Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-12-16
PUBLIC BENEFITS.
JAY GOULD EXAMINED ON THE SUB
JECF OF GRAM CORNERS

JAY GOULD EXAMINED ON THE SUB |
JECrOF GRAIN CORNERS
He Considers Them of Inestimable Benefit |
to the Mass of the PeOple-And Poses Be
fore the Public as "a Great BenefactOr-
Those Who Run the Corn rs the Prioci-
pal Losers-sone History of the Corners
oftse Past. I
New YORK, Dec. 15.-Jay Gould appeared
before the committee on grain corners this
morning. He said he was in business as
manager of railways and had been such for
twenty years. He was familiar with the
operations in stock but not with grain,
which he used only for his own consump-
ton. He was familiar with making corners
in stocks, and also in dealing in futures in
stocks. "The roads I am interested in,"
said he, care those which reach the produc-
! ing districts. Our roads run though
Indiana. Ohio, Illinois, Nebraska,
Kansas, Texas apa Iowa, The effect Of
making corners is to make an Uneven
transportation. Corners are made every
little while. but ca.nnot remember the last
one. The systcm of making coraers doas
net nlure the transportation interests, as
it makes large markets. On the whole.
think it helps. 1t gives producers better
markets, and they who make the corners
lose. The consumer may pay more, al
though spectators suffer. The corner engin-
eered in Chicago some two years ago is
reputed to have lost millions. The farm
ers kept back their grain, and they
made the money. Western
railroads were not materially affected
one way or the other. They dealt without
regard to fictitious transactions. L recall
the recent cornering transactions in TIE
stocks of the Hannibal & ST. Joe. 1t re-
it. for when he got through with his cor
nars he found he had lost his fortune. l
was interested in the Chicago s NORTH
western corner. 1t was selling at 75G so.
I thought it cheap at that price and M
brokers had orders to buy all that was
sold, and when it got scarce the price
ran up.
1t resulted in carrying the price MP high
to $50, and then it fell back again to so.
l think was induced to part with some at
$50. I do not think this corner had the
slightest effect upon the community in
general, although it may have hurt the pri-
vate fortunes of individuals. The road
was not affected in the least. I cannot re-
call any other corner. The Harlem corner
was before my time. The effect of deal
ing in futures of stock upon the general
welfare is insignificant, owing to
the fact that few options are
dealt in. I think speculation tends
to do good. as it brings many to this coun-
try. The freer your markets are the more
freedom you give to capital. I would be
very careful what restrictions put either
on stocks or grains, for the reasons men-
toned. The men who speculate are not
those who pillow the soil or who produce
grain. The men'who s peculate do SO for
the reason that it is their legitimate bust
ness. If the legislature were to say deal
ing in futures were gambling, it would be
gambling, bul to such time as lepis-
lation says it's gambling, [ shall not
believe it so to be- Supply and de-
mand should govern these speculations.
think large expectations of gra tend
to Increase immigration and increases pro-
duction. do not think any transaction
which draws capital from every center in
Europe here can be said to be illegal.
don't know whether I would designate
bucket shops public evil. People will
speculate, from your minister, barber and
baker down. People want to deal in
chances. [ don't thiuk there is the amount
of gambling done in this city which form
erly existed. l an sure speculation in
grain benefits the home producer. 1t in
creases the market all over the world
Last year we had a short crop OF both
wheat and corn. We should export.over
: 100,00000O bushels of wheat. The system
of transportation increases immigration
In this way new railways are built In these
growing cereal districts, and railroad man
ayers invite immigration. have spent
large sums in the last ten years promoting
immigration. Railroads have been a gre at
motor in promoting it. and the way to do
it is to meet them at their homes, explain
to them what they can do, and point out
to them the many benefits to be derived by
coming to this country. We have gener-
al agent for all q roads. He
employs subordinates. Our terms to i'm
migrants for farms and lands are
usually 10 per cent. and the balance to be
paid in term of years. have frequent
ly supported farmers who suffered from
bad crops, until the new crops were in. I
charge them So to Sc on an acre. They
purchase from eighty to 16O acres and per
haps less. We prefer to have many fami-
lies to those few who purchase large tracts
of land. l go West twice a year and see
the towns which have sprung up in the in
terror. Ireland, Germany. Sweden, Nor
way and Denmark send the most emigrants.
About 100000 acres of land remain un-
used.
Instances have occurred where corners
have been made in the money market.
Such corners soon regulate themselves, al
though while they last the market is de-
pressed. do not think trade is much af-
fected by it. OF course business men be-
come eircumspect in their dealings. Money
was very tight here three weeks ago. Gold
l {lo%