The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-05-13

a number Of new mills, and he de-
teTnined TO secure as large a share OF the
| trade as possibit. He enlarged his estao-
hsnmen in St. Louis and secured an in
terest IN another one 4 Pittsburg. As
last as his capital permitted he started
| other mills
IN 1879 he Systematically began the alb
| sOrpti6n Of all the barbed wire plants in
te country, and within the next three
years he had gathered twenty-five mills
practically all the important ones in the
| country except that OF his old rival, the
| Wash5urn & Moen Company-into the Or
| ganIzation that was known Familiarity as
! the Bdroed Wire Trust '
In 1888, John ". Gates, who had start
| ed in the steel wire business only ten
! years before was president Of Two great
companies-the Consolidated Steel and
! Wire Company and the Illinois Steel
/ Company. The latter was the largest
/ concern entering into the forma ton Of the
! gigantic Federal Steel Company, in the
/ very active. The Federal Steel Company
/ was formed in 1S98 and in that year the
I wire interests were brought into a single
! organization by the absorption OF the
/ Washburn & Aoen Company.
| In a dozen years Mr.. Gates had made
a great fortune. and had carried out
! schemes Of vast proportions, requiring
holiness and well asenterprise and sound
| judgment. At fifty years Of age he was
several times a millionure and his in
terests We're in such form that they did
not require his personal attention.
He decided to retire from business. and
resigned the presidency Of the Illinois
Steel Company, intending to 60 10 Europe
70 two yeras or more. All his plans were
laid with this object in view, when as he
was one day taking luncheon with Mr.
S. P Elwood the suggestion was made
that the reorganization OF the steel and
wire interests would be a good thing.
wen do it," exclaimed Mr. Gates.
The two men hurried from Chicago to
Pittsburg and within a few days had Sc
cured control Of enough plants 10 assure
the success Of the plan. The American
Steel and Wire Company with its capt.
talization OF 100000 was the result
1t IS said that the rapidity with which
this trust was organized breaks the
record in this particular. Mr.. Gates
trip to Europe was abandoned. but it
as said that he cleared something like
s., 600 800 out Of his stroke Of orgauiza-
ton
Since the reorganization OF this great
corporation Mr. Gates name has been
prominent many times in connection with
one or another great stock ojeration. He
was concerned in extensive trading in
Federal Steel and Chicago Gas and only
NTv~
ported that he had cleared nearly 1900 900
from the rise in Baltimore and OHIO and
Union Pacific stock. More recently still
the story was published that h had been
one Of the players in a poker game
in which fortunes were staked in single
pots.
None Of these affairs, however, created
the sensation that has been caused by
the latest coup Of the Chicago dnancier
who has acquired the reputation OF Jug
Cling with millions as a magician might
with individual coins. It is said that this
scheme, like the formation of the Steel
and Wire Company, originated during a
luncheon discussion. At any rate the
business world was startled by the an
nouneement, that twelve OF the trusts
mills were TO shut down, throwing 4 100
men out Of empIoyR emit ''OyerpFoduc-
ton" was the reason advanced.
II has been a fact Of common knowl-
edge for some time that in nearly every
branch Of the iron and steel trade, mills
have been overcrowded with orders and
have been running night and day. There
fore the statement given out by Mr.. Gates
in explanation Of the action, for which
he admits responsibility, came as de-
cided shock 10 investors and spectators.
They were startled and surprised. One
thing only was clear. The CLOSING Of
mills meant a depreciation in the stock
Of the concern. They made haste to IN
load and quotations on the company's
preferred stock, which a few months ago
had been quoted around par, dropped 10
seventy-fve, while the common, which
had a record Of seventy-two, went be
low forty.
Some Of the sufferers by the slump were
unkind enough TO say that Mr.. Gates had
.beared" his own stock and reaped a
big profit thereby A storm Of protest
was launched al him from without and
within the ranks Of Steel and Wire share
holders. The end is not yet but Mr.. Gates
steadily AYERS that time will soon prove
the practical wisdom OF his course.
In his tastes Mr. Gates is distinctly
American. Besides his fonduess for what
has been called the national game" he
is fond Of horses and enjoys a good race /
He was formerly one of the best am
ateur trap and wing shots in the West, !
ana h. Is an expert with the billiard cue.
To his friends he Is known as d jolly
man, who is always ready !
to appreciate and repay favor or q (
friendly act He IS thoroughly devoted !
70 his family. and gives most Of his /
tin7e outside Of his business affairs u (
them.
For several years Nj Gates has been 1
a POLITICAL power in the state Of Illinois,
which is sun his Official residence. Il is +
said that he vas offered the portfolio OF /
the Interior Department in President 1
Harrisou's Cabinet he also mas been +
credited With the desire Of representing (
Illinois n the Senate or OF becoming F.
governor Of the state. Thus Ear he has .
preferred TO further the ambitions o. (
his friends rather than TO indulge his I
own.
Mr.. Gates IS now az the age which = 4
for most men the height Of thsir business (
activity. Il Is by no means Likely that +
the conIufins chapters OF his biography .
axe being written now. At aU events he f
has demonstrated 10 the SPECTATORS OF +
the Street that he can teach them some +
things az thet- own same.
Il IS reported that M Gates : again
7lasning a trip y Europe Watcher this /
7-esages another financial c1up Ike the (
formation OF ;he Steel and Uize Company
-a,lair.s 70 Dc seen, 5ut Wan Street .