The Birmingham age-herald., 1911-11-22
Stanley Committee Con- tinues Investigation Into
 Steel Trust
ROCKEFELLER WILL
 PROBABLY TESTIFY
Original Owner of Valuable Railroad Properties Tells How Loan Was Called in Unexpectedly
 Forcing Sale

Washington. November 2i.--Alfred Merritt of Duluth Minn., the first pres ident of the Duluth, Mesaba and Northern railroad who styled himself a Humber jack" unaeauainted with the methods of the money trust,' told the House Steel trust Investigating committee today that through loans of less than one million from !. D. Roeke- feller he had lost his holdings in the Missable Iron works and the railroad property, now owned by the United States Steel corporation and estimated to the world today as high as s700. 100000.
 Merritt and his brother. who will tes- ltify tomorrow, were among the or- iglnal mine owners in the Lake sn- lperjor region and part owners and 1 builders of the Duluth. Masaba and Northern railroad The elder Merritt declared that he was induced through r. D. Gates. Mir Rockefeller's secre- tary, "in charge of his charitable work to put up all his holdings as collateral for loans from MT. Rocke- feller in 1892 and 1893. One loan was, for S420,O00. Others were for var.- ous sums Gates he said, was a Sap tist preacher in whom he had confI- dence and who assured him that by placing call loan he could not be pressed and that he would be taken care of.
 Loan Called In The witness related how, two months after he had put up his collateral witb MT. Rockefeller, during the panic of 1893, Rockefeller called the loan. giv- ing him 24 hours to raise $420,O00, and that being unable to raise the money he and his brother lost their property. He admitted that MT. Rockefeller of l fered him an opportunity to buy hls property back within year. but de- clared that the oil king told inanciers ''to keep hands off and that he was unable to raise money anywhere. 4 dispute as to me nature e s4'~e iaetian afpae when D. sa a,eia. r,safAsi for the United States Steel corporation, stated that the Merits had made ae- tual sales of their stock holdings to Rockefeller in order to raise money and that they never had taken ad- vantage of the opportunity to repur- chase within year. Another brother, MT. Reid, declared, had redeemed his stock and secured his pro rata share at S280 per share when it was taken over at the time of the organization of the United states Steel corporation- The introduction of MT. Roekefellers name in this manner almost resulted in inc issuance of a subpoena duees tecmn for him to appear before the committee with the contract made at the time of the Merritt loans. Representative Bealle of TeXas moved that this be done. No ob- jectiohs were heard when Chairman stan ley put the motion, but the committee decided later in executive session not to call MT. Rockefeller until Merritt had testified.
 The Merritts were first parties to a tram action with MT. Rockefeller and others iu the formation of the Lake Superior Consolidated Iron mines Then the mines of the region and the Duluth, Masaba and Northern were consolidated. Out of this a suit by the MerTitts against Rockefeller developed on the ground of misrepresen- taton of the value of mining property turned in by the Rockefeller interests. 1 Subsequently Rockefeller paid the Mer- ritts S525,000 in settlement for this. Before the settlement and after he lost his stock and ceased to he president of the railroad. Merritt testified that r. D. Gates came to him and said MT. Rocke- feller wanted him to continue as presi- dent of the road for another year.
 Was that the Baptist Preacher Gates who came to your asked Chairman Stan- ley
 'Yes,'' Merritt replied, he said MT. Rockefeller had confidence In me and knew that l. through my acquaintance with the boys on the range would he able 10 get more shipping business than any one else could do. 1 guess that was true
 "The Rev. Gates seemed to be serving the Lord and John D. Rockefeller. did he not2" the chairman interrupted
 But | refused the offern Merritt an- swered emphatlcally. "l told Gates that could not retain my manhood and work for John D. Rockefeller
 Summed Up
 The intricacies of the transaction were involved and with difficulty were drawn from the witness Representative Bealle of Texas finally summed the matter up.
 You do know this, then" said MT! Bealle. before you dealt with John D. Rockefeller you and your brother had valuable stock holdings in the Lake Su- perior ore region and in this railroad and after your dealings witt him, you mad no stock?''
 Yes, that is it," said Merritt. T want to emphasize further, that before I dealt with Rockefeller l had one-tenth interest in the Duluth. Masaba and Northern railroad, which last year made $S,000,000, dlIt HOW | nave uplNlnE.
 '.i am inclined to blame the preacher more than | am Rockefeller. He de- ceived me. don't blame Rockefeller so much He belongs tc the money trust'
 What reason did Rockefeller have for closing in on ycu?" asked Representative Gardner. Did he need the money2''
 He wanted that property. I am con- vlnced that he sent the hands off notice to nnanciers with whom l tried to raise money to redeem my property. He told financiers in Cleveland whom l appealed to that the property he got for S10 Q share was not worth s5. and I could not get a cent.
 ''I put too much faith in these mencin my interest to develop the property. I was only lumber jack and Hoodsman. unused to the money trust way. Many a western man has had n similar experi- ence in New York
 After Chairman Stanley had indicated that he would be very glad 10 hear from Mir. Rockefeller in the matter, MT. Bealle maae his motion that he be served .~~----~>s->~-~~~~-~->
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