The Indianapolis journal., 1899-11-27
A BIG IRA NSACTlON.
How John W. Gates Organized Amer
lean steel and Wire Trust.
Now York TeIeCra oh.

New York Telegraph.
John w. Gates. president of the Ameri-
can Steel and Wire Trust, is At the Wal
dorf-Astoria. W. G. Nicholas. the we'll
known Washington correspondent of the
Chicago Post is also in the city, and tells
the following story:
John w. Gates told party of friends
how ne happenened TO g5t back into active
business after he had cleaned up mig
fortune from the sale Of his Federal
Steel and other interests and had made up
his mind TO retire. The story was not told
i'm a hoasting spirit, but the recital was
nevertheless one of live interest as illus
trating the whrlwnd methods employed in
organizing a gigantic enterprise and get
ting il under way. Mr.. Gates and Colonel
Elwood had realized bunch of millions
out OF Federal Steel. and the former had
laid his plans for a trip around the world
with his wife, having gone so far as to in
vite a party of friends to accompany them
and fix the date of departure.
One day while sitting in his Office in Chi
cago chatting with Colonel Elwood he was
called up on the long-distance telephone by
an acquaintance in Pittsburg, advising him
that the owners of a big wire milling
company had fallen out among themselves
and would sell.
IF you want to make trade bring on
100000 and think you can get the prop
erty," said the at the other end of
the wire. Inasmuch as the mills were worth
at least s2,o00000 the temptation was strong
= 10 buy them. The two miilionaires who had
just laid down business cares concluded to
take the property for flyer.
The next morning they were in Pittsburg,
and snugly reposinS in Mr. Gates's card
case was a certified check for s1,OOo,0O0.
They had an all-night session with the own
ers of the wire mills and at o'clock in the
morning they had the property and the
former stockholders carried off the check.
The party repaired TO the Duquesne Club
for refreshments There they met the pro-
prietor OF big wire mill up the State. and
TO him the story of the night was told.
If YOU follows have money to burn you'd d
better buy my mills he said banteringly.
What will you take for emp responded
Mr.. Gates
Nine hundred thousand dollars?'' was the
answer.
Its 60" said Mr. Gates quick as light
ming, and deal involving nearly 81 goo 900
was closed in less than sixty seconds
The two Chicago men then communed
briefly and Col Elwood remarked: John.
must have base Of supplies. Better see
If we can 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, cams docks, iron coal mines. etc
still. he said hesitatingly, Il would like
10 hear, your proposition. What are you
prepared 10 offer?"
Five million dollars cash." was the reply.
And then Mr. Gates added Five million
aSo.ars Is big bunch of money. Better
II want more money" expostulated the
Cleveland man.
We will give s5,OOoOOO, and not a dollar
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 Welded
=. $4,000 in cash, so that the property really
cost Gates and Elwood s2.55O,000 1t was
worth from 100000 10 s. OO00O0 without the
cash.
The next morning the Cincinnati ENQUIRER
had the story OF the Pittsburg deal and the
telegraph brought an offer of some valuab bic
wire plants in and near that city. Mr..
Gates repaired at once TO Cincinnati and
Colonel Elwood FASTENED East to negotiate
for valuable plants in Massachusetts For
ty-elght hours later they met in New York
and on comparing notes found they had in
vested Sl2,Co0.O 600 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 busi-
ness, said Mr. Gates.
"A fair nucleus" responded Colonel Ell
wood Let us go home.
They cannon-balled tc Chicago, and In less
tran another week arrangements were prac-
.ically consummated for the giant consoli-
Cation known as American Steel and Wire