Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1883-09-06
rae LABOR cOMMIrTEE.
Jav Gould Gives Q Sketch Of His Life
and Work.
New YORK, Sept. 8.

took possession was about $4,000 month
The earnings for the past month were
So. 500. 900. Gould stated that he was a
director in the Chicago and Northwestern
Chicago and Rock Island Delaware, Lacka-
wanna and Western New York and New Eng
land. and several other lines, Incidental to
his railroad interests he had become largely
interested in the telegraph business. He was
in at the starting of the American Union,
but finding it impossible to compete with the
Western Union on account of the latter con-
nections. and turned his attention to getting
control of the Western Union. Finding it
paving investment he had been constantly in
creasing his interest. His object in getting
control of the Western Union was to make
his friend Gen. Eckert manager. The rail-
roads which are now acquired by the Western
Union are invaluable and it is impossible to
estimate their value. He thought the insti-
tutions of the country were opposed to any
such thing as postal telegraph. The tele-
graph bushes, more than any other. required
to be managed by experts. The business
under the government system would make
the management of these great interests sub
ject to chance, and the particular political
party in power. Gould thought that the mail
service would be better accommodated by pri-
vate enterprise.
getting hold of the telegraph system of the
Western Union If it would pay for it what it
was worth on fair appraisal, but in his Opin-
ion it would not be a success. Uniform
tariffs could be obtained under private enter
prise as well as under a government super
vision. There could be no lasting competi-
ton against the Western Union on account
of its great facilities. When there were
powerful rivals rates were not reduced be-
cause the competition was Obliged to charge
rates as high as the Western Union in order
to live. This had been his experience.
The value of the stock, in corporation de-
ponds 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. He thought the
government had a right to fix the limit be-
yOnd which the profits of the company
could not go, so long as the rates were not
unreasonable, but it had not right under re-
publican institution to take away private
property from its citizens without just COM
pensation.
Senator Blair inquired whether he could
give an approximate estimate of the value of
Western Union Company.
Mr.. Gould replied that this would be i'm
possible as he was not in such a position to
give such an estimate He thought I per
cent was a fair estimate of the earnings of
the company. He did not think there was so
much water in the stock of the Western I'm
ion as in that of many other companies
The value of the Western Union was very
nearly equal to is capitalization. railroad
like the N. Y, Central probably could not be
duplicated for its present capital.
Blair.-Don't you think New York City
cost more than it would sell for?
don't think NV OpiniOn IN that cuhi ant
would be very valuable" replied Mr.. Gould,
"At any rate | do not think should care to
buy New York if could get plenty of corner
lots"
Gould stated he did not think it was posi-
BILE for the company to get an exclusive priv
ilege. for in the case of a railroad another
could be constructed along side if sufficient
number of wise men or fools could be found
who would put their money into the enter
prise. Eventually, however. stronger roads
would Away swallow W the weaker. In all
the lines controlled by hi in the west the
rates for fares and freights were regulated
by the State statutes. In many cases, how
ever, competition reduced the rates below
the limit fixed by law.
Gould declined to specify railroads whose
| capitalization was greatly in excess of the
cost OF construction, or real value. He did
no believe in government interference, as the
rates would always be regulated by COMPETE
ton. The system of pooling had undoubted-
ly saved a great many corporations from be-
ing injured seriously. Its effect was merely to
protect the roads entering into the pool from
ruinous competition. pool could not affect
the rates very materially on account of the
various elements which extend into the sys-
tenn. There were outlets by the way of the
Mississippi river, canals and the Canada
routes for freight and with these in existence
| rates could not be maintained beyond a certain
point. He explained in general way the
| pool system as it existed at the present time.
do you think the price of food is in
| f1uenced by stock speculation or speculation
| in food productsf" inquired Senator Blair.
at might to a certain extent increase the
| price for a short period replied Gould,
| ''but the supply and demand will always
regulate those things and keep up the bal
ance. If there is a large crop the price will
be so much below the average that specula-
ton to keep the prices will ALWAYS fail.
| Gould said he was not familiar with the
method of speculation in corn and wheat, but
thought there was nothing unfair in stock
| speculation. Each transaction represented a
sale and delivery and the influence of the
| transaction did not go beyond the parties
themselves. The Western L MON, he thought
paid more attention to its employees than any
other company with which he was connected.
The recent strike, in his opinion, was the
result of a feeling of dissatisfaction on the
part of the poorer class of employees. The
better class of workmen did not care how
many hours they worked as they were con-
| tinually hopeing for higher positions in rank.
Ii was tact that the Western Union paid its
| employees better wages than any other com
pany. LABOR and capital if left to themselves
would bring about satisfactory adjustment.
There was always more or less dissatisfaction
| and there was no penacea that would remove
| these feelings of discomfort.
| ''Do you think that labor gets its fair
share of wealth which is the product Of labor
| and capital?" asked Senator Blair
| Il do, replied Gould, Returns for CAPT
| tai are in this country continually growing
less. Profits represent the returns of capt.
| tai and all the rest with the exception of what
| goes to pay for raw material, and is devoted
! to labor
What do you think is the explanation of
| the recent discomfort" asked Blair.
I'm my opinion there is surplus of labor
| IN this country. There has been large i'm
| migration. and recently railroad building has
been stopped and the market is oyer-crowded
with laborers. In time these things will adj
just themselves. This surplus of labor is
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