The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1882-12-16
CORNERS.
Jay Gould Tells What He Knows
About Them.
THINKS THEM ON THE WHOLE A
BENEFIT.

NEW YORK, Dec. 15.-The Senate committee on
grain cor ers met again today. Among the wit
nesses was Jay Gould. He said that he was in the
rallroad business as manager cf railways and had
Deeh snch Tor twenty years. he was familiar with
opeIatlo 8 IN stocks, but not with grain which he
used only for his own CONSUMPTION He was famil-
lar Wild making corners in stocks and also in deal
lngs IN futures In stocks "The roads l am inter-
es eu IN, SAID he, are those which reach the pro-
1uclng districts, Our roads run through Indiana
ono, Illinois, Nebraska, Kansas, Texas and
Corners are made every little while but / cannot
remember the last one. The system of making cor
ners does not inJure the transportation interests
IL makes large markets. On The whole 1 think it
neIps. IL give producers better prices and who
corner, lose. The consumer NAV nav more al
though spectators suffer. The corner Q gineered
~ Chlcago some Two years ago is reported to have
lost mi lions. The fai mers kept back their grain
and they made the money. Western railroads
We're Were not materially affected one way the other
hney zeal without regard to fictitious transporta
uon; recollect recent cornering transact, N in
stocks,the Hannibal aud St. Joe. 1t resulted dis
a. assLousy 70 the man who made 1t for when he got
through with his corner he found he had losr 6is
fortune. was Interested in the Chicago and
Neo1rlnwesfern e1 corner. 1t was selling at rs or 80
orders TO buy all that was sold and when il cot
snort the price ran up 1t resulted carving The
psain ps,G9 up " 70 20 259 and and then it fell back
part with some at $50. 1 do not think
TINS corner had the slightest effect upon the COM
munlty IN general although it may have hurt pri-
yate fortunes of individuals The road was not.af-
Iected in the least. Icannot recall any other cor
nol. no marlem company was before my time
ana the erect OF dealing in futures OF stock upon
the general welfare is insignifc mt owing to the
TACT that few options dealt in. 1 think that
eculatlng tends to do good as it brings money to
this country. The freer your markets are the
more fr edom you give to capital. l would be yery
careful what restrictions put either on stocks or
gram Tor the reasons mentioned. Men who spe ~
late are not those who pow the soil or produ e the
grain Men who speculate do SO for the reason that
It IS their legitimate business If the legislature
were to say that dealing in futures was gambling it
would be gambling but until such time as leg sla-
ton says t is gambling, shall not believe it SO 10
De, supply and demand should govern these spec
uiatlons. think that large prices of grain tend
10 increase immigration and increases the produc-
ton. do not think that any transaction which
can be id to be illegal. 1 don't knog whether
would designate the system of bucket shops as a
pubic evil. People will speculate from your min
ister. barber and baker down. People want TO al
In chance. | don't think there is the amount of
gambling done in this city which formerly existed
am sure nat the specu alton in grain benefits
nome producers. 1t Greats markets all over the
world Last year we had short CT 10. both of
wheat y aud corn We should export over 10u ,OOO,-
uoo Dusneis OF whrat-the system of transporta-
& slon Increases immigration in this way New rail
ROADS are ouit in g. owing cereal districts and rail-
road managers invite immigration.
referring 10 corners in the money mprket Gould
said: o0'i'
such corners soon regulate themselves although
Wnlie tney last the market is depressed. / do not
think trade much affected by it. OF course busi-
ness men become moe circumspect in their dea'-
lngs. Corners in the money market are always pro-
uuoeu , ~ capitasts iocSlng up their money. At
the tal OF the year there is always a scarcity of
money. Generally speaking, corners dealings in
futures and pancs have alike good and bad effects
up commerce in general the after effects are to
make people more economical and more enterpris-
ing 4 do not think it possible to prevent corners
ETC., by any act Of lhgislation and 1 do not think
any national legislation practicable although some
restrictions might be put upon these speculate rs:
say limit OF tllngs. If the board of trade were to
adopt constitutions which would provide that the
setting price should not exceed 10 per cent. the
settling price these extensive fluctuations in corners
could not exist | would in every other particular
make New York as free as the wind.