Savannah morning news. [volume] (Savannah) 1868-1887, 1883-09-06

SkepticaI of Postal Telegraphy.
NEW YORK, Sept. 5.--Jay Gould was
the principal witness to-day before the
subcommittee of the Senate Committee
of Education and Labor. There was a
large attendanceOf persons curious to see
and hear him, and his examination Oc-
cupied nearly the whole day, covering a
great variety of topics more or less closely
relating to the labor question.
He was first asked to give the story of
his life and business enterprises, and he
complied by giving an outline of his bus
mess life from boyhood, from his first
start tending cattle on his fathers farm,
through several experiences, as a maker
of sun dlals for farmers, as
surveyor, tanner. rail-
road superintendent, speculator, and
director. His first railroad connection,
he said, was as Superintendent of what is
now part of the Rennselar and Saratoga
Railroad. During the panic of 1850
he bought in a large amount of stock
OF this railroad at low figure and
afterwards sold it at handsome
profit. He next interested himself
IN Cleveland and Pittsburg, which
he afterwards leased to the Pennsylvania
Railroad. He told of his connection with
Union Pacific, which he had taken uD
when it was at the point of being
placed in the hands of a receiver.
He afterwards sold the stock of this
railroad, and it was now i'm the hands
of more than 1000 investors, and
represented the capital of many widows
and orphans. 1t was now higher than
when he sold it. His next venture was
the building up of the Gould Railroad
system in the South and West. beginning
with the purchase of the Missouri and
Pacific. At this time, he SAID he mad
passed the point where money making
was an object, and his idea in carrying
out the system was to see what could be
done. The cOmbinatiVe system now eX-
tends, he said, through Ohio, Illinois, In
diana, Michigan, Missouri, Arkansas.
Texas, Louisiana, Indian Territory and
Mexico, and its construction was COM
pleted last year. 1t embraced
10000 miles of road. When
he took possession of these
lines their earnings aggregated about
$4,000 month. The earnings for the past
month were $5,500,000. He said that he
was now director in the Chicago and
Northwestern, Chicago and Rock Island.
Delaware, Lackawanna and Western,
New York and New England, and several
smaller companies. His telegraph con-
nectiOn, he said, was incidental to his
railroad interests, the two being init
mately related. He had been instrumen-
tai in starting the American Union to
compete with the Western Union, but
finding this impossible had turned his
attention to getting hold of Western
Union. His object in securing con-
troll of Western Union was to
make his friend, Gen. Eckert, business
manager Of the Western Union Com
pany. He said its value was nearly
equal to its capitalization. He thought
that per cent. was fair estimate of the
earning power of the company. The
state of its franchises could not be esti-
mated by any known means. Its contracts
with rallIOad had been made under vary
ing circumstances. Its stock was dis
Of it being held by investors, and he
thought that within two years every share
of this stock now upon the market would
be absorbed. There might be water in
Western Union, but the same could be
said of all kinds of property which had in
creased in value. In reply to the question
of Senator Blair the witness said that it
would be impossible for him to give an
estimate value Of the West
ern Union COmpany's property. He
judged of the value of property by its
earning power.
With respect to the postal telegraph Mr..
Gould said that he thought the institu-
tions of this country were opposed to anv
such thing. Again, the telegraphic bust
ness, more than any other, required to
be managed by experts. Under the gov
ernment system the management would
be subject to chance and the particular
political party IN power. The postal SER
vice would, he thought, be better managed
hV DriVatp pntpPnriGn fhaO nv tho ,roxyor,,
ment. He would not object to the gov
ernment taking hold of the telegraph sys-
TEN of the Western Union If il would
pay for it what it was worth on a fair
appraisal. He did not think that there
could be any lasting competition against
Western Union. its facilities We're so
great. When there were powerful rivals
rates were not reduced, because the COM
petitOr was obliged to charge rates as
high as Western Union In order to live.
The government had right to fix "a limit,
beyond which the profits of the company
could not 60, but it had not the right to
take away private property without just
compensation.
The witness testified at length as to
railroad rates and competition, and eX-
planned railroad pooling arrangements.
He did not believe in government
interference with railroad rates,
as competition would always regulate
them.
He was questioned as to stock specuIa-
tiOn in food products. He said he was not
familiar with speculatiOns in corn and
wheat, but thought that there was
nothing unfair in stock speculation. Such
speculation might for a short time in
crease to a certain extent the price of
food products, but the laws of supply and
demand would always regulate these
things. With regard to the labor problem,
he said that labor and capital, if left to
themselves, would bring about
a satisfactory adjustment of their
dlfhcultles. There was no panacea
for the discomfort of one or the
other. He believed that labor got it's fair
share of the product of labor and
capital, and that the returns for capital
were constantly growing less. The
cause of the present discomfort of the la.
boring classes was that there was a sur.
plus of labor in this country, owing to the !
large immigration and the stoppage of
railroad building. The surplus OF immi- !
grafton was, however, placing itself in
the Northwest on government and rail
road lands. 1t was to the in
get small farmers on these
lands. 1t would be contrary to !
the interest of railways to sell large tracts |
of land to private spectators. He thought |
that the animosities and grievances of |
the laboring classes had been fOstered and /
by the societies to which |
they belonged. The only safeguard for |
society was the education Of the masses.
and any legislation in the interest of labor |
should have this in view. The legitimate
field of trade organizations was. he
thought, confined to benevolent institu- |
tiOns.
In answer to questions presented by
Senator Call, AIR. Gould said thai he did |
not think it just for the government 10 |
attempt to limit in any way n !
mans capacity to acquire wealth, and |
that wealth should certainly not be linn |
tied by the amount to be obtained in farm |
ing. He said, with regard to Western |
Union and its employees, that that COM
pany paid more attention to its employees |
than any other company with which he |
was connected. 1he regent atrikg Wa5, |
in mis- opinion, the result of a feeling OF |
on the part of the poorer
class of employees.
Laying Corner Stone in Dakota.
BISMARCK, ID. r., Sept. 5.-The corner
stone of Dakota's capitol was laid here
today in the presence of the Willard
Northern Pacific excursion party and
large cCncourse Of people. speeches we're