Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1907-05-09
PlUNCER GATES IS
FORCED TO QUIT
Worlds Biggest Brokerage Firm
Closes Its Doors: Its Mil.
lions o! Dollars Lost.
DELAYED BY LIABILITIES
Partners Did Not at First Make tt
Announcement. Fearing a Bad
Effect OF the
Change.


Chicago, May 3.-.Iohn w. Gates. WIS
has been known to carry 5000, 900 or
his person and who used to go to SiouA
city. Ia, twenty-five years ago and sell
b:rbed wire when he was travelling 70.
a hardware house. is going out of the
stock gambling business. His million:
are lost.
The largest brokerage house in thu
world. Charles G.. Gates ~ Co, is to &c
out OF existence. Partners of the tirlr.
acknowledge they have decided to quit
Would Have Meant Ruin.
The past depiais .oday's confess
sion of liquidation are explained by the
femark that when the reports We're first
heard he firms liabilities We're sc
heavy that IN acknowledgment of dis.
solution would have meant ruin to the
house and Il second panic on the stock
exchange.
Charles G.. Gates & Co. OWED ap.
.2rnNimalelY- $50. 900, 00D. all of which
represented Wall street deals. These
staggering liabilities were accumulated
by the fact that grave ~dissensions had
broken out among the twelve partners
Several of the latter objected not only
To the enormous obligations the firm
mad incurred, but to the manner the
debt had been piled up. 1t was charged
that the chief special partner. John w
Gates. was responsible for two-thirds
of these liabilities and ii was insisted
that this be reduced. IL aot liquidated
at one
New York Banks Act.
Tie determination of three of the
general partners to have his settle
ment made was the beginning OF the
End. The New York banks scented
trouble ana demanded that the firm
take up it's loans. The larger part
VI these obligations consisted of Ten
nessee Coal and Iron company shares.
stock of the United States Realty COM
pay and huge blocks of the shares of
the Republic Iron and Steel company
corporations which John w. Gates CON
irolled directly or in which he had n
large interest.
Sale Forces Down Price.
The market for Tennessee Coal ard
Tor Realty was such that the lines
could not be sold. A test was made at
the time with Tennessee. A thousand
shares fellcd the issue fourteen points.
IT was understood that part of the
loans We're thereupon transferred To
private individuals. while the other
part was romargined to Il comparative
~ safe level. Blu to supply The add
Slonal margin Gates was said TO have
sold silt-edged securities at more or
less of a sacrifice. Stock of the Parm-
;iec Bus company. paying IL per cent
per annum, was disposed of at a heavy
concession. The transaction is said IL
represent about one-ffth of the total
capital issue of the company. Gates
also is said to have %relinquished liber-
ally of his holdings OF Chicago ranll
shares. among them II block of Illinois
Trust and Savings bank certificates.
Planned Steel Trust Rival.
All this was the elimination OF the
mary extensive deals i'm which the elder
Gates was the leading promoter. Ii
had been his idea to form IL steel and
iron combine in opposition to the
United States Steel corporation. and tc
that end he had secured the Tennessee
Coal and Iron