The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1911-08-10

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Americas speculating financiers, who
now lies in critical condition IN
Paris, has had life that reads like
good, virile fiction.
During his life he has been called,
first, Johnny Gates, then "Betcher-
a-Million'' Gates, and in later years
Farmer" Gates. He achieved the
splendid fame of beating J. Pierpont
Morgan in struggle for the posses
sion of the Louisville and Nashville
railroad, and again for having been
in turn trimmed by the greatest OF
all the American financiers as a re-
turn compliment.
John w. Gates, who would bet any
body a million on anything that was
at issue, was no wild, harum-scarum
gambler, although the gambling spir-
it possessed him all his life. He
would turn over any proposition
carefully, make his judgment, and
then stand or fall on it for whatever
money was put at stake.
AS barefoot boy of poor parents
at Turner's Junction, now part OF
Chicago, he was a hard worker, but
he was also eager to stake his earn
ings. Whenever a discussion arose
he would settle it with the one query,
"What'll you bet?" His tops, jack
knife, fishing lines, everything he
possessed, would go up to prove that
he was right and the other boy
wrong. He generally won, for his
Judgment was good. In later life he
played the game in Wall street, and,
for recreation, would stake fortunes
at the track and more fortunes at
the poker table. His life was the
life of a man who loved to tempt
fortune and try her out. ,
AS freckled, sturdy, red-cheeked
boy on his fathers little farm he
made his first money by shocking
corn. He saved it, and made care
full bet or two and increased it. With
a little money in his possession, he
looked about for an investment and
found that he could get third own
ership in a threshing machine. IL
linois farmers looked on the inven-
ton as a piece of foolishness, but
that year there was a bumper crop
and the threshing machine worked
smoothly.
Young Gates did so well with his
share that he was soon able to buy
out his partners. With the machine
he made tour of the Illinois fields
and cleared up profit Of $1,000 and
married.
At De Kalb, ILL.,, Isaac Ellwood was
manufacturing barbed wire for
fences. Gates had bought an inter-
est in a hardware store and was sell
ing barbed wire. He went to Mr..
Ellwood and tried to get an interest
in the manufacturing plant. He was
turned down, but managed to get a
Job as drummer for the concern. He
got so many orders and made so
much money on percentage that,
finally, he got an interest in the
plant, and, at once having this, he
began to pool the business Of the va
rious wire-making plants. In this
way he actually founded the present
s90,0O0,000 Steel Wire Trust.
Whenever Gates felt that his
Judgment warranted it, he would
risk his savings on the hope of
doubling them. Whether it was in
a poker game or in the matter of an
an investment he would take his
chance.
He soon became a capitalist and
this combination of wire manufacture
ing plants was put into the larger
fold of the great United States Steel
corporation. It was here that he
ran against J. Pierpont Morgan and
rubbed the fur the wrong way. Mr..
Morgan did not like the speculative
spirit of the westerner and stood out
against Gates being made a member
of the board of the newly formed
Steel Trust. Gates was bitterly dis
appointed. He proceeded on plan
to get even with the king" of Wall
street, and cornered the Louisville
and Nashville railroad stock, road
that Morgan wanted in the great,
widespreading system of roads f.
nanced by his house.
Gates became a big factor in fl
nance and back of him rallied finan-
ciers who came under the general
classification of "the Gates crowd"
The brokerage house of Charles G.
Gates & Son was formed and in New
York: it soon made the record for
hond1ino in nno dow