The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-12-01
au1cK woRK w1gH MIt1IoNs.
How Two Men Of Money Made
nLightning Deal"

Lightning deal
John w. Gates told party of friends
how he happened TO get back into ae-
tive business afteJ he had cleared up a
big fortune from the sale of his FEEDER
al Gteel and other interests and had
made up his mind to retire. The story
was not told in a boasting spirit. but
tbs recital was nevertheless. one OF live
interest as Illustrating the whlrlwind
methods employed in organizing 81
gantlc enterprise and getting Il under
way.
MIR. Gates and Colonel Elwood had re.
allied bunch OF millions" out OF
Federal Steel, and the former had laid
his plans for trip around the world
with his wife, having gone 30 far as 10
invite party OF friends to accom-
pany them and flx the date OF depar-
ture.. one day while sitting In his OF.
fice In Chicago chatting with Colonel
Elwood he was called up on the long
distance telephone by an acquaintance
in Pittsburgh. advising him that the
owners Of big wire milling company
had fallen out among themselves ana
would sell. "If you want to make a
trade bring on $1,O0O,OOO and / think you
can get the property" said the man at
the other end OF the wire. InaBmueh
as the mills were worth at least $1,000
00O the temptation was strong 10 BUY
them. The two mllliOn0lres who had
lust laid down business cares. eonclud-
ID TO take the property ''for a flyer"
The next evening they were In Pits
burgh, and Enugly reposing in Mr..
Gates cnrdcase was certified check
for 81, 100000. They had an alI-Hight
session with the owners OF the wire
mills and at o'clock in the morning
they had the property and the former
stockholders carried OFT the big check.
The party repaired to the Duquesne
Club for refreshments. There they met
the proprietor Of big wire mill UP the
state, and to him the story OF the night
was told.
'If you fellows have money to burn
you'd better buy my mills, he said,
banterlngly.
what win you take for them?" re-
sponded Mr.. Gates.
mine hundred thousand dollars"
was the answer.
"It's n CO." said Mr.. Gates, quick as
lightning, and deal involving nearly
100000 was closed in less than sixty
seconds.
The two Chicago men then commun-
ed briefly and Colonel Elwo0d remark
ed: John. II we are going into the
wire business we must have a base Of
supplies Better see II we can't buy
the Cleveland Rolling Mills"
Taking the first train out OF Pitts
burgh, 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, steam
ships, docks. iron and coal mines, etc
"But ] don't want to SELL" he pro-
tested. "Still." he said, hesltntingly. II
would like to hear your proposition.
''Whnt are you prepared to offer?"
Five million dollars cash" was the
reply. And then Mr.. Gates added:
give million dollars is big bunch OF
money. Better think It over"
II want more money" eXpostulated
the Cleveland man.
I'VE will give You $5,Ooo,OOO, and not n
dollar more"
The gentlemen met later in the even
ing and before midnight the trade was
closed, the old owners stepping out and
the new stepping in. The cleaning
up yielded S2,54O.OOO In cash, so that
the property really cost Gates and Ell
wood s., $4,000 1t was worth from
$1,000 900 to 100000 without the cash
The next morning the Cincinnati En-
uulrer had the story Of the Pittsburgh
deal, and the telegraph brought an of
fer OF some valuable wire plants in
and near thai city. Mr.. Gates repaired
at once to Cincinnati and Colonei Ell
wood \hastened east to negotiate for
valuable plants in Massachusetts,. For
ty-eight hours later they met in New
York and on comparing notes found
they had invested $l2,00O,OO0 Of their
cash in wire plants All that happened
during the week between Christmas and
New Year, less than eleven months
ago.
1T looks as though we were In the
business said Mr.. Gates.
"a fair nucleus" responded Colonel
Elwood. Let us go home"
They cannon-bslled TO Chicago and In
less than another week arrangements
were practically contaminated for the
giant consolidation known as the
American Steel and Wire-capital.
S9O,OOO0OO. January IS, or n little over
three weeks from the date of that long
distance telephone conversation be-
tween Chicago and Pittsburgh. the
constituent properties were duly turned
In and the S, and w. stock was distrib-
uted according to arrangement.
This. in brief. is the inside history OF
one of the "lightninElest' deals for its
magnitude ever negotiated. II was
NapoleoniC campaign from start to I'm
ish, 1t is not recorded that either Mr..
Gates or Colonel Elwood lost money on
the transaction. Mr.. Gates called OF
that trip around the world.-Chicago
Post.