEFELLER
Cotton Also Denies Charges Made T By Martz Before Stanley Com mittee--tiates Just Heard
 of the Charges

New York, November 25.-"I have to say that not one syllable of the words of Ieonidas Merritt put in my mouth was ever uttered by me-" declared the Rev Frederick T. Gates in a statement issued late today, replying to the testi- mony given by Merritt recently before the Stanley investigation committee. with all the emphasis I can command wish to deny these outrageous charges
 MT Gates statement was issued, as was that of John D. Rockefeller on Thurs day evening, from No. 2s Broadway. III it the man whose name figured so largely in the testimony of the Merritt brothers regarding the manner in which MT. Rock efellers gained control of the Missaba ore properties and the railroad to develop them, goes much more into detail than did MT Rockefeller in his reply to the charges.
 Mir. Gates says that while the Merritts were testifyifig before the committee he swas on an inspection tour of the West ern Maryland railroad, and only this morning received a, stenographic report of the Merritt testimony. After register ing his emphatical denial MT. Gates con- tinuel: IA
 T have further to say that not one of the' wrong acts which Merritt says MT. Rockefeller committed or that I commit ted in his behalf were ever done by either MT. Rockefeller pr me, and both MT. Rockefeller and I on oath denied all the wrong acts, specifically and in de- tail, IS years ago. I need not add that every one of the Merritts who had made t the charges or hhd joined in making them withdrew the charges over his own signature, because the full document in which they did this was given to the Associated Press from this office only d dey or two ago.
 4 sQ1fIh Denial
 'tIut f wish once more, snesi ficsliy and with all the emphasis can cofnmand, to dsny not only in general. but, in detail. these outrageous charges Of ! Leonidas Merritt. Leonidas Merritt was never In yited to come to New York by Rockefeller or his agents When MT. Merritt came to New York he was not solicitedt by MT. Rockefeller or his agents to re4sain in New York. I
 .Neither MT. Rockefeller nor hIsNagents ever solicited Leonidas Merritt or anyone 
 properties. The consolidation was con ceived and effected by MT. Merritt and his friends without solicitation from Rock efeller or his office. MT. Rockefeller never made a call loan to Leonidas Mer- ritt or any of the Merritts.
 "All the loans made by MT. Rockefeller to the Merritts were time loans with spe- cihc dates of maturity. They permitted them to run on indefinitely.
 "At no time was Leonidas Merritt told that he must pay these losns either in A Hours or on any other date
 Not the slightest pressure was ever put upon Merritt or any of his brothers at any time to pay their loans. MT. Rocke- feller was perfectly willing to carry them. They know we'll that the pressure upon them came from other creditors of long standing-not MT. Rockefeller"
 MT. Gates says that MT. Rockefeller ac ogpted an offer from the Merritts in Feb ruary, 1894, to sell 90.000 shares of stock for $900,0O0 and gave them an option ito buy back for. one year at 6 per cent more than half the stock" The Merritts, he adds. were so pleased that two weeks later they urged Mir Rockefeller to tbuy 12,OOO shares more at the same price, which he did, fact. says Mfr. Gates, the Merritts had forgot to testify.
 If the Merritts felt" continues MT. Gates, that they had made a mistake in selling this stock to MT. Rockefeller at s1Q, why did not the ygo into the market, as they could have done. any time during 1894 and 1895 and recoup themselves by buy ing the stock for less than $1O, or why did they not exercise their option to buy back from him at $10."
 Baseless Suit I Mir. Gates goes on to say that MT. Rockefeller failed to extend the option of the Merritts from year to year because they never asked him. but instead began a "baseless, suit against him. Two of the Merits, he says, however, "and like wise several of their most intimate friends in Minnesota and elsewhere, to whom Mr. Rockefeller had also loaned money and were not in position to pay. were carried by Mr. Rockefeller year after year until the stock had come to be worth par and above and they were now rich men, MT. Rockefeller renewing and extending their loans every time they asked.'
 MT. Gates traces the advance of the \ stock doing so, he says, by records of MT. Rockefellers purchases made in tile open market and showing quotations of e2s. 25 in 1s9s $6O in 1899 and par in 1901 As to the reasons for the rise, he declares Ethe stock was low in 1893, 1894. 1895 and 1896. because ''the now great mines were >tken mining prospects. with millions of SnCney required" and because the ore was then not adapted to existing smell kters, It being generally understood that llhese Mesaba ores. while, when deve- k.pped, they could be cheaplv mined. would De of small Value and could be only little 6sed" 4 4
 T The stocks rise, he says. was due to the hdaptation of furnaces to the ore Because pf its cheapness but mainly because MT. Rockefeller gave the whole enterprise his lnancial backing pouring million after million into the mines and railroad and eteamships to carry the ore until 1901, when he sold out his stock his advances Inmounted .'aIl told to nearly $1a.0000O0,, this sum being apart from his purchases |of stock. sT
 The request to compromise the Merritt Lawsuit came from Merritt and not from Mr. Rockefeller, Mir. Gates declared. His lawyer, MT Washburn." the statement bays. .came to onr legal representative in Duluth. MT. Cotton. and asked thnt negotiations might be begun for com proruise" He quotes telegram from Mir. Cotton to Rockefeiler's counsel in New York. telling of a request by Wash burn clients for a conference, with a view of amicable settlement
 lie also quotes the reply of rpunsel in New York. George Wildwood Murray, agreeing to the conference, hut only on condition that the settlement. If made, should Include "conipAete withdrawal of all charges of fraud snd nisrepresenta- tons. and written statement to explain lntellfeently, consistently with the cvi- denee given by defendart's witnesses, err TOT cons statements of nRintiff's witnesses and intellIgently explah how plaintiffs If '