Marietta daily leader. (Marietta, Ohio) 1895-1906, 1899-11-21
Big Deals Suddenly Done.

summated with llghtnlng-like rapidity
was told to a party of friends by John
w. Gates when he was in Chicago a
few days since. The story also ex-
plains how Mr.. Gates happened to get
back into active business after he had
cleaned UP a big fortune from the sale
OF mis- Federal Steel and other inter-
ests, and had made up his mind to re-
tire. The recital was interesting as
showing how great enterprises may
often have their beginning in an un-
expected manner. Mr.. Gates and
Col. Elwood had realized a 'bunch of
millions" out of Federal Steel, and the
former had laid his plans for trip
around the world with his wife, hay
ing gone so far as to invite party of
friends to accompany them and fix the
date of departure. One day while sit
ing in his office in Chicago chatting
with Colonel Elwood he was called up
on the long-distance telephone by an
acquaintance in Pittsburg, advising
him that the owners of big wire mill
ing company had fallen out among
themselves and would sell. "If you
want to make a trade bring on $1,000,-
900 and l think you can get the prop
erty, said the man at the other end
of the wire Inasmuch as the mills
were worth at least $2,0O0,000 the
temptation was strong to buy them.
The two millonaires who had just
laid down business cares concluded to
to taAe the property for a flyer"
The next evening they were in Pitts
burg, and snugly reposing in Mr..
Gates card case was a certified check
for $1,000,000 They had an all-night
session with the owners of the wire
mills, and at 8 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 big wire mill
up the state, and to him the story of
the night was told.
''lf you fellows have money to burn,
you d better buy my mills" he said
banteringly.
What will you take for 'em?" re-
sponded Mr.. Gates.
Nine hundred thousand dollars"
was the answer.
Its a 60" said Mr.. Gates quick as
ligh ming, and a deal involving nearly
Sl,OOO,OOO was closed in less than 60
seconds.
The two Chicago men then commun-
ed briefly, and Colonel Edward re-
marked:
John, if we are going into the wire
business we must have a base of sup
plies. Better see if we can buy the
Cleveland Rolling Mills"
Taking the Irst train out of Pitts
burg they proceeded as fast as
steam could take them to the city on
the lake. That evening they broke in
on the owner VII the blunt statement
that they had come to buy his proper
ty, which included rolling mills,
ps, docks, iron and coal mines
etc.
But l don't want to SELL" he pro-
tested STILL" he said hesitatingly,
Il would like to hear your proposition.
What are you prepared to offer?"
Five million dollars cash." was the
reply. And then Mr.. Gates added:
Five million dollars is big bunch of
money. Better Ink it over"
Il want more money" expostulated
the Cleveland man.
We will give $5,OOO,OOO, and not
dollar more"
The gentlemen met later in the eve
nIng, and before Midnight the trade
was closed, the old owners stepping
out and the new stepping in. The
cleaning up yielded $2,5OO,OOO in
cash, so that the property really cost
Gates and Elwood $2,5OO.OOO. 1t was
worth from $7,OOO,OOO to $8OOO,OOO
the cash. The next morning
the Cincinnati Enquirer had the story
Of th3 Pittsburg deal, and the tele-
grapn brought an offer of some val
liable wire plants in and near that city.
Mr.. Gates repaired at once to Clncin-
ma. and Colonel Elwood hastened
East to negotiate FOR valuable plants
in Massachusetts. Forty-elght hours
later they met in New York and on
notes found they had in
vested $12,OOO,OOO of their cash in
wire plants. All this happened during
the week between Christmas and New
Years, less than eleven months ago.
a.. looks as though we were in the
business" said Mr.. Gates.
"A fair nucleus" responded Colonel
LET us go home"
They cannon-balled to Chicago and
in less than another week arrange
ments were practically consummated
for the giant consolidation known as
-Jmerican Steel and Wire-capital,
$9O,OO0,O00. January 1S, or a little ov-
er three weeks from the date of that
telephone conversation
between Chicago and Pittsburg, the
properties were duly turn
ed in and the S. and w. stock was
distributed according to arrangement.
This, in brief is the inside history of
one of the 'llghtningest" deals for It's
ever negnttated. Ii WAS a