The Norfolk weekly news-journal., 1911-07-28
JOHN v. Gates,
SPORT AND
Once Had the Nerve Even to
Buck J. P. Morgan.
YoHN w. GATES, one of the most

" cnn finance. was born on an IL
linois farm In 1855. He had
but brief term OF schooling and early
embarked In the hardware business,
starting small hardware store at
Turner Junction, Ill. He himself has
told something Of his career from this
time on.
Here 1t is, as told by himself to
little group of friends who gathered
about him at round table In the red
room Of the Waldorf-Astoria one even
ing just before he sailed for Europe
several years ago.
First l started travelling for Isaac
l.. Elwood. l erected the first corral
In the state of Texas. hiring men to
help me put 1t up to show the rangers
what use could be made Of barbed
wire. l 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 1t
at salary Of 500 per month. 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 $1,000 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 total Of $780,
600. All these men are still alive. We
declared dividends Of about 80 per
cent per week. Our profits for the
first year were $150,O00. At the end
Of the year l suggested that either
buy out or sell out"
The evolution Of that plant was the
American Steel and Wire Company Of
New Jersey, with capital stock Of
$9O,000,OOO, and the American Steel
and Wire Company Of Illinois, with n
capital Of $24OOO,OOO, with Gates as
chairman Of both. Gates sold out his
interests to j. p. Morgan e. 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 $5-
100000 at that time, and, while he ad.
mitted 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-
tire issue Of stock at from 90 to no,
/ and then the stock jumped to 1870,
when 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 I'm the limelight
was as witness In the steel trust in.
vestigation in Washington when he
convulsed the nation by his descrip-
tion of Andrew Carnegie and his re-
marks on the trusts absorption Of the
Tennessee Coal and Iron company.
| There has probably never been a
fnancier 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.
| Major Charles o. Birmingham Jf
Galveston once admitted that he was
a great friend and admirer of Mr..
Gates and gave som. of hIs reasons