The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-11-27
HE KEPT NO ACCOUNTS
METHODS OF GRANT c. GILLETTE,
THE KANSAS CATTLE KING.
He Employed No BoOOkISeeper, hut
Kept All the Details Of His EnOr-
nous Deals In His Head.

KANSAS CITY, Mo-, Nov. 26-The
whereabouts of Grant c. Gillette, the big
Kansas cattle feeder, whose failure was an
nounced yesterday, are still unknown. Prob
ably twenty-five different Kansas City live
stock commission firms are indorsers OF
Gillettes paper which is said to be scat
tered through banks of the country from
Denver to New York city. All of the local
firms declare that the paper they hold is
amply secured and that there cannot pos
sibly be a single loss to any holder. OF the
cattle in the feed lots, something over 10000
head were purchased from one Denver firm,
that of Dake & Keeler, to whom Gillette
is said to have given mortgage of $2OS,OO'
These cattle are three-year-old steers, and
cattlemen assert low estimate Of their
present value is $50 head, or about $40
head more than the interests in the cattle
held by the Denver firm. Another lot of
cattle is about $500 head which Gillette and
another dealer own in Oklahoma. THESE
cattle are said to be mortgaged for $S25,OOO
and are said to be worth third more than
the amount against them
A remarkable thing about Gillette's meth
DDS Of doing business was that he kept no
books and took no one into his confidence.
All the details of his enormous deals were
carried in his head, and this complexities
matters. Gillette is described as a careless
fnancier, and those who know him best
now say that sheer luck carried him through
many of his heaviest deals. Many local
stock men declare that he would not run
away if he knew his debts would wipe out
his herds and ranches, because he believes
that luck will always attend him. Never
theless there was talk to-day that he had
mortgaged much of his cattle twice and
left to avoid arrest.
was a Sl25,000 loan held by Kansas City
live stock firm. The money was advanced
to him on $500 head of feeding cattle in OK
lahoma, and the mortgage fell due last
week. The Kansas City firm declined to ex-
tend the loan. Gillette tried hard to get
money. but for the first time in his career
was unable to get backing. Close upon the
heels of this came g. deal that he had made
with Vail q Gates, the Arizona cattle mag
mates. Gillette had paid $4,000 as earnest
money on 1900 head of cattle in the Pan
handle of Texas which Vail & Gates owned.
These cattle were worth $4,000 and Gillette
was unable to raise the money to take them,
so he lost his $4,000. AS soon as ii was
learned here that Gillette was being pressed
by one or two of his creditors, others sent
their representativ to ms ranch to pro-
took his leave. Eastern holders of Gillette's
paper which had passed through the hands
of the Kansas City firms began telegraph
houses are trying to sell live stock paper.
Gillette's methods of operation were novel.
Gillette would buy cattle in big lunches, as
many as 5000 in. bunch, with borrowed
money secured by a mortgage on the cattle,
and would ship them to his Woodbine
Kan, ranch and sell them in small lots to
feeders, taking their notes. When these
notes were paid he would settle. with the
commission men from whom he borrowed
The commission men would receive from
Gillette and 10 per cent. for, their loans:
They would sell the paper to bankers and
others all over the East and West at and
6 per cent. interest, the commission men
making and per cent interest on their
loans. 1t Wss these enormous profits which
made the commission men anxious for Gill
Iette paper They were suspicious, it is
said. of his methods. but the profits were
so large they took the risks, each hoping
to get from under before the crash came
if one did come A good deal of Gillettes
paper is past DUE much more of it falls due
soon If the investors East who have
bought these notes. demand payment at once
it will cause trouble. Gillette shipped Is 200
head of cattle to Kansas City this year,
and as many last year. He often MADE a
profit of s. head, but his expenses were
enormous.