GATES, JOHN WARNE

born May 8, 1855, Turner Junction, Ill., U.S. died Aug. 9, 1911, Paris, France American financier and steel magnate who leveraged an $8,000 investment in a barbed-wire plant into the $90,000,000 American Steel & Wire Co. Dissatisfied with his partnership in a country hardware store at the age of 19 and impressed with the possibilities of a new product known as barbed wire, Gates became a traveling barbed-wire salesman. To convince the doubting Texas cattlemen of the value of his fencing wire, Gates dramatically challenged the ranchers to test his product by enclosing their wild range steers in a barbed-wire corral in the middle of San Antonio. The stunt was a success, and he immediately sold hundreds of miles of wire. With $8,000, he and a partner launched their own wire plant. Gates bought out his partner in 1880 and began the Southern Wire Co. In 1882 he merged with his major competitor, creating the Braddock Wire Co., which quickly acquired many of its smaller rival firms. Gates formed the American Steel & Wire Co. of Illinois in 1897 with a capital of $24,000,000 and then the American Steel & Wire Co. of New Jersey with a capital of $90,000,000. With a virtual monopoly on barbed wire, Gates used his huge fortune to acquire interests in other industries. His bold investment approach to the stock market earned him the nickname of Bet-A-Million Gates. His investments also included iron, steel, railroads, and extensive real estate holdings in Texas. He virtually owned the city of Port Arthur, Texas, which he helped transform from a frontier watering hole to a major Gulf port city.