The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-01-03
From the New York World.
ffN EVER, never speculate L
'oI stocks or wheat"

ffN EVER, never speculate In
"Pl stocks or wheat
So John w. Gates preached
at the Gulf District Methodist Episcopal
conference in Port Arthur, Tex. On read
ing about 1t many New York men who are
, not preachers insisted that Mr.. Gates
should exhibit himself as "the horrible
example" to Illustrate his text, just as
reformed topers are marched on the stage
at temperance REVEALS.
IrreliEious Wall street rang with laugh
ter and echoed with stories about Gates.
Brokers insisted that the man who had
BEEN a most formidable bull and most
cembativs bear was posing as an inno-
cent lamb in pastoral Texas. There, in
cidentally. he il acquiring an enormous
interest In oil fields and banks.
Gates had a merry time in Wall street
with his American Steel and Wire stock.
out of this he made 5000 900 as it went up
and down. So Wall street said yesterday
and Texas preachers might copper his
sermon-that is, play it to lose.
The five hours In Wall street-10 a m. to
| 8 p. m.-were not long enough for the
speoulator who had sold wires and had
begun to pull them (bsrbed wires, too). So
! Gates opened little stock exchange in
the waldorf Astoria, and often the prices
at the opening OF the big exchange had
been fixed the night before, when Gates
said to his cronies:
Remember, North Pole preferred must
be such and such a figure"
Early In 1902 J. Pierpont Morgan took
his customary trip to Europe. Everything
was serene as far as his properties were
| concerned. Gates had been rather mac
| tive in a speculative way and the tip got
around wall street that he was paying
more attention to the ponies than to the
ticker. One night at the Waldorf a south
ern director OF the Louisville and Nash
| Vile railroad dined with Gates and cas-
ually said that the directors had decided
to issue s5.eoe,ooo OF now stock Louisville
and Nashville was selling around par and
the director suggested that he thought
Louisville and Nashville might therefore
be a good short sale.
! Under the rules of the Stock exchange
q new stock Issue Is not good delivery
until 80 days after 1t has been Issued.
| Gates suspected that the directors had
gone heavily short of the stock in antici-
! patton of a new issue. The next day he
| began quietly buying all the Louisville
| and Nashville he could pick up and he
continued until he had all the floating
supply in Wall street Then Louisville
and Nashville began to advance by leaps.
Sometimes it rose points over night.
| The specializing directors were be-
wildered. As they tried to cover the stock
continued to jump. When it touched 40
Wall street was on the verge of panic.
turbed. The prospect of one of the great
trunk lines passing into the hands of
man who was generally regarded as
reckless spsculator created Consideration
among the big railroad systems. Urgent
cable messages were sent to Morgan. In
reply he ordered his partners to see Gates
and buy control of Louisville and Nash
Vile
Gates made his own terms. He sold his
stock at prices ranging from $40 to $50
| q share. Tho control Of the road passed
from the hands Of the Belmonts and Nor
| gan turned 1t over to the Atlantic Coast
Line.
Wall street men say they have afrection-
ate memories of Gates for his manipula-
| ton of Tennessee Coal and Iron. But they
ada to the text Of never speculate" these
words:
"Never, never play cards. A gambler
| once, a gambler always"
Mr.. Gates last Office was In the Trinity
building. He called his firm Charles q.
Gates g. Co. Others termed 1t 1.-The House
of the Twelve Apostles" as . dozen part
ners were in it. Gates is considered a
good bridge whilst player. OFTEN, after
p. M, bridge was played in the Office.
One day there were only three to play.
young man OF good family, but not
wealthy, came 1t.
'slt down." said Gates. agreeably II
hate to play with dummy"
How much point do you play?" asked
the newcomer
FIFTY" said Gates.
81 can't afford it," was the retoinder.
twenty-five is big game for mo-"
well, mako up the rubber" said Gates,
disappointedly. wen play for 25.''
The young man played well. had luck
and won.
I'VE have sort of clearing house
here said Gates when the game ended.
'Ill send you your check in the MORN
ing
Tho young man got check for e1s0oo
Astounded he took 1t to the signer.
What does this meanr' he asked. IT
calculated that won $40. We were play
ing for Is cents a point, weren't VET"
I'VE were playing for s25 point" re-
turned Gates.
'wha-at! Why. II I'd lost. I couldn't
have paid"