The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1882-12-21
JAY GOULD
Pretends to Tell What He Knows
About Grain Corners.

New YORK, Dec. 15.-Jay Gould
appeared before the committee on
grain corners this morning. He said
he was in the railroad business as
manager of railroads, and had been
such for twenty years. He was
familiar 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 in dealing in futures in stocks.
"The roads | am interested IN" said
he, "are those which reach producing
districts. Our roads run through
Indiana, Ohio, Illinois, Nebraska, Mis-
souri,, Kansas, Texas and Iowa. The
effect of making corners is to make
an uneven transportation. Corners
are made every little while, but l can
not remember one. The system of
making corners does not injure trans
portation interests, as it makes large
, markets. On the whole, think it
helps to give producers better prices,
and they who make corners lose. The
consumers may pay more, although
spectators suffer. The corner
that was engineered in Chicago
some two years ago is reputed
have kept back their grain and they
have made the money. Western rail-
roads were not materially affected one
way or the other; they dealt without
regard to fictitious transactions.
recollect recent cornering transaction
in stocks-the Hannibal and st. Joe
which resulted disastrovsly to the
man who made it, for when he got
through with his corner he found he
had lost his fortune. was interested
in the Chicago and Northwestern
corner. 1t was selling at 70 or 50, anC
1 thought it cheap at that price, anC
when it got scarce it resulted in car
rying the price as high as 250 anC
then it fell back again to 80. think
l was induced to part with some a
250. / do not think this corner ha(
the slightest effect upon the commu
nifty in general, although it may hav'
hurt private fortunes. The road wa
not affected in the least. cannot re
call any other corner. The Harlem
corner was before my time. The effec
of dealing in futures of stocks upol
, the general welfare is lnsignifi
cant, owing to the fact that fey
options are dealt in. l think specula
tfon tends to good, as it brings none
to this country. The freer your mai
J kets are the fuller freedom you Civ
to capital. l would be very careful
what restriction l put on either stock
or grains, for the reasons mentioned
: The men who speculate are not thos
| who plow the soil or produce tn
, grain. The men who speculate do S
for the reason that it is their legit
. mate business. If the legislature wei
to say dealing in futures was gan
: bling, it would be gambling; but unit
: the time such legislation says 1T
!, gambling shall not believeit so to b
: Supply and demand should goveI
' these speculations. think large IL
: portations of grain tend to increa:
4 immigration and increase productio
/ do not think any transaction whit
draws capital from every centre
d Europe can be said to be illegal.
r don't know whether would designa
= a system of bucket shops public ev
' People will speculate, from yo
/ minister. barber and brok
y down. People want to deal in chanc'
: do not think there is the amount
: gambling done in this city which fl
merly existed. l am sure speculate
u in grain benefits the home produc
, 1t creates markets all over the wor
II Last year we had short crop of bo
wheat and corn. We should expo
over 100000 bushels of wheat. 7
system of transportation increases i
d migration in this way. New "a
j Dads are built in these cereal groWi