Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-07-20

woHN ". GATES. one of the most

embarked In the hardware BUSINESS,
starting a small hardware store at
Turner junction, Ill. He himself has
told something OF his career from this
time or.
Here IL IS. as told by himself to a
little group Of friends who gathered
about him at a round table in the red
room Of the Waldorf-Astoria one even
ins Just before be sailed for Europe
several years ago.
First / started travelling for Isaac
l. Elwood. 1 erected the first corral
In the state Of Texas, hiring men to
help me put it up to show the rangers
what use could be made Of barbed
wire. I had not travelled very long
when l came to the conclusion that
there was more money in the manufac-
ture Of barbed wire than In selling it
at a salary OF 800 per month. 1 had
a friend IN st. Louis-I was living in
Chicago at the time-named Alfred
Clifford Clifford and I started in to
manufacture barbed wire IN a very
small way. l think we had three barb
ed wire machines. Our total invest
ment was less than 5000 to start
with. The business proved very profit
able, and we shortly increased, not in
the same factory. but in an independ-
ent factory. We started an incorporat-
ed concern under the name OF ]. W.
Gates & Co, into which eight of US
put each $500, making a total of $2O,-
COO All these men are still alive. We
declared dividends Of about so per
cent per week. Our profits for the
first year were $150,000. At the end
Of the year I suggested that 1 either
buy out or sell out"
The evolution of that plant was the
American Steel and Wire Company Of
New Jersey, with a capital stock Of
500. 900, and the American Steel
and Wire Company Of Illinois, with a
capital of $24,OOOOOO, with Gates as
chairman of both. Gates sold out his
interests to J. P. Morgan & Co. when
the United States Steel corporation
was formed, drawing down many mil
lions in cash, bonds and stock.
Only Bent, Not Broke.
Gates was hurt badly in the North
ern Pacific raid in the spring of 1901.
1t was estimated that he dropped So
100000 at that time. and, while he ad-
United that he had been bent he
was not broke. Early the next year
he 'butted" into Louisville and Nash
vile and. with his powerful Chicago
following, twisted the control from the
August Belmont people, who had for
years been the dominating factors in
the management of the railroad Gates
is said to have bought one-half the en-
fira faSnn nf ztnRly a from 0S m
and then the stock jumped to 100,
when a truce was declared through
the influence of ]. Pierpont Morgan,
then in Europe
After the organization of the steel
trust Mr.. Gates continued in the iron
and steel business for himself. One of
his latest appearances in the limelight
was as witness in the steel trust in
vestigat1on In Washington when he
convulsed the nation by his descrip-
ton of Andrew Carnegie and his re-
marks on the trusts absorption Of the
Tennessee Coal and Iron company.
There has probably never been a
financier in America about whom SO
many good stories were told as John
W. Gates. A good story teller him
self. his sallies were alike popular in
Wall street, at the race track, before
the faro tables or wherever good sports
and spenders most did congregate His
popular name In those days was Bet
You a Million" Gates.
For the last few years Mr.. Gates
rather settled down and lived In Tex
as, or at least his home was there,
although Gates lived pretty much all
over the earth, especially in New York
and Europe
Flipped Coin For $4,000.