New-York tribune., 1911-11-26
Denies He or Mr.. Rockefeller
Committed Any Acts of
Which They Are
Accused.
TELLS HISTORY OF LOANS
Declares That Far from Demand
ing Payment, Head of Stand
ard Oil Gave Extensions,
Pouring Millions Into
Enterprises.

STANDARD Cl COInidHEf NtotSi""' "ANO'
moon issued statement in reply to the
attacks made upon John y. Rockefeller
end himself by the Merritt brothers in
their testimony before the Stanley in
Ncsugating committee in Washington.
Mr.. Gates reiterates the statement that
Nir. Rockefeller loaned TO various men,
Ncrs Of the Merritt family and to sew
sral Of their friends in Minnesota large
sums of money, and that far from call
sng these loans he gave them extensions
whenever they asked for such favors.
Nr. Gates says i'm his general denial Of
the assertions made by the Merritts:
Not one syllable of the words which
Jeonidas Merritt put in my mouth was
ever uttered by me. With all the en-
phasis l can command ! wish to deny in
detail these outrageous charges"
Mr. Gatos's statement follows:
25 Broadway New York
November ~, 1911.
~ mle The Merritts were testifyinG before
the stanley Committee / was making
tour Of inspection with some fellow direc
lD.S over the Western Maryland Railroad.
nave only this morning received a StonO-
graphic report Of the Merritt testimony
ih' words which Leonidas Merritt put in
ln\ mouth was. ever uttered by me. I have
further 10 say that not one Of the wrong
acts which IeOnidas Merritt says Mr..
Rockefeller committed or that ! committed
IN his behalf was ever done by either Air.
Rockefeller or me. and that both Mr..
Rockefeller and | on oath denied all the
wrong acts specifically and i'm detail eiCh-
teen years ago. ! need not add that every
one of the Merritts who had made the
charges o. had joined in making them
withdrew the charges over his sigma
fufe. because the fun document IN which
1b-y did this was given 10 the Associated
Press from this office only day or two
.anO
But ] wish once more. specifically and
with all the emphasis ! can command. 10
deny not only in general but IN detail
these outrageous charges Of Leonidas NeT-
iitt Leonidas Merritt was never invited to
t,ome TO New York by Mr.. Rockefeller or
lis agents. When Alr Merritt came 10 New
IS ork he was not solicited by Mr.. Rookie
teller or his agents 10 remain in New York
lNcither Mr.. Rockefeller nor his agents
tCrer solicited Loonidas Merritt or any one
iel~e 10 unite in q consolidation Of iron
properties; The consolidation was con
friends without solicitation from MI
Rockefeller or his office. Mr.. Rockefeller
never made a demand or call loan Of any
Merritt brothers.
Never Demanded Payment
An the loans made by Mr.. Rockefeller 10
dates OF maturity named in the notes, aud
neither on the dates OF maturity or any
other time did Mr.. Rockefeller ever de
mand payment for these loans. They were
permitted TO run on indefinitely. At no
time was Teonidas Merritt told that he
must pay these loans either IN twenty-four
hours or on any other date. Not the slight
C-t pressure was ever put upon Merritt or
any Of his brothers at any time 10 pay
their loans. Mr.. Rockefeller was perfectly
willing 10 carry them. They Know well tnat
the pressure upon them came from other
creditors OF long standinS-not Mr.. kocke-
feller
In February. 1894, we received 2 COM
muuicati0u from the Merritts Offering
mark NDu thew themselves made the offers
TO scl us 10000 shares or stock Tor SSOOVV.
Nine hundred Thousand dollars was more
Than twice as much money as they owed
Mr. Rockefeller Mr. Rockefeller accepted
their offer. giving them an option 10 buy
back for one year at per cent, more than
half the stock This option for year COW
cred far more than the previous loans from
Air. Rockefeller which Merritt falsely says
was this stock so offered Mr.. Rockefeller
af So worth more than $40? Merritt sWearS
that il was then worth 500. 4Iet US see,
TIE Merritts themselves had already, as
Merritt testiles tried to sell the stock IN
various markets, yainy. He guesseS that
Mr Rockefeller was depressing the STOCK
by false rumors. Mr. Merritt SuesseS
VrOn.. AS 10 the value Of the stock, VIII
Fav That Mr.. Rockefeller had one month
only previous TO this time. namely, In Jan,
laIv 1884, purchased several thousand
shares of the stock from other people at $40
a share. This was the highest market price
Win this sale of 5000 shares Of stock at $40
"a share that two weeks later they wrote
us from Duluth asking Mr.. rockefeller 70
iuy 1900 shares more at the Price OF sIo
share This 12 900 shares MIR. Rockefeller
also bought. but the Merritts had forgotten
80 testify 10 this heinous crime committed,
Ike the purchase OF the previous @'VU
Shares. at their solicitation
stock Never Above $40 Share"
Now let Us see how wicked these pur-
,ohasss proved TO he They were mace; as
rUsry, 1894. ] find from Mr.. Rockefeller
books. which lie open before me, mat IN
tie month Of March, lSs4' he mace ia otlga
rot the Meuitts AMI the highest price
paid during that month was $40 snare
sud from that down 10 IS a share during
The months of April, May ana June, 1888
AI~ Rockefeller's books show that he mads
further purchases Of this stock from other
people not the Merritts at average prices
between S8 and $40 share. In the months
Of July. August and September, 1894. Mr..
Rockefeller made further and much larger
purchases Of this stock IN the open maTRct
~ from IS % 10 IS 10. I'm September Oc-
tober, November and December or the
same year Mr.. Rockefeller continued 70
buy his stock. and 70 buy IN large quanu-
tics. al an average price OF about IS -
share. THESE stocks were bought in the
open stock market In February, 1879, MT;
JtOckefeuer COn1lnueq ms purchases al nv
share. have now covered the entlre
year In which the Merritts had an option
80 buy back their stock, during which year
the stock was most OF the time Selllng
publicly at less than $40 and never
Summing up what l have said. Mr..
RoCkefellers books show that during the
year in which the MerrittS had option 10
buy back their stock at SIC share Mr..
Rockefeller bought over thirty thousand
thares Of the stock. Twelve thousand OF
these shares were purchased from the
Meuitts themselves at $40. over ana above
Tie ninety thousand shares spoken OF
above and eighteen thousand shares from
other people al an average price lower
than SO.
Mr.. Gates. declares the Aferritts had
au opportunity. II they felt they had
made a mistake in selling their stock to
3r Rockefeller at $40. of going into the
market and buying the stock for less
than $40, or at least exercising their
option to buy back the shares from Mr.
Rockefeller at the price he paid them.
Air Gates continues:
Let me make il plain, then. that while
Alr Rockefeller paid the Merritts SO for
their stock he bought great amounts OF
STOCK from other people at an average price
OF less than So If the Merritts felt that
lhfN had made a mistake IN selling this
STOCK 10 Mr.. Rockefeller at $40 why did not
lhet 20 into the market, az they could have
cone any time during 1894 and 1875. and re-
,onp themselves by buying the stock for
Htt than il0. why did they not ~ least
.ttItse -holr option 10 buy back from him
Eut II may he asked Why. nc,erthsless.
Continued on second page.