The Wichita city eagle. [volume] (Wichita, Kan.) 1872-1883, 1882-12-21
GOULD ON CORNERS. 2


NEW YORK, Dec. 1G.-Jay Gould appear
ed before the commission on grain corners
this morning. He said he was in the rail-
road business as manager of railways and
had been for twenty years ; he was familiar
with the operations in stocks, but not with
grain, which he used only for his own con-
sumption he was familiar with making
corners in stocks and also in dealing in "fu-
lures" in stocks. 1.-THE roads l am interest
ed in,'' he said, .are those which reach pro-
ducing districts. Our roads run through
Indiana, Ohio, Illinois, Nebraska, Kansas,
Texas and Iowa. The effect of making
corners are made every little while, but
cannot remember the last one. The system
Of making corners docs not injurc transport
tation nor interests, as ii makes large mar
kets. On the whole, think 1t helps. 1t
gives producers better prices than they who
make corners. The consumer may make
more although Spectators suffer. The corn
err engineered in Chicago some two years
ago is reputed TO have lost millions. The
farmers kept back the grain and they made
the money western rail, ,ys were not much
effected one way or the uer. They dealt
without regard to fictitiout transactions. /
recollect recent corr erin tt transaction in
the stocks Of the Han nibal & st. Joe. 1t re-
suited disastrously to the n an who made it,
for when he got through with his corner he
found he had lost his fortune. 1 was inter-
ested in the Chicago & Northwestern corner.
1t was selling at 70 or 80 cents. thought it
cheap at that price and my brokers had Or
ders to buy all that was sold, and when it
got scarce the price ran up. II resulted in
carrying the price up as high as $3.50, and
then it fell back again to so cents, think
was induced to part with some at $3.50; 90
not think this corner had the slightest effect
upon the. community in general, although it
may have hurt the private fortunes OF indi-
viduals. The road was not affected in the
least: l cannot recall any other corner The
Harlem corner was before my time. The
effect OF dealing in the futures of stock up
on the general welfare is Insignificant, ow-
ing 10 the fact that few options are dealt in.
think speculation tends to do good, US it
brings money TO this country. The freer
your markets are, the more freedom you
give to capital. | would be very careful
what restriction l put either on stocks or
grains for the reasons mentioned. The men
who speculate are not those who plow the
ground or produce the grain. The men who
speculate do so for the reason that it is their
Legitimate business. Ii legislation were to
say the dealing in futures were gambling, it
would be gambling, but until such time as
legislation says it's gambling shall not be-
lieve it SO to be. Supply and demand should
govern these speculations. | think large
expectations Of grain tends to increase inn
migration and increase production. l do not
think any transaction which draws capital
from every center in Europe can be said TO
be illegal. l don't know whether / would
designate system of bucketshops a public
evil. People will speculate. All classes Of
people want. to deal in chances. don't
think there is the amount of gambling done
in this city which formerly existed. 1 am
sure speculation in grain, benefits home
producers. 1t Greats markets all over the
world. Last year we had short crop of
both wheat and corn. We should export
o'Si iuV,uVV,VuV vi Wututs uc sNS-
TEN of transportation increases immigration
in this way-new railroads are built in these
growing cereal districts and railroad mana
gers invite immigration. 1 have spent large
sums Of money the past ten years in promot-
ing immigration. The railroads have been
moter in promoting it, and the way TO 90
1t is to meet parties at their own homes and
there explain TO them what they can do, and
point out to them the many benefits derived
by coming 10 this country. We have gen.
eral agent for all the roads. He employs
subordinates. Our terms to emigrants for
farms apd lands are usually ten per eent. and
the balance to be paid in q term of years. 1
have frequently supported families who SUIT
Tered from bad crops until new crops came
in. l charge them from SO to SO per acre
they purchase from so to 100 acres. and per-
haps less; We prefer to have many families
to these few who purchase large tracts of
land. l go west twice q year and see the
towns which have sprung up in the interior
Ireland. Germany, Sweden, Norway and
Denmark send most of the emigrants.
About thirty million acres of our land re-
mains unsold.