The evening light. [volume] (San Antonio, Tex.) 1881-1883, 1882-12-16
CORNERS AND FUTURES.
Gould, the Grabber, Givos his Opinion of
Them to a New York Committee.
Doubt About Designating tho System of
Bucket Shops a Public Evil.

Jay Gould appeared before the committee on
grain in New York yesterday and told what
he knew about corners.
He said he was in the railroad business as the
manager of railroads. and had been such for
twenty years. He was familiar with opcr-
utiOnS in stocks, bui not with grain, which he
used only for his own consumption. He was
familiar with making corners in stocks and also
in dealing in futures in stocks The roads am
interested in he said, ARE tADse which reach
producing districts. Our roads run through
Indiana, Ohio, Illinois. Nebraska, Missouri,
Kansas, Texas and Iowa The elect OF making
Corners are made every little while, hut cam
not remember one. The system Of making cor
ners does not injurc the transportation inter
cSts, as it makes large markets. ON
ducers better prices, and they who make
the corners lose. The consumers may pay
more, but the spectators are the ones who
suffer. The corner engineered III Chicago some
two years ago is reported to have lost millions.
The farmers have kept back their grain and
they have made the money. Western railroads
were not materially affected, one way or the
other. They dealt without regard to fictitious
transactions. ! rccOllcct a recent cOrnering
transaction in stocks of the Hannibal st. Joe.
1t resulted diSiiStrOuSly to the man who made
it, for when he got through with his corner he
found he had lost his fol tune. | was interested
in the Chicago and Northwestern corner 1t
was selling at sevcnty-tive or eighty cents.
thought it cheap at that price, and when it got
scarce, it resulted in carrying the price high
to 81 .5O-and then it fell back again to eighty
cents. think was induced to part with some
ut $50. do not think this corner had the
slightest effect upon the community in general,
although it may have hurt the private fortunes
of individuals. The road was not affected in
the least. [ cannot recall any other corner.
The Harlem corner was before my time. The
effect Of dealing III futures of stocks, upon the
general welfare, is insignificant, owing to the
fact that but few options are icalt in.
think speculation tends to good, as it brings
money to this country. The frcer YOU make
this, the more freedom you give to capital.
would be very careful what restriction | put
on either stocks or gains for the seasons men
toned. The men who speculate are not those
who pillow the soil or produce the grain. Ih"
men who Speculate do so for the reason that it
is their legitimate business. If the legislature
was to say, dealing in futures is gambling, il
would be gambling. But until the time that
such legislation says it is gambling, shall not
believe It so to be. supply and demand should
govern these SpecuiatiOns. | think the large
explorations of grain tends to increase mmi-
grafton and increase the production. | do not
think any transaction which draws capital
from every center in Europe can be said TO b"
illegal. don't know whether | would desig-
nate the system of bucket shops u public cVi.
People will Speculate, from your minister, bar
Der and baker down. The people want to deal
in chances. don't think there is the amount
of gambling done in the city which former
ly existed. am sure speculation i'll
grain benefits the home producer. 1t creates
markets all over the world. Last year we had
short crops Of both wheat and corn. We should
export over 100000, go bushels of wheat. Tho
system OF transportation increases immlgTl-
ton in this way: New railroads are built III
these growing cereal districts, and railroad
managers invite immigration. have spent
large sums of money i'll tho past ten years III
promoting imm igrttlon. The railroads. have
been the great motors III prOmrting ii, and the
way to do 1t is 10 meet part les their homes,
and there point OiIi 70 1hrm what they can do,
and point out To them the many benefit 70 be
derived 10y coming to this country. We nave
general agents for all the roads He c!nfi ry$
subOrdinntes. Our terms to immi-rantS for
farms ana lands are usually ten years, and bal
unce to be paid in term of years. ! have fire.
qucntly supported families who suffered from
bad crops until new crops came in. ! charge
from three three dollars to SIX six dollars al
perhaps less. We prefer to have many fam
lilies to those few who purchase large tracts OF
land go west twice Il year and see the towns
which ha. sprung up i'll the interior. Ire
land, Germany. sweden, Norway and Denmark
send most of the immigrants. About U,UO,-
wv acres OF our lands are still remaining I'M
sold.
"InstanccS have occurrciwherc corners have
been made in the money market. Such cor
ncrs soon regulate themselves, although,
while'thfy last, tn" market IS depressed, but
do not think trade is much effected by it. OF
Spect in their dealings Money was very light
mere three weeks ago. Gold certificates wcr"
used on that OCCASION Corners in the money
market are not always produced by capitalists
locking up their money. In the tall of the
year there is always scarcity OF money. am
not familiar with corner either i'll oil or cot
ton. am not engaged in the banking bust
ness. \ panic is when men lose their wits.
This is generally preceded by II corner or gen
cral diStrust. Men i'll panic times lose their
reason and rush to sell The first panic was in
lS51, and was caused by Tylcr's frauds and the
discovery that there had been an over ISSUE Of
New Haven stock. PanicS have their good eff
feet, as well As their bad. The second panic. at
the time of the civil war,wlS caused largely by
the breaking ont of the war