New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-09
JOHN ". GATES DEAD
Continued from frat page.

he became interested in the Braddock Wire
Company. near Pittshurg In 1897 he abb
soroed two other concerns and organized
the Consolidated Steel and Wire Company
which he sold TO the Federal Steel Com
pany I'm 1895 His last big piece Of con-
structve work was the organization in
1897 Of the American Steel and Wire Com
pany, now a part OF the United Steel Cor
poration
In addition to these activities ne was
connected with numerous big deals in rail-
way and industrial stocks that for a gem
Grafton made him an interesting figure in
Wall Street
At his death NJ. Gates numbered among
the directorstes Of which he was a mem
Der the Baltimore & Ohio Railroad Com
pany. The Western Maryland Railroad
Company, the Republic Iron and Steel
Company or New Jersey. the American
Salt Company tho United States Realty
and Improvement Company, the Tennessee
Coal. Iron & Railroad Company. the
Clyde Steamship Company. the National
Bank Of North America. the Texas COM
pany and others
The future fnancier was a farmer bov
born near Turner Junction. m. now West
Chicago in 1856. His father. Asel A. Gates.
was able 10 give the lad nothing but
common school education and a chance TO
work for himself
His FIRST business venture AZ the age Of
sixteen years. was contracting TO musk
neighooring farmers corn From his earn
ings he saved enough to make his first
speculation. He bought third interest in
thrashing machine and happening to
strike year If bumper crops. he made
enough money 10 buy ont his partners.
Near his fathers farm was piece IF
woodland He made the owner an offer FOR
tho timber. agreeing 10 pay for IL as fast
az he sold II for hrewood giving his
thraShng machine as security All that
winter he worked early and late with the
one woodchopper he hired. BY spring tho
wood lot was cleared and the owner paid
in full The budding capitalist had thou
stand dollars in the bank and still owned
his thrashing machine, free NJ incun-
hrance. And this foundation ~ future SIC
cess had beer lsid by the time he was
eighteen wears old
Opened Hardware Store
Then he opened his hardware store and
embarked on the main line Of his career
/
commodity was the newly invented barbed
wire The little shop prospered, and Gates
continued 20 bank profits. all the while
keeping his ewes open for a chance at
bigger things
The chance came with the advent OF
Colonel Isaac Ellvood as pioneer in the
barbed wire business. The Young store
keeper sold out and took JOB with him
wire all through the wheat belt and soon
won reputation as one Of the best
"drummers' on tho road Soon he felt
himself to be in position 10 ask Colonel
Elwood for a share In the profits Of the
business The colonel refused and Young
Gates promptly put ID a wire mill Of his
own. lie was soon dangerous rival Of
his former employer Ellvood brought
suit for infringement Of patents but after
a bitter fight was obliged 10 make peace
The two then became partners. and were
for many years thereafter closely sssso-
ciated
Ot1er rivals now appeared cafes bought
them up and formed trust the nucleus
of the SaDnoHno American steel and Wire
COMPANY His first big fotation was the
Federal Steel. a s1oo oN0NN corporation
That was al the beginning Of the steel
boom following the Spansh-American War.
Then. four months later. came American
Steel and Wire. with ,ao.eoooo0 capital
This entire deal took just a weeks time.
and the Gates crowd all made fortunes
out Of H.
Two wears later the big trust was formed
in the steel trade. but though the Gates
companies went into the merger J. p
Morgan the chief promoter. kept Mr. Gates
Of the board Of directors. Despite Mr.
Morgans opposition however Mr. Gates
rev months later got control of the Louis
Vile & Nashville, sold il through Mr. Nor
gan and cleaned up another fortune.
FIGHT with Morgan.
This spring Mr.. Gates attracted fresh at
tention TO himself the steel situation and
MS enmity toward the house OF Morgan &
Co.. when he appeared before the Stanlev
invest eating committee Of the House at
Washington ard retold the story Of the
United States Steel Corporation. lie de-
scribed the meeting of Mr. Morgan, him
self and others one night and the framing
up Of a plan that would ward off Andrew
Carnegie who, IL was believed, threatened
the stability OF the steel market and the
business of a company Of Mr.. MOrgan's by
active competitive movements.
The Steel Corporation grew ont of that
meeting. and the result was that Mr.. Car
negie received s32o,0)oOOO for his plants, in
stead OF the SSo0O0,Co0 which he had con-
eidered accepting from others previously,
according 70 Mr.. Gates.
This testimony recalled many interest
ing details OF Mr.. Gates's free lance career
in the Street His Republic Iron and Steel
Company on three occasions tore open the
steel market. when. under the leadership
Of the United states Steel Corporation. the
producers We're trying 10 keep ii in hand.
From 1900. when, rs president Of the Amer
lean steel and Wire Company, he was first
in a dominating position in branch II
the trade. until the dissolution Of the Stock
Exchange firm OF g. q. Gates & 60, the
"house OF the twelve partners be was
power i'm the stock market. II was not
until his Louisville & Nashville coup. IN
-co2 that his influence was fully recog
nized. however
Mr. Gatess influence I'm tie railroad
world came for a second time into the
Streets calculations when, in 1906, the Gin
cinnati. Hamilton & Dayton. control OF
which lay IN the hands OF a syndicate man.
aged BY r. p. Hollns & Co, was pur-
chased by J. p Morgan & 90. y was cur
rent report AT the time that the Morgan
purchase had been forced by the belief
that John W Gates and Edwin Hawley
had a plan under foot 10 take over the
property II was said afterward by an as
sociafe Of Mr. Gates that they had aban
doned their plan before the Morgan 90.