New-York tribune., 1911-11-22
Got Mesaha Property, Now
Worth S7O,O00,000, for Less
Than 81, 100000, Wit
ness Says.
HIS LOANS WERE CALLED
First President of Mesaba Road
Tells Steel Committee Oh
Man Forced Him to Part
with His Stock in the
Panic Of 1893.

Washington. Nov. 2l-Alfred Merritt,
of Duluth Mimi. the first president Oh
the Duluth. Missabe e. Northern Ran
road who styled himself a luhoe'
tack" unacquainted with the me'hou'
of the money trust told the hous7
Steel investigating committee to-uaS
that through loans Of less than SLp"'-
600 from John d. Rockefeller he had lost
his holdings Of one-tenth I'm the Mesaba
| iron mines and the railroad. properties
now owned by the United states steer
CORPORATION and estimated 10 be worth
to-day as much as $70OOoOOOo
Merritt and his brother Leonidas, VINO
will testify tomorrow, were among the
original mine owners in the Lake Supe-
rior region md part owners and builders
0. the Duluth Missabe & Northern Rai-
road. The elder Merritt declared tnat
he was induced through +. d. cafes
Mr. Rockefelers secretary I'm charge
of his charitable work. ITO put up all his
holdings as collateral for loans from Mr..
Rockefeller in 1892 and 1893 one loan
was for S42OOOO Others were for vari-
Gus sums Gates, he said was Bap-
fist preacher in whom he had confidence
and who assured him that in placing a
call loan he would not he pressed ana
that he would be taken care Of.
Had "a Hours to Raise s42o,ooo.
The witness related how. two months
after he had put up his collateral with
Mr. Rockefeller, in. the panic of 1873
Rockefeller called the loan. giving him
twenty-four hours 10 raise S42OOeo. and
that, being unable to raise the money
he and his brother lost their property
He acknowledged that Mr. Rockefeller
offered him an opportunity to buy his
property back within year, but said
that the oil ma told inanciers TO keep
their hands off" and he was not able 10
raise money anywhere.
Dispute as to the nature Of the trans
action arose when y. A. Reid. counsel
for the United states Steel Corporation.
said that the Merritts had made actual
sales Of their stock holdings to Rookie
Teller in order 10 raise money, and that
they never had taken advantage of tho
opportunity TO repurchase within a year.
Another brother, Mr.. Reid said, had re-
deemed his stock and secured his pro
rata portion at S20s a shore when II was
taken over az the time Of the organiza-
tion of the Steel Corporation.
Mr.. Rockefeller To Be Called.
The introduction of Mr.. Rockefeers
n ne in this manner almost resulted in
the issuance of a subpoena duces tecum
for him TO appear before the COMMITTEES
with the contract made AZ the time Of
the Merritt loans. Representative Beall.
of Texas moved that this be done No
objections were heard when Chairman
Stanley put the motion, but the COM
mittee decided later in executive session
no, to call Mr. Rockefeller until Leonidas
Merritt had testified.
The Merritts were first parties 10 a
transaction with Mr.. Rockefeller and
others in the formation of the Lake SUI
perior Consolidated Iron Mines. In this
the mines of that region and the Duluth.
Missabe & 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. Subsequently Rockefeller paid
the Merritts S525,OOO in settlement for
Thu
Rockefeller Sent Gates to Him.
Before this settlement and after he
had lost HIS stock holdings and ceased TO
be president OF the railroad Merritt testi-
{ d that F. d. Gates came TO him and
said that Mr.. Rockefeller wanted him to
continue a president Of the road for an
other year.
WAS that the Baptist preacher Gates
who came 10 you?" asked Chairman
Stanley.
Yes" Merritt replied. He said Mr..
Rockefeller had confidence in me and
knew that |, through my acquaintance
with the boys on the range, would he
able to get more shipping business than
any one else could do. i guess that was
true"
The Rev. DR. Gates seemed TO be
serving the Lord and John ID. Rocke-
feller. didn't he?" the chairman inter-
rupted.
But refused the Offer" Merritt
answered, emphatically. Il told Gates
that | couldn't retain my manhood and
work for John d. Rockefeller"
The transactions We're involved. and
the details were drawn from the witness
with difficulty. Representative Beall
| finally summed the matter up.
you do know this. then" he said.
before you dealt with John ID. Rookie
Teller you and your brother had valuable
stock holdings in the Lake Superior ore
region and in this railroad, and after
your dealings with him you had no
stocks"
YES. that's it," said Merritt. Il want
to emphasize further that before dealt
with Rockefeller | had one-tenth in
terest in the Duluth. Missabe a. North
ern Railroad, which last year made SS.-
coo 900. and that now | have nothing.
"Blames the Preacher Most"
IL am inclined to blame the preacher
more than | am Rockefeller. He de-
ceived me- l don't blame Rockefeller so
much. He belongs To the money trust
What reason did Rockefeller have for
closing In on you?" asked Representa-
tive Gardner Did he need the money!
He wanted that property. I am con-
vinced that he sent hands Off notices