The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-11-23
CONTINUE STORY
OF THEIR UNOO|NG
rittBrothersPa uper-
lied Through Deal With
Rockefeller.
LOSE $40, 900, 900
IN FEW MONTHS
They Tell Investigating Commit
tee How, With Minister as His
Agent, Oil King Won Their
Confidence and Then Took
All Their Valuable
Holdings.

dbHiHEt ton, NoEcmber 22.-J ohm d.
Rockefeller and his almoner. Rev. F.
d. Gates. OF Montclair. n. J.. will bo
invited by the House committee of In
qulry into the United States steel Cor
poration to reply TO testimony given
yesterday and to-day by Alfred and
Leonidas Merritt. OF Duluth, Mimi
charging that Rockefeller, through
Gates AZ his agent. took from them
in 1898 slo,oo0.0oOo IN Mesaon iron
mine and Duluth, Mesaba and North
ern Railroad securities 10 satisfy, n
call loan Of $4,000. These securities
were afterward sold to the United
States Steel Corporation and are to-
day a part Of that corporations vast
holdings.
After Lconidas Merritt had testified
to-day that he had gone TO New York
with 100000 In securities. had met
Mr.. Rockefeller and two months later
had nothing except Chance to walk
from New York to Duluth on the ties"
tho steel committee mad an executive
session. Previously Chairman stanley
had announced that Mr.. Rockefeller
would be subpoenaed. The committee
decided however. merely to ask Mr.
Rock cfellcr and Mr.. Gates II they
wished to appear. and to give them an
opportunity to he heard.
'Tf Mr.. Rockefeller does not wish to
come before the committee. Chairman
Stanley announced. the committee
will not issue subpoena for him. The
same applies to Ar. Gates"
Want II or Record.
When Leonidas Merritt hri COM
pleted his testimony. in which he dra-
matically described how Mr.. Rookie
Teller lrst had captured him with his
proposal to form consolidation OF
interests in the Lake Superior region.
had loaned him money and later fore-
closed on him. leaving hln and his
brothers without any equity In prop
critics they had discovered and
financed. Representative Danforth, OF
New York. moved that the testimony
OF both brothers be stricken from the
record on the ground that II was irrel-
orant to the inquiry. This motion was
lost.
In the discussion OF the motion
Representative Gardner. OF Massachu-
sets. who voted with Danforth in favor
of 1t. said that ne could see little OF
rclevanco to the question OF ore-hold-
Ing values and freight rates OF the
Steel Corporation.
1T seems 10 me-" said MIR. Gardner.
"that this testimony is OF little value
TO the committee In eating at ore
values or freight rates. Even though
on Mr.. Rockefeller, cannot see where
Il is OF any value in this !nvestiga-
ton"
or tho same mind wc:e George w.
Murray. counsel for MI Rockefeller,
and D. A. Reid Of counsel for the
steel Corporation; hu; when the mo-
tion had been voted down. Chairman
Stanley declared that he thought no
had. by admitting the testimony OF
tho Merrltts, done great service to
humanity"
The committee adjourned tonight.
probably not to meet again until after
Congress convencs. when objection OF
the Steel Corporation 10 a continuance
Of the hearings because OF the gov
eminent suit against the Steel Trust
Will be taken up by the full commit
tee Representative Little. OF New
York. Democratic member who 10
opposed to the committee proceeding
further Under the House. and has been
consulted regarding the situation. re-
manned away from the committee room
to-day.
Rates Exorbitnnt.
Another witness to-day was P. II.
Nelson. of Duluth, a mining operator.
who declared that the freight rates
charged by the United States Steel
Corporation in the AXE Superior re-
glen were eXorbitant.
"Thc Steel Trust recently reduces the
freight rate over tteir ore roads from
so to 60 cents u tom. said Mr.. Nell
son. but the TO cent rate is eNorbi.
tant. agree with James j. Hill that
per cent. earning is enough for
railroad. To bring per cent. earn
ings on their ore roads the Steel Trust
should reduce rates to % or 30 cents
tom"
Leoridas Merritt. brother of Alfred
Merritt. who yesterday told the story
of the family loss of valuable ore and
railroad property to John D. Rpckefel-
Ter. reiterated before the committee
to-day many of his brothers state
nients. In detail he described how his
father. back in the fifties. had predicted
n great future for the Mesaba regions,
and how he and his brother sank the
first ore pit In that country In 1891.
Soon afterwards. he said, there was q
rush to the territory.
Merritt related how in 1898 he went
TO New York with Rev. 8. D. Gates. Mr.
constant companion, and urged him to
accept the consolidation of interests
proposed by Mr. Rockefeller.
Won His Confidence.
Coates took me to Mr.. Rockefeller"
said Merritt. ~ felt honored at being
called before such magnate. He
seemed to be q kindly. brothery sort
of fellow. He said II we would agree
ITO the consolidation no proposed ne
: would take care Hof us. He also said
that no never specuiated, and for that
reason would not take any stock in
the consolidation. He would Just keep
Y tho bonds In the proposed Lake Supe-
rior Consolidated Iron Mine Company
that we were organizing. His talk cap
4 ltured me- and ] told him would agree.