The Birmingham age-herald., 1907-05-03
Local Companies Not Affected
 By His Retirement
GOES TO FRANCE TO HUNT
Rumors Place His Losses During the Recent Slump All the Way From $6,ooo,o 900 to 4o,ooo,ooo.
 The Dissolution.

as John W. Gates, long In the lmelight Is member of the firm, some of the stories are highly colored
 MT, Gates, senior, makes no secret of the fact that he was a heavy loser in the stock market panic last March, but well informed. men say that he did not lose anything like the large sum that certain papers say he did Several accounts place MT. Gates loss at s4OOOo,OoO, while more conservative statements put the figures at s6,00O,O00.
 Although Mir. Gates is member of the syndicate that controls the Republic Tennessee companies and member of the executive committee of each company. he had, 1t is said, never represented a pre- ponderating interest, but on the con trary Is only on an equal footing with Grant B. Schley, known as the financial leader of the Republic Tennessee syndi- cate. l.. c. Hanna. W. O. Oglebay and seven or eight others. It Is stated on high authority that Mir Gates retire ment from active business and his loses whatever they may have been, can in no wise affect the Republic
 The Chicago Tribune of Wednesday says:
 The Dissolution.
 Dissensions, big losses in stocks, heavy office expenses. and the prospect of a dull year in the brokerage business have led to the dissolution of the firm of Charles G. Gates & Co., the largest com mission house in the country.
 John w Gates is figured to be from S4OOoOoO to s5,O0O,0Oo to the good. plus the Sl,OoOW0 he presented to his wife a few years ago. If this be true he Is not quite half as wealthy as he was year or two ago.
 For some time there have been hints that there would be withdrawals from the firm, which numbers twelve mem bers, but not until yesterday was there official information to the effect that the firm would be completely dissolved Tho announcement was made in New York yesterday by Charles G. Gates, the head of the firm, as follows:
 "Inasmuch as there have been several newspaper reports to the effect that this firm Is going out of business and numer- ous inquiries have been received from all parts of the United States regarding the
 
 Charles G. Gates & Co. will be dissolved on or about June 1. Several of the part ners will continue in the commission bus mess by making new connections but with whom I am not at liberty to state at this time. My father and l will retire from active Wall street business for year or so and travel, and give more or less attention to our various outside in- terests.'
 It was announced that Harris, Win throp & Co. would today take over the Chicago office in the Rookery, while A. o. Brown & Co. of New York would se- offices. No announcement was made of the disposition of the two New York of fees, one of which occupies almost an entire floor in the Trinity building, while the other Is in the Wadorf-Astoria. The branch in the Railway exchange in Chi oago will be maintained for time at least
 | The company maintained eight offices in six different cities. The cities were New York, with two offices Chicago, with two; and Washington, Atlantic City, St. Louis and French Lick Springs The gen. eral partners in the firm were Charles G. Gates, Charles c. Smith, R. c. Bogey, M D. Martin, Arthur c. Singer, F. IT. Hubbard, Walter Dupee, Orson Wells The special partners were John w. Gates John Lambert and Frank E. Drake. The Gateses own 55 per cent of the stock of the company. Gates Sr Is not a member of the stock exchange and on every trade he makes has to pay the reg ulation one-eighth commission It is un- dprsfO0d ha haffu 80 per cent of the firms business. The firm has made over 51.000,000 q year. A number of the other partners have been small business producers, but naturally l have shared in the profits due to the spec ] ulative activity of "the old man" This doesn't seem exactly equitable to Gates, Sr.. and In all probability this is the real cause of the dissolution.
 It is predicted that when Europe pals on father and son they will return, go into business for thcmselves-owning 100 per cent instead of 55 per cent-and quit working for non-productiye partners.
 That the firm dissolves without any special indebtedness Is evidenced by the fact that It occasioned no furry on the New York Stock exchange. Had the firm been forced out of business 1t would have occasioned a great shock for It's ram ihcations were wide and those who were members of the firm and those who pa tronized 1t were known as plungers.
 The most conspicuous figure in the firm was John W. Gates, and his retirement withdraws a spectacular character from the largest investment and speculative market in existence
 Called Pirates In Street.
 The house, after first opening in Wall street, soon attracted a large clientele, although the advent of MT. Gates and his plunging methods elicited such gentle epithets as buccaneers" pirates" etc. From the Wall street viewpoint MT. Gates made good one of his titles when in 1902 he caught August Belmont and his friends mapping and bought control of the Louis vile and Nashville from under them. Out of this MT. Gates made a handsome turn, and J. P. Morgan paid the difference be- tween what MT. Gates paid and wNat he sold it for. MT. Morgan and his friends still have the Louisville and Nashville, with some additions, but Mir. Belmont took an oath at that time he would put John w. Gates out of business There were others willing to assist him in his endeavor. This was true to such an ex- tent that Charles Gates told some of his friends:
 "They are after my father, and am afraid some day they will get him."
 They" meaning the market in gen eral, certainly gave MT. Gates and his friends turn in the fall of 1902. There was a regular panic in stocks, and when John w. Gates got through paying his losses he had kidney trouble. He spent a good while in the south, recuperating