Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1912-01-09

4
Junction to the ore dock at Su-
perior.
In the winter of '92, the Win
nipeg railroad went into the hands
of a receiver and were not able to
carry out their contract. In order
TO carry out our contracts with
different mines and make our mines
and our railroad a success, it was
necessary to build line from Stony
Brook Junction to Duluth and to
build ore docks at Duluth. This
was an expensive piece of road to
build and in order to build this
26-mile extention and dock. it would
be necessary TO have about $4,000
O00 Our mines and railroad, in
which the Merritts owned the con-
trolling interest, was considered |
worth at that time from 100000 |
loco to $60,000,0OO. An old-time !
friend of ours advised us to open |
negotiations with Mr., Rockefeller.
This was about the first of Janu-
airy, 49, Immediately after We
had opened negotiations with Mr..
Rockefeller, the Duluth and Iron
Range people offered US $700O,000
for our property We refused it,
knowing that this was too cheap.
The negotiations were carried on
through Mr.. c. w. Wetmore,
tool of Mr.. Rockefeller. Mr.. Wet
more and Mr.. George Wildwood
Murray, Mr.. Rockefeller's private
attorney, came to Duluth and con-
Quoted the negotiations in Mr..
Rockefeller's interest. BY the
terms of this contract, they were to
furnish s2,5OO,0OO in cash and take
in payments bonds of the Duluth,
: Mesaga and Northern railroad at
soc on the dollar. The money was
to be paid to the railroad on en-
= giners' statements as the work pro-
!. crossed
!. Having faith in his contract, the
u Merritts Immediately after the ex-
t. eeution of said contract, let the
p contract for the building of the
l. railroad and contracted for all the
se material that was necessary in the
ID construction Of the ore dock. Wet
re more and his associates failed t.
furnish the money as agreed upof
ir which greatly embarrassed the rail
er road in their work. Lon Merritt
as and | went to New York in May
Mt Mr.. Rockefeller claimed that h
ed had not agreed to back up MI
of Wetmore in his contracts. FINAL
D. contract was agreed to betwee
,ft the Merritts and Rockefeller by tn
he terms of which the Merritts wer
IN to put the railroad and mines int
Id a new company called the LAX
or Superior Consolidated Iron Mines
N. This company was capitalized TO
I'm $4,000 900 The Merritts receive
re stock in this company in lieu c
ty- their holdings. Mr.. Rockefelle
" owned some iron properties
a Spanish America and also prof.
he erty on a Michigan range calle
,ad the Penoka and Gogebic mines. NJ
at Rockefeller and associates repr
les scented these mines to be very vail
all able and in good financial cond
lid ton. Mr.. Rockefeller received IS
- 0O0,0 of bonds in the Lake s.
. perior Consolidation company,
payment for these properties.
an inducement to get us to emit
into this contract, c. w. Wetmo
and the Rev. Fred t. Gates. N
Roekefeller's private secretary al
the dispenser of his charities, to
us that as soon as 1t was know
on the Street that Mr.. Rockefell
was interested with us in the CO
solidation, we could easily borrC
from soc to 40c on a dollar, usi
our stock as collateral They cit
as proof of this assertion the gre
value of Standard Oil stock.
soon as the consolidation was for
led, it was rumored on the STR
: that Rockefeller had the Merritts
his grasp and that the Peno
and Gogebic mine was absolute
bankrupt and s1,2OO,O0O in
hole. ! was told that statem'
had been sent to Rockefeller abb
80 days before the execution of
consolidation contract, August
The Penoka and Gogebic prop
ties being part of the consolida
company and 1, being a director
this company, l forced Mr.. Muir
! to let me see this statement.