The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-11-27
GLLEIT STILL GONE
Also the Marvellous Luck That
Once Made Him.
HOW HE DID BUSINESS
And Why People Were so
Anxious to Get His Paper.
HOW HE DID BUSINESS

Kansas City. No. Nov ss-The where
ahouts of Grant c. Gflett, the Kansas
cattle feeder whose failure was announced
yesterday. IS stu unknown.
Probably twenty-five different Kansas
City livestock commission nrms are in
dorsers OF Gilletts paper. which is said to
be scattered throughout the banks OF the
country from Denver 70 New York City.
All Of the local firms declare the paper
they hold is amply secured, and that there
cannot possibly be any loss 10 a single
holder.
OF the cattle n the feed lots, something
over 1000 head were purchased from one
Denver firm. that OF Dake & Keeler. 10
whom Gillett IS said TO have given a mort
gage Of SOS 900. These cattle are three
year-old steers. and cattlemen assert that
a low estimate Of their present value Is
$50 head. or about $40 head more than
the interest in the cattle held by the Den
yer firm. Another lot of cattle is about
$500 head. which Gillett and another deal
er own in Oklahoma. These cattle are
said 20 be mortgaged for sl25.ooo. and are
said to be worth third more than the
amount against them.
A remarkable thing about Gillett's meth
DDS of doing business was that he kept
10 books and took no one into his conf
dence. All the details Of his enormous
deals were carried in his head. and this
complicates matters. Gillett Subscribed
as a careless nfnancier, and those who
know him best now say that sheer luck
carried him through many OF his heavi-
est deals. Many local stOckmen declare
that he would not run away. even II he
knew his debts would wipe out his horde
and ranches. because he believes that luck
will always attend him. Nevertheless,
there was talk today that he had mort
gagged many Of his cattle twice, and had
left TO avoid arrest.
The deal that forced Gillett 10 the wall
was $4,000 loan held by a Kansas, City
livestock firm. The money was ADVANCED
TO him on $500 head of feeding cattle in
Oklahoma. and the mortgage fell due last
week. The Kansas City firm declined 20
extend the loan. Gillett tried hard 10
get money, but for the fifirst tine in his
career he was unable 10 get backing.
Close upon the heels Of that came deal
that he had made with Vail & Gates, the
Arizona cattle magnates. Gillett had paid
$1,000 as earnest money on 1000 head OF
cattle in the Panhandle Of Texas. which
Vale & Gates owned on the famous
IA" ranch. These cattle were worth
$4,000, and Gillett was unable 10 raise
the money to take them. He saw his
$4,000 go 70 buy liability for the loss
to Vale & Gates.
As soon as II was learned here that
Gillett was being pressed by one or two
OF his creditors. others sent their repre-
sentatives TO his ranch TO protect their
loans. Meanwhile the plunger took his
leave. Eastern holders Of Gillett's paper
which had passed through the hands OF
the Kansas City firms began telegraphing
and today few of the Kansas City houses
but were trying to sell livestock paper.
GiIletts methods of operation were
novel. He would buy cattle in big bunch
es as many five thousand IN a bunch.
with borrowed money secured by a mort
gage on the cattle, and would ship them
to his Woodbine. Kansas. 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 commits
sion men would receive from Gillett Q and
10 per cent for their loans. They would
sell the paper to bankers and others all
over the east and west al five and six
per cent interest on their loans. the COM
mission men making and per cent
interest on their loans. lit was these
enormous profits which made the com
mission men anxious for Gillett paper
They were suspicious. II 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, II one
did come. A good deal of Gilett's paper
Is past due; much more OF II falls due
soon. II the investors east who have
bought these notes demand payment al
once IL will cause trouble
Gillett shipped x. 90 head OF cattle into
Kansas City this year He often made a
profit OF IS head, but his expenses were
enorrnOfia