Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-11-27
Denies He Did One of the Things
Attributed to Him.
LOANS MADE TO MATURE
Each One, Minister Says, Was Al
lowed to Run Indefinitely.
RELATES HISTORY OF DEAL
LeOnidss Merritt Comes Back with
Assertion Preacher IL More Ia
miIIar with ROckefeIIer's
Books Than Bible.

.
I the statement of Rev. Frederick I.
Gates. in which he cmphatically denied
all the charges made by the Merritt
/ brothers before the house steel investtgat-
ing committee, Leonidas Merritt last night
/ declared he had heard it all before and
| that it was easily to be seen that Mr..
Gates was more familiar with the ledgers
| Of Mr.. Rockefeller than with the Bible
for the reason that his mind for years
had been fixed on cash on earth rather
! than treasures in heaven
| Preacher Speaks Emphatically.
! NEW YORK, Nov. 26.-"l have to say
| that not one syllable of tho words which
| Ieonidas Merritt put in my mouth was
ever uttered by me-" declared Rev. Frede-
rick II. Gates in q statement issued late
Yesterday replying to tho testimony given
by Merritt recently before the tSanley in-
vestigating committee. "With all the
| emphasis can command / wish to deny
these outrageous charges
Mr. Gates statement was issued, as
was John u. Rockefeller's, on Thursday
evening. In it the man whose name
| figured so largely in the testimony of the
| Merritt brothers regarding the manner
by which Mr.. Rockefeller gained control
Of the Mesaba ore properties and the
railroad to develop them goes much more
into detail than did Mr.. Rockefeller In
bis reply TO the charges. Mr.. Gates says
that white tho Merritts were testfying
before the Stanley committee no was on
an inspection tour Of the Western Mary
land railroad and only this morning re-
ceived a stenographic report OF the Mer-
ritt testimony. After registering his im-
patient denial Mr. Gates continues:
II have further TO say that not one of
the wrong acts which Leondas Merritt
says Mr. Rockefeller committed or that
/ committed in his behalf were ever done
by either Mr.. Rockefeller or me. and
that both MIR. Rockefeller and ] on oath
denied all the wrong acts specifically and
In detail eighteen years ago.
Not Invited TO New York.
,1.eonidsa- Merritt wac never invited to
come 10 New York by MIR. Rockefeller or
his agents. When Mr.. Merritt came TO
New York he was not solicited by Mr..
Rockefeller or his agent to remain In
New York. Neither Mr.. Rockefeller nor
\ any of his agents ever solicited Leonidas
Merritt or any one else to unite in "A
consolidation Of iron properties The con-
solidatlon was conceived and effected by
Mr.. Merritt and his friends without
solicitation from Mr. Rockefeller or his
office. Mr.. Rockefeller never made de-
mand or call loan of any kind to
I.eonidas Merritt. or any of the Merritt
brothers All the loans made by MIR,
Rockefeller to the Merritts were time
loans with specific dates of maturity
named In the notes, and neither on the
dates OF maturity nor any other time
did Mr.. Rockefeller ever demand pay
ment for these loans. They were per-
mitted TO run on indefinitely. Al no time.
was Leondss Merritt told that he must
pay these loans either in twenty-four
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. Mr.. Rockefeller was
perfectly willing to carry them. They
know well that the pressure upon them
came from other creditors Of long stand
ing-not MIR. Rockefeller"
Merritts Pleased by Offer.
Mr.. Gates says that Mr.. Rockefeller ac-
oepted an offer from the Merritts in
February. 1894. TO sell 5000 shares of stock
for 100000 and gave them an option ito
buy back for one year at per cent, more
than half the stock" The Merritts, he
adds. were so pleased that two weeks
later they urged AIr. Rockefeller 10 buy
1900 shares more at the same price,
which he did, a fact, Mr.. Gates says, 10
which the Merritts had forgotten to
testify"
IF the AIar1itts felt" continues Mr..
. Gates, that they had nude a mistake
In selling this stock 10 Mr.. Rockefeller
at $40 why did not they go into the mar
, ket. as they could have done any time
during 1894 ana 1895, and recoup thom-
selves by buying the stock for less than
: $40, or why did they not exercise their
, option TO buy back from him at S10g'
; Mr.. Gates goes on to say that MI.
; Rockefeller failed 10 extend the option
of the Mer11tts from year to year bo-
cause they never asked him, but Instead
began "baseless' suit against him.
Two of the Merritts,' he says how
, ever, and likewise several OF their most
intimate friends in Minnesota and else
where to whom Mr.. Rockefeller had also
loaned money ana were not In position
to pay, were carried by Mr. Rockefeller
year after year until the stock had como
to be worth par and above. and they are
now rich men, Mr.. Rockefeller renew inE
and extending their loans every time they
asked"
Traces Advance Of stock.
Ar. Gates traces the advance Of the
/ stock, doing so, he says, by records OF
/ Mr.. Rockefellers purchaBes, made In the
5 open market and showing quotations OF
= t2s.25 in 1893, SO In 1880 and par I'm 1901.
As 90 the reasons for the rise he declares
that the stock was low In lssS-4-5 ana D.
because the NOW great mines were then
: mining prospects with millions OF money
: required" and because the ore was not
then adapted 10 existing smelters, Il be.
ing generally understood that these
Mesaba ores, while when developed they
could be cheaDly mined, would be OF
small value and could only be little
used"
The stocks rise. he says. vas due IA
lcOAtinaed on second Poge.l