Editing Barbed wire (section)

=== Promotion and consolidation ===

In the late 1870s, [[John Warne Gates]] of Illinois began to promote barbed wire, now a proven product, in the lucrative markets of Texas. At first, Texans were hesitant, as they feared that cattle might be harmed, or that the North was somehow trying to make profits from the South. There was also conflict between the farmers who wanted fencing and the ranchers who were losing the [[open range]].<ref name="Krell" />

Demonstrations by Gates in [[San Antonio]] in 1876 showed that the wire could keep cattle contained, and sales then increased dramatically. Gates eventually parted company with Ellwood and became a barbed wire baron in his own right. Throughout the height of barbed wire sales in the late 19th century, Washburn, Ellwood, Gates, and Haish competed with one another. Ellwood and Gates eventually joined forces again to create the American Steel and Wire Company, later acquired by The [[U.S. Steel]] Corporation.<ref>Joseph M., McFadden, "Monopoly in Barbed Wire: The Formation of the American Steel and Wire Company." ''The Business History Review'', 52, 4, 1978, p. 2.</ref>

Between 1873 and 1899 there were as many as 150 companies manufacturing barbed wire. Investors knew that the business required minimal capital, and almost anyone with determination could profit by manufacturing a new wire design.<ref>Joseph M., McFadden, "Monopoly in Barbed Wire: The Formation of the American Steel and Wire Company." ''The Business History Review'', 52, 4, 1978, p. 5.</ref> There was then a sharp decline in the number of manufacturers, and many were consolidated into larger companies, notably the American Steel and Wire Company, formed by the merging of Gates's and Washburn's and Ellwood's industries.

Smaller companies were decimated because of economies of scale and the smaller pool of consumers available to them, compared to the larger corporations. The American Steel and Wire Company established in 1899 employed vertical integration: it controlled all aspects of production, from producing the steel rods to making many different wire and nail products from that steel. It later became part of U.S. Steel, and barbed wire remained a major source of revenue.<ref>{{cite web|url=http://files.usgwarchives.net/la/winn/bios/edenborn.txt|title=Greggory E. Davies, William Edenborn of Winn Parish, La.|publisher=files.usgwarchives.net|access-date=March 26, 2014}}</ref><ref>Glen Coleman, great-nephew of [[William Edenborn]], wrote ''The Man Who Fenced the West'' about his uncle's accomplishments regarding barbed wire.</ref>