New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-16
STATE SENATE INQUIRIES.
THE EVILS OF CORNERS AND FUTURES.
A WIDE RANGE OF TEsTIMoSY-JAY GOULD THn
PRINCIPAL WITNESS.

widely divergent charaeter-from clergy
man who protested that be spoke without
personal knowledge OF the subject, having neither bt
Others been Bitten" and who presented the morai
aspec. % he conceived IT, and from number
Of men who were give their personal experience
the manipulation OF the very peculiar transac-
tons lIuder investigation. The clergyman was
the Rev. john J. Reed, pastor OF
the Washington Square Methodist Episcopal
Churchwh brought proofs from HoIwrt to snow that
stock gambling and grain gambling are immoral repre-
hensibe and unscrptura He called attention TO the
antiquity and the early condemnation or the practices
by reclting He that wthhodeth corn, the
people shall him. but blessing shall be on the head
Of him that seeth it"-Provcrbs Ii, %; and these
Hear ths, o ye that swallow up the needy, even TO
make the poor Of the land 20 fall saying, When viii tho
new be gone that may sell corn and the Sab
bath that may forth wheat. making the ephah
small shckel great and falsiying the balances
by deceit l'-AmOs viii, g. ..
After the Rev Mr.. Reed had spoken Solomon Dreyfus,
an exportcr Of grain, enlightened the committee
on some Of results of CORNERS" Whea accumulated
in thei manipulation, he said, frequently went out OF
The country at handsome proit TO the exporter, tao
makers the CORNERS" sc INK II condition that IL
should be shipped out Of the country, at from to 20
cents q bushe less than the MARKET price Thus, last
month solI for export aud for actual consump
ton for 90 cents bushel while "shott
sellers had to settle at 81 10. Through
opertions OF this kind occurred, too that American
wheat cheaper in Europe after the added charges OF
freight and Insurance. than the speculative price here
Mr. Dreyu criticised the system o inspecting and grad
ing as carried on under the Grain Committee Of tho
Produce Exchange, aud sad that 1t had re-
suited in driving the export business 10
other ports where better systems prevailed. Repre-
sentatyes of the STANDARD Oh Compan" came into the
room while Mr. Drey fus speaking, and Jay Gould,
accompanied by his George, also entered and be-
came listener. lie sent his card 10 tie chairman OF
the committee and called to testify as soon as
Mr. Die fus had finished. lie sank back comfortably
into tue cushions armchair Immediately after no
bad aken the OATH and began his answers Ia low, con-
vorsat tone which greatly embarrassed the Official
stenograpner and the reporters. Gradually all
the men i'll the room gathered around
the witness, hemmng him in closely en-
every side Thus they renamed craninS forward 10
eaten the words they fell gently aud easily from his
fps t is feared) vain hope 10 learn OF some OF the
inner workings OF the great speculative movements
which the speaker credited with directing
TESTIMONY or JAY GOULD.
Mr. Gould spelled his name FOR the benefit OF tie COM
mittee and 10 the preliminary questions answered that
his business tnat of manager OF railroads and had
| been for upward OF twenty years. The examination
| then proceeded us follows:
"AIe you familiar with the system of making corners
| in gain and other cOmmoiities!'
"Imay say that | am familiar with stocks l never
| dealt in grain except for my own consumption
''Are you familiar with the system Of making corners
| in stocAs!"
| Eyes. SIR"
Are You familiar with dealings in futures in stocks,
| grain or other merchantaOo eommolitiesP -
81 avn familiar Wlh such deal! gs DGJ lhere Is very
| little done ia futures with stocks" 80
VIA you please your Opiuon CT the whole sys-
TEN OF making and dealing III tntnfes Win REFER
its effect upon commerce ana It's influence upon
INV impression about the effect OF that IS that IL
makes very large markets here aud as the world IS now
connected with cables and tee erap1s, these markets at
| tract foreign capital European buyers who formerly
| we're oOiigel TO go oat into the West where
am Interested reach the producing districts; so
M, say tG deal with the producers rather than tho
through what sections of the country do your roads
| "Turougn Indiana, Ohio, Illinois. Missouri Iowa,
| Kansas, Nebraska, Arkansas and Teas A.
WHAT eff .cl mas the system OF maSnS corners on tho
| rae only effect that il may b. to make uneven
transportation. These fictitious transactions the rail-
roads never carry tney transactions on paper We
on, carry actual products This may be facilitated
! or retarded according to the terminal markets."
"Do you recOect any corners tat have been made In
| gram within the last few years g.
nitude." - ,-..
mo, sir think not IL make large markets and as
rce r6e men Who make the corGers lose because the
farmers Learned how TO take advantage OF them
'What effect mas Il ON the cOnsumerW
"Well, L think the consumer perhaps pays more.
That's my observation. The Losses usually fall on tho
| -"Can you give an instancep
There corner engineered some two years ago
| by persons in Chicago reputed to have made
very large losses-seyeral millions have no knowl-
gam .th tGe sent It in and made money on it,"
Dld the Western railroads reap any advantage from
"Tney neither, except ~ you may cay, the rail-
road carries little less Today and little more to-
morrow. Tney carry only tue actual grain produced
millions OF fictitious transactions tnat may occur
40 Won recoect any receut corner in stocks n
e" remember the corner last fall in Hannibal aud
DIN vhot manner wa that corner effected \"
at resulted very dsasrousy. The men who made 10
more tsy GS wSs t1s
ney mad il on their hands and had no market Tor IT
II was interested in the Chicago ana Northwestern"
"WIll You please explain about that cOrnerr
Chicago Northwestern selling at from 75 70
80 considered 1t cheap at that price and commenced
SroNers had orders to 6Gy all ,hst sold ana beiors
| was Then tne price ran up. didn't put Il up. I
bought II for what thought 1t worth The price
| went up and afterward fell back to about ~"
{" think /, went up to $50. 1 was induced to part
v ith some at about that price"
What effect did that corner have on commercial in
don't think 1t had the slightest effect on the CON-
mcrcial interests of the country"
How cid affect the private fortunes of the persons
- don't know. I cantsy."
&" We're there any bankruptcies resulting from itr
coudn't pay We settled vito al "a less price, -,
~ hat effect did II have ON the road itselfF
"Not slightest"
"DO you know VI any other corners ~
81 don't Cniuk OF any other at this moment There
was the Harlem corner; but tnat was before my time
THE MORE SPECULATION THE BETTER
What In your opinion is the effect OF tho sale OF
futures as carried New York the general welfare
OF the country :"
"Tnere is very little dealing in futures at the Stock
pxcbopgo. the rules allow sixty days options. 1t
was done 10 much greater extent In hygone years"
What was their effect them
,hilk tnat everything tends to facilitate spec
plaon really benefits the country IL draws capital hero
fhaNy ytllf