Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-11-22
Sensational Testimony Given
Before House Steel Trust In
yeStigating Committee By Al
fred Merritt of Duluth,
GRABBED PROPERTIES
WORTH 700 MILLION
Oil King Made Loans of Less
Than Million and Then Called
Them In On Twenty-FOur
Hours Notice.

Hours Notice,
lBy Morning journal Special Leased Wire
Washington Nov. 2i.--Alfred Mer-
ritt OF Duluth, Minn. first president
of the Duluth, Missabe and Northern
railroad, who styled himself "lum-
ber jack, unaequainted with the
methods of the money trust" told
the house steel trust investigating
committee today that through loans
of less than $1,000 600 from John D.
Rockefeller, he had lost his holdings
In the MIssabe iron mines and the
railroad property now owned BY the
United States Steel corporation and
estimated to be worth today as high
as s700. 600, O0e.
Merritt and his brother. Leonidas
Merritt. who will testify tomorrow.
We're among the original mine owners
In the Lake Superior region and part
owners and builders OF the Duluth.
Missabe and Northern. The older Mer-
rltt declared that he was induced
through II, d. Gates. MIR. Rockefeller's
secretary in charge OF his charit-
able work, to put up all his holdings
as collateral for loans from Mr. Rock
efeller in 1892 and 1898. one loan
was for s420.00n.
MIR. Gates, he said, was a Baptist
preacher, in whom he had confidence.
The witness related how, two months
after he had put his collateral with
Mr. Rockefeller during the panic of
1893. Rockefeller called the loan. Civ
ing him "a hours 10 rnise Sf20,O 600,
and that beng unable to raise the
money. he and his brother lost their
property. He admitted that Mr.. Rock
efeller offered an opportunity 10 buy
his property back within a year. hut
declared that the oil king told finan-
ciers to keep hands Off and that he
WAS unable TO raise money anywhere.
Dispute as to the nature of the
transaction arose when ID. A. Reid,
counsel for the United States steel
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 re-purchase within year.
Another brother. Mr.. Reid declar
ed had redeemed his stock and Sc
cured his pro rata share of $20S per
share when II was taken over Mt the
time Of the organization Of the steel
The introduction Of Mr. Rockefel-
ler's name in this manner almost re-
suited In the issuance Of a subpoena
for him 10 appear before the commit
tee with the contract made at the
time Of the Merritt loans. Represent
ativc Beall OF Texas moving that this
be done. 30 objections were heard
when Chairman stanley put the mo-
ton. Int the committee decided mter
in executive session not to call Mr..
Rockefeller until Leonldas Merritt had
testfied
The Merritts were first parties to
with Mr. Rockefeller and
others In the formation Of the Lake
superior Consolidated Iron Mines. In
his the mines of the region and the
Duluth, Missabe and Northern were
consolidated ont of this suit by
he Merritts against Rockefeller de-
.eloped, alleging Misrepresentation OF
he value OF mining properties turned
n by the Rockefeller interests. Sub
eQuently Rockefeller. paid the Mer-
tits S525,000 In settlement for this.
Before this settlement and after he
lad lost his holdings and ceased to
le president Of the railroad. Mr., Mer-
lit testified that Mr. Gates came to
lin and said that Mr.. Rockefeller
wanted him to continue as president
# the road for another year.
"Was that the Baptist preacher
iates who came to YOU 9' asked Chair
nan Stanley.
Yes" Mr.. Merritt replied.
He said Mr. Rockefeller had con-
idence in me and knew that l.
through my acquaintance with the
,oys on the range, would be able to
get more shipping business than any
me else could do. guess that was
rue
'rhen Rev. Dr Gates seemed to he
crving the Lord and John d. Rookie
eler. didn't he?" the chairman in
crruptcd.
"But I refused the offer" Mr., Mer-
lit answered emphatically. u told
iates that could not retain my man
lood and work for Rockefeller"
The intrcacies Of the transactions
fere involved and with difficulty were
Irawn from the witness. Represen-
ative Boall of Texas finally summed
he matter up thus,
"He wanted that property. I am con-
inccd that he sent the hands Off no.
Zee TO flnanciers with whom | tried
o rise money to redeem my property.
le told financiers IN Cleveland whom
approached. that the property he
ot for $40 a share was not worth
s, and | could not get cent"
G, II. Martz engineer OF the rail-
Dad. testified that he was forced by
to sell his stock In the