The citizen. (Honesdale, Pa.) 1908-1914, 1911-07-21
Once Had the Nerve Even to
Buck J. P. Morgan.
YOHN W. GATES, one of the most
picturesque figures in Amerl-

but brief term Of schooling and early
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 on.
Here it 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 it up to show the rangers
what use could be made of barbed
wire. 1 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 salary of 500 per month. l had
q 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 very
small way. 1 think we had three barb
ed wire machines. Our total invest
ment was less than $4,000 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 J. w.
Gates e. Co., into which eight of us
put each $1,000, making a total Of $20,
0OO All these men are still alive. We
declared dividends of about so per
cent per week. Our profits for the
first year were $15O,OO0. At the end
of the year l 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 q capital stock Of
$90,000,000, and the American Steel
and Wire Company Of Illinois, with
capital Of $24,OOO,O00, with Gates as
chairman Of both. Gates sold out his
interests to J. p. Morgan 6, Co. when
the United States Steel corporation
was formed, drawing down many mil
lions in cash, bonds and stock.
Unly 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 98 to 11O,
and then the stock jumped to 100,
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
mis- latest appearances in the limelight
was as witness in the steel trust in
vestigation 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
financier in America about whom SO
many good stories were told as John
w. Gates. A good story teller him
self, his sallies We're alike popular In
Wall street, at the race track, before
tho far 10 hIac or puharouar oood eno,4,
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 al
over the earth, especially in New York
and Europe.
Flipped Coin For $4,000.
Major Charles o. Birmingham Of
Galveston once admitted that he was
a great friend and admirer of Mr..
Gates and gave some Of his reasons.
In the smoking compartment Of train
on his way to Asbury Park he regaled
a group of men with a story about
Mr.. Gates.
''Mr. Gates is surely a dead game
SPORT" he said, "and have been much
amused to learn that some of his Tex
as friends want to run him for con-
gress. If he runs In that district he
will be elected hands down. The 9th
er day he paid a short business visit
% a Texas town and endeared him
self to the hearts OF the local popu-
lace.
"Some of the gamesters of the town
heard in advance that Mr.. Gates was
coming and prepared to furnish lit
tie entertainment and excitement
They raised a poker pot of $4,000.
"'All right, boys said Mr.. Gates
y really haven't the time to play
poker for that roll of money, but I'll
tell you what I'll do. I'll match you
for It,
''There was hasty consultation, and
the delegation agreed to the proposal
Mr.. Gates pulled out half dollar and
slapped it down on the table saying