friends with Josiah K. Lilly, Jr. the President of Eli Lilly and Company. Lilly advised Gates on a number of health care reforms and successfully lobbied Gates to support the construction of three new state-run mental hospital for the insane. The departments of revenue, veterans affairs, and commerce were all created at Gates urging during his term. He also successfully advocated the creation of Shades State Park. Teacher's wages were raised statewide, the Bureau of Motor Vehicles was reorganized to hire employees using the state merit system, and a retirement fund for state employees was started. To fund the new initiatives, excise taxes were raised on beer, liquor, and cigarettes. Using his connections in the American Legion, Gates was instrumental in influencing the organization to move its national headquarters from Washington D.C. to Indianapolis and providing it office space in the World War Memorial building which was expanded to accommodate them. Gates' position on highway construction came to be at odds with the more conservative wing of the party. The federal government offered matching funds to the state to build certain highways, but they feared taking the money would be seen as a sign of going back on their promise to not let the federal government influence them. Gates insisted that it was in the best interest of the state to accept the money and build the highways, but legislature failed to act on his recommendation. Jenners had been behind the movement to stop the highway construction bill, and Gates retaliated by planning to block Jenners from winning the nomination to run for governor in 1948. The Constitution of Indiana prevented governors from serving consecutive terms, barring Gates from running for office again. However, he still controlled the state party and at the state convention in 1948, he was able to unite the three factions opposing Jenners to deny him the nomination. Jenners, who had a two-hundred vote lead in the first ballot, was outraged and never forgave Gates. Gates played a key role in the establishment of Chain O'Lakes State Park in Noble County. He promoted the cause of establishing the park even after leaving office. In 1960, when the park was established, Gates spoke at the opening ceremony. Later life Party leader When Gates left office he resumed his duties as chairman of the state party, and also served at different times in the national party as a