The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-09-06

|
system the whole management of these great
interests would be subject to change. and the
particular political party then in power"
| Mr.. Gould also thought that the mail
| service would be better accomplished by prl-
vate enterprise than by the government. He
would not object to the government taking
| hold of the telegraph system of the Western
| Union if it would pay for it what it was
! worth on fair appraisement, but, i'll his
opinion, it would not be success.
UNIFORM TARIFFS.
Uniform tariffs could be secured under a
private enterprise as we'll as under govern
ment supervision, and the Western Unions
policy tended to accomplish this. In New
York State there is uniform system of
rates. There could be no lasting competition
against the Western Union on account of
its great facilities. When there were pow
erful rivals the rates were not re-
duced because the competition was
obliged to charge rates as high as
the Western Union in order to live.
Mr. Gould said that this had been his expe-
rence, and if any one thought he could do
better than himself he was certainly at lib
erty to try. The value of the stock in a cor
poration depended upon its earning power.
There might be water in the Western Union,
but the same could be said of all kinds of
property which had increased in value.
Though the government had a right to fix
limit beyond which the profits of the COM
pany could not go, so long as the rates were
not unreasonable, it had not the right, under
republican institutions, to take away private
! property from it's citizens without just COM
! pensation.
Senator Blair inquired whether he could
| give an approximated estimate of the value
of the Western Union Company.
| Mr.. Gould replied that this would be i'm
possible, as he was not in position to give
such an estimate He did not trouble him
self with details, but judged of the value of
property on broader basis that being its
chises possessed by the company
at present could not be estimated by any
| known means Contracts with the railroads
had been made under varying circumstances.
THE TELEGRAPH AND THE COUNTRY.
The growth of the telegraph system repre-
sented the growth of the country, and was
progressing more rapidly than most people
imagined. He thought per cent. was fair
estimate of the earning power of the Western
Union. If the people thought they were
getting too much they could buy the stock.
The stock of all safe paying enterprises was
being distributed all over the country. This
class OF investors held about $6O 600, 900 of
the Western Union Telegraph Company
stock, which was continually becoming
scarce in the market. Within two years,
| Mr.. Gould thought, the remaining shares
now upon the market would be absorbed by
investors. He was glad that this was so for
it indicated prosperous condition of affairs.
lie did not think there was as
much water in the stock of the Western
Union as in many other companies. The
The value OF the Western Union was very
nearly equal to its capitalization. A rail-
road like the New York Central probably
could not be duplicated for its present capt.
talization.
Don't you think that the New York Cen.
tral cost more than it would sell for?" asked
Senator Blair.
81 don't think my opinion on that sub
iect would be very valuable" replied Mr.
Gould. AT any rate, l do not think
should care to buy New York even if l could
get plenty of corner lots'
Mr. Gould stated that he did not think it
was possible for a company to get an ex-
elusive privilege, for, in the case of any rail
road, another could be constructed along
side, if sufficient number of wise
men or fools could be found who
would put their money into the enterprise
Eventually, however, the stronger roads
would always swallow up the weaker In all
the lines controlled by him in the West the
rates for fares and freights were regulated by
State statutes. In many cases. however com
petition reduced the rates charged below the
limits fixed by law. Mr. Gould declined to
specify the railroads whose capitalization was
| greatly in excess of the cost of construction
or real value. He did not believe in govern
ment interference, as the rates would almost
always be regulated by competition.
THE POOL SYSTEM.
The system of pooling had undoubtedly
saved great many corporations from being
injured seriously Its effect was merely to
protect roads entering into the pool from
ruinous competition. A pool
could not affect rates verv
materially accounto of the various elements
which entered into the system. There were
outlets by way of the Mississippi river the
canals and the lake routes and Canada rail-
road routes for freights, and with these in
existence rates could never be maintained
beyonda certain point. He explained in a
general way the pool system as it at present
existed, after which the committee took
recess until 2 p NJ.
| When the afternoon session began Mr.
Gould continued his testimony.
DO you think that the price of food is in
| t1uenced by stock speculation or speculation
in food products?'' inquired Senator Blair
1T might TO certain extent increase the
price for a short period" replied Mr. Gould;
/ but the supply and demand will always
regulate these things and keep up a
balance. If there is a large crop the
price will be SO much below the average that
speculation for keeping up prices will always
| fail"
Mr., Gould said he was not familiar with
the method of specializing in corn and wheat,
but thought that there was nothing unfair in
stock speculation. Each transaction repre-
sented a sale and delivery, and the influence
of the transaction did not go beyond the par
ties themselves.
THE RECENT STRIKE OF THE TELEGRAPHERs.
The Western Union Telegraph Company,
he thought paid more attention to its en-
ployes than any other company with which
he was connected. The recent strike, in his