Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-12-16

New YORK, Dec. 15.-Jay Gould appeared
before the committee on grain corners this
morning. He said ne 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, "are those which reach the produc-
ing districts. Our roads run through
Indiana, Ohio, Illinois, Nebraska,
Kansas, Texas and Iowa. The effect of
making corners is to make an uneven
transportation. Corners are made every
little while, but cannot remember the last
one. The system of making corners does
not injure the transportation interests, as
it makes large markets. On the whole, I
think it helps. It 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
one Way or the other. They dealt without
regard to fictitious transactions. [ recall
the recent cornering transactions in the
stocks of the Hannibal &'St. Joe. It re-
sclted disastrously to the man who made
it: for when he got through with his cor
ners he found he had lost his fortune. 1
was interested in the Chicago & North
western corner. 1t was selling at 1880.
l thought it cheap at that price and my
brokers had orders to buy all that was
sold, and when il got scarce the price
ran up.
It resulted in carrying the price up high
to ESQ, and then it fell back again to So
I 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. 1 cannot re-
call any other corner. The Harlem corne,
ing in futures of stock upon the genera
welfare is insignificant. owing to
the fact that few options are
dealt in. 1 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. 1 would b.
very careful what restrictions put eithel
OIL stocks or grains, for the reasons men
toned. The men who speculate are no
those who pillow the soil or who produc.
grain. The men who speculate do so TO
the reason that it is their legitimate bust
ness. If the legislature were to say deal
ing in futures were gambling, it would b.
gambling, bu7 to such time as legis
lation says it's gambling, shall no
believe it SO to be. Supply and de
mand should govern these speculations
think large expectations of gra ten,
to increase immigration and increases pro
duction. do not think any TRANSACTION
which draws capital from every center il
Europe here can be said to be illegal.
don't know whether 1 would designate
bucket shops public evil. People will
/ speculate, from your minister, barber an
baker down. People want to deal il
. chances. [ don't think there is the amour
of gambling done in this city which form
erly existed. l am sure speculation il
> creases the market all over the WORLD
Last year we had short crop of bot
, wheat and corn. We should export owe
1OO,OOO000 bushels of wheat. The syster
, of transportation increases Immigration
In this way new railways are built In thes
growing cereal districts, and railroad mar
ayers invite immigration. have spen
large sums in the last ten years promotin
: immigration. Railroads have been a grea
motor in promoting it, and the way to d
it is to meet them at their homes, explai
, to them what they can do, and point GU
}, to them the many benefits to be derived b
, coming to this country. We have genel
al agent for all roads. II
employs subordinates. Our terms to i'm
Il migrants for farms and lands ar
}, usually 10 per cent. and the balance to b.
paid in term of years. I have frequent
t ly supported farmers who suffered fror
bad crops, until the new crops were in.
9 charge them So to Sc on an acre. The
: purchase from eighty to 16O acres and pei
> haps less. We prefer to have many fami
:. lies to these few who purchase large tract
, of land. 1 go West twice year and Sc
} the towns which have sprung up in the in
I terror. Ireland, Germany, Sweden, Nor
way and Denmark send the most emigrants
About 100000 acres of land remain IN
!. used.
: Instances have occurred where corner
have been made in the money market
Such corners soon regulate themselves, al
though while they last the market is de
pressed. I do not think trade is much at
fected by it. OF course business men be
3 come circumspect in their dealings. None,
was very tight here three weeks ago. Col
certificates we're used on that coca
{ sion. Corners in the money mar
ket are not always produced b,
, capitalists looking up their money. Il
the fall of the year there is always scar
city of money. 1 am not familiar will
corners either in the oil or cotton trade.
am not engaged in the banking business
A panic is when men lose their balance
This is generally preceded by a corner O.
general distrust. Men in panic times los,
, their reason and rush to sell. The frs
panic was in 1857, caused by Schuyler
frauds the discovery that there had beer
an. over-issus of New Haven stock. Panics
have their good effect as we'll as their bad
The second panic at the time of the civi
war was caused largely by the breaking