Omaha daily bee., 1899-12-15
QUICK WORK. wITH MILLIONS.
How Two Men with Money Made n
Deal OF Grent Magnitude.

Deal of Great Magnitude.
John w, Gates told a party of friendd
! how he happened TO get back into active
business after he had cleared up a big for
] tune from the sale of his federal steel and
other interests and had made up his mind to
| retire. The story was not told in a boast
ing spirit reports the Chicago Post, but the
recital was nevertheless one of live interest
as illustrating the whrlwind methods em-
ployed in organizing a gigantic enterprise
and getting 1t under way,
Mr. Gates and Colonel Elwood had real
lied bunch of millions" out Of Federal
Steel and the former had laid his plans for
trip around the world with his wife, having
gone so far as to invite a party of friends
to accompany them and fix the date Of de-
parture. One day while sitting in his Office
in Chicago chatting with Colonel Elwood he
was called up on the long distance tele-
phone by an acquaintance in Pittsburg, ad-
vising him that the owners of big wire
milling company had fallen out among them
selves and would sell. ''lf you want to
make trade bring on s1,O0O,OO0 and think
you can get the property" said the man at
the other end OF the wire. lnasmuch as the
mills were worth at least $4,000. 900 the
temptation was strong to buy them. The
two millionaires who had just laid down
business cares concluded to take the prop
erty "for a flyer"
The next evening they were in Pittsburg
and snugly reposing in Mr.. Gates card
case was a certified check for $1,O0O,O 600.
They had an allnight session with the
owners 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
club for refreshments. There they met the
proprietor OF a 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 banteringly
"What will you take for them?" responded
Mr.. Gates.
Mine hundred thousand dollars" was the
answer.
Its a co. said Mr.. Gates, quick as light
ming, and deal involving nearly $lO0O,O0O
was closed in less than sixty seconds.
The two Chicago men then communed
briefly and Colonel Elwood remarked: John,
if 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 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 state
ment that they had come to buy his prop
erty, which included rolling mills, steam
ships, docks, iron and coal mines, etc.
But l don't want to SELL" he protested
still" he said, hestatingly, 81 would like
to hear your proposition. What are you pre-
pared to offer?"
Five million dollars cash." was the reply
And then Mr.. Gates added: "Five million
dollars is big bunch of money. Better
think it over"
"I want more money" expostulated the
Cleveland man.
eve will give you s5,OOO,OoO and not dol
lar more"
The gentlemen met later in the evening
and before midnight the trade was closed,
the old owners stepping out and the new
stepping in. The cleaning up" yielded ST.
$40 600 in cash, so that the property really
cost Gates and Elwood $2,550,00O. 1t was
worth from 900 to $S,000,OOO without
the cash. The next morning the Cincinnati
Enquirer had the story of the Pittsburg deal
and the telegraph brought an offer of some
wire plants in and near that city.
Mr. Gates repaired at once to Cincinnati ana
Colonel Elwood hastened east to negotiate
for valuable plants in Massachusetts. Forty
eight hours later they met in New York and
on comparing notes found they had invested
s12 OO0, 900 of their cash in wire plants. All
that happened during the week between
Christmas and New Year. less than eleven
months ago.
''It looks as though we were in the busi
ness" said Mr. Gates
"a fair nucleus" responded Colonel Ell
wood LET us go home.'
They cannon balled to Chicago and in
ess than another week arrangements were
practically consummated for the giant con-
,olidaton known as the American Steel and
Wire-capital $40, 100000 January 1S, or
title over three weeks from the date of
hat long distance telephone conversation
between Chicago and Pittsburg, the con-
tituent properties were duly turned in and
he Steel and Wire stock was distributed ac-
,ording to arrangement.
This, in brief. Is the inside history of one
II the 'Iightningest" deals for it's magnitude
ver negotiated. 1t was a Napoleonic cam
,aign from start to finish. 1t is not re-
orded that either MIR. Gates or Colonel Ell
wood lost money on the transaction. Mr.
iates called off that trip around the world.