Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1882-12-16
JAY GOULD ON CORNERS.
STOCK SPECULATION A GOOD THING.

Stock SPECULATION A GOOD THING.
Il Erings Better Prices to Pr"ducers, At
tracts Money TO This Country, and Only
Injuries n Few Individuals
Jay Gould appeared as witness before
the Senate committee on grain corners on
Friday. He said he was in the railway
business as a manager Of railways, and
had been such for twenty years. He was
with operations in stocks, but not
with grain, which he used only for his
own consumption. He was familiar with
making corners in stocks and also with
dealing in futures in stocks. "The
roads I am interested in," said he,
''are those which reach the producing
Our roads run through Indiana,
Ohio, Illinois, Nebraska, Kansas, Texas
and Iowa. The effect of making corners
on transportation is to make an uneven
Corners are made every
little while, but l cannot remember the
last one. The system of making corners
does not injure transportation interests,
as it makes large markets. On the whole,
l think it helps. It gives the producer
better prices, and the men who make the
corners lose. The consumer may pay
more, although the spectators suffer.
The corner engineered in Chicago some
two years ago is reported to have lost
millions. The farmers kept back their
grain, and they made the money. West
ern railroads were not materially affected
one way or tho other. They deal without
regard to fictitious transportation. l
recollect recent corneriDg transaction
in stocks-the Hannibal and St. Joseph.
1t resulted disastronsly to the man who
made it, for When he had got through
with his corner he found he had lost his
fortune. | was interested N IT," Chicago
and Northwestern lailrca'i c""ner. Ih.
stock was selling 1T - to 50. | thought
it cheap 1T that price, aud my brokers had
orders to bus 81! that was sb!d. When
the stock got short tie price ran up to
$50 and then fell back to 80. think
was induced to part with some at go. |
do not think this corner had the slightest
effect upon the community in general, al
though it may 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 in futures Of
stocks upon the general welfare is iGsig-
niiicant. owing to the fact that few options
are dealt in. think speculation tends to
do good, as it brings money to this coun
try The iercer your markets are tue
more freedom you give to capital. lwcuid
be very careful what restrictions | put
on either socks or grain, for the reasons
mentioned. Tie men who speculate are
not those who plow the soil or produce
the grain. The mcn who speculate do SO
for the reason that it is their legitimate
business.
eff the Legislature were to say that
dealing in futures was gambling it would
be gambling but until such time rs leg
islation says it is gambling | shall not be
lieve it to be. Supply and domand should
govern these speculations. Instances have
occurred where corners have been made
in the money market. Such corners soon
regulate themselves, although w.,i'e they
last the market is depressed. l do not
think that trade is much affected BY
them. OF course, business men bsc)me
more ciycumspect in their dealings.
Money was very tight hero three weeks
ago Gold certificates were used on that
occasion. Corners in the money market
are rot always $ produced by ca pitalists lock
ing up their money. In the fall Of the year
| there is always scaicity Of money. AN
! not familiar with corners either in The oil
| Or cotton trade. l am not engaged in the
banking business. Generally speaking, cor.
ners, dealings in futures and plnicS have
alike good and bad effects upon commerce
in general. The after effects arc to make
people more economical and more enter.
prising. lido no: think it possible to pre-.
| vent corners, ctc., by any act of !e, slatiOr
| and do not think that any nationa
legislation is practicable; although Some
| restrictions might bo puS upon these
specu!aticns-say limit the price OF things
| Ii the board Of trade were to adopt rules
which would provide that the settling
| pricc should not exceed 10 pr cent. of the
| selling price these extensive fluctuations
in corners could not exist. | would in
every other particular make New fcri
as free as the wind
Several Houses Burned and Number o
Poor Families Left Homeless.
| At Besscmer, Pa in a two-story frame
house owned by Daniel Duii'y and occu
pied by Duffy and Barney Farrer, lamI
in the hands Of little girl exploded anc
set fire to the building. The flame.
spread SO rapidly that it Was with the
greatest difficulty that Mis-. Duffy. wnC
was sick. could be removed. Very Little
of the contents OF the building was saved
Adjoining the Duffy house wecc tive
small two story dwelling houses, one not
occupied, owned by Michael Coyrc. The
other was occupied by 5 ssic family
named Washkof. Both buildings took
fire and in less than half an hour were in
ashes. Adioiuing the Coyne building was
a large two-stmy frame tenement house
owned by p. McGow4n, Of Hraddpck, and
occupied by =. Fincrtv, Max Misccwi.ch
David Chambers and their families II
this building all the household goods
were saved. Next to this there was q
small one-story building, owned and occu
pied by Mrs. Hickey, 4 wido~. The
building was torn down to prevent the
further destruction of property.
! The losses, as near as can be learned,
are Duffy's house, worth 1,000 insured
for $500; n. Coyne. two buildings, 81, ,00G,
no insurance McGowan's house 81 600,
81, 200 insurance Mrs. Hickey, house torn
| down, 5000; no estimate can be placed
| upon the loss OF household goods Barney
Farran had % pounds 10 shillinss, and
$40 III currency, the lost amount being his
last months wages, paid him yesterday,
all of which was placed in a satchel and
hung on the wall. All was lost. The
flames spread SO rapidly that it was with
difficulty his wife and three children were
gotten out alive.
Fires In Other Places.
The loss by the fire at Hickman, Ky,
OH Thursday morning, is estimated at
| 500, 900. Three business blocks were de-
stroyed.
The railroad spike mill Of Ames, Bell &