The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-12-10
now A TRUST WAS FORMED.
The Rapid work of the Founders of
the American steel and Wire Com

,,,.. Rapid Work of the Founders of
t,e American Steel and Wire Com
pany.
1r,-bington Correspondent Chicago Post.
when John w. Gates was here he told
Marry of friends how he happened to get
t,k into active business after he mad
,-., red up a big fortune from the sale of
bis Federal steel and other interests and
had made up his mind to retire. The story
mas not told in a boasting spirit, but the
r.lfral was nevertheless one of live interest
a. Illustrating the whrlwind methods en-
rIoved in organizing a gigantic enterprise
and getting il under way. Mr.. Gates and
~ Elwood had realized a bunch of mil
INNS" out of Federal steel, and the former
had laid his plans for a trip around the
World with his wife, having gone SO far
s IN invite a party of friends to accom-
ANY them and fix the date of departure.
ore day. while sitting in his office in Chi
e4eo chatting with Col Elwood, he was
lied upon the long-distance telephone by
an ,cauaintance in Pittsburg, advising him
tb3r the owners of a big wire milling COM
nauv had fallen out among themselves and
would sell. IF you want 10 make trade
bring on $1,0O0,0O0, and l think you can
esr The property" said the man at the
otbar end of the wire. Inasmuch as the
mills we're worth at least 100000, the
tsmDtation was strong to buy them. The
two millionaires who had just laid down
business cares concluded to take the prop
ertv for a flyer.
The next evening they were in Pittsburs,
and snugly reposiug in Mr.. Gates card
gass was a certified check for $1000,09o.
They had an all-night session with the
ov-nfrs of the wire mills, and at O'Clock
in the morning they had the property and
the former stockholders carried off the big
check The party repaired to the Duquesne
TN1,ar1
nroprietor of big wire mill up the state,
md to him the story of the night was told
of Won fellows have money to burn
von'd better buy my mills" he said ban
teringly.
what will you take foF 'em?" respond
81 Mr. Gates.
nine hundred thousand dollars" was
IRIS a CO." said Mr.. Gates quick as
Eshtning and deal involving nearly ST.,
05OCt0 was closed in less than so seconds.
The TWO Chicago men then communed
briefly and Col. Eiwood remarked: John,
If we are going into the wire business we
must have a base of supplies. Better see
# we can't buy the Cleveland rolling
mills
Taking the first train out of Pittsburg
they proceeded as fast as steam could take
Them to the city on the lake. That evening
they broke in on the owner with the blunt
statement that they had come to buy his
property. which included rolling mills,
steamships, docks, iron and coal mines,
etc.
"But don't want to SELL" he pro- este1.
"sul" he said, hesitatingly. 81 would like
TO hear your proposition. What are you
prepared to offer|'
Five million dollars cash. was the re-
oily. And then Mr.. Gates added: Five mil
H lion dollars is a big bunch of money. Bet
A ter hnk it over
Il want more money 'expostulated the
Cleveland man.
We win give you 100000 and not
dollar more"
The gentlemen met later in the evening
and before midnight the trade was Closed,
4 the old owners stepping out and the new
. stepping in. The cleaning up" vie ded &c.
4 5000 in cash, so that the property really
cost Gates and Elwood $255O,C00 1t was
worth from $L000O00 to 100000 without
/ the cash. The next morning the Cincin-
4 natl Enquirer had the story of the Pitts
4 burg deal, and the telegraph brought an
4 offer Of some valuable wire pants in and
h near that city Mr.. Gates repaired at once
d to Cincinnati and Col. Elwood FASTENED
4 East to negotiate for valuable pants in
Il MassaChuse is. Forty-eight hours later
they mel in New York and on comparing
n notes found they had invested $12,000,000 of
their cash in wire plants. All that happen
cd during the week between Christmas and
ut looks as though we were in the bust
ness said Mr.. Gates
a fair nucleus" responded Col. EFwood.
"Let US go home"
They -balled to Chicago and in
less han another week arrangements were
practically Consummated for the giant
CONSULTATION known as the American steel
and wire-capital $9OQOO.OOO Jan. IS, or a
HtJe over three weeks from the date of
thar long-distance telephone conversation
between Chicago and Pittsburg, the con-
sttuent properties were duly turned n and
the steel and wire stock was distributed
according to arrangement. This in brief
is the inside history of one of the eight
ningst' deals for its magnitude ever ne
goiated. II was a Napoleon:c campaign
ffom start to finish II Is not recorded that
either Mr.. Gates or Col. Elwood lost mon
ey on the transaction Mr.. Gates called off
mat trip around the world