The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1883-09-13
JAY GOULD.
The Great Mouopolist,s History.

NEW L ORhs september 0.7S6QaIOrS
Blair and Call waited patiently for
Jay Gould to appear before them this
morning, to testify as 10 the relation
of capital and labor. A large audience
was in attendance. As Gould delayed
his appearance the committee heard
the statement of George w. Weston,
lawyer, Of this city, who appeared
in opposition to Henry George and
Moody. Just as witness was begin
ming his testimony Gould entered.
Weston merely said the tendency to
monOpoliZe land was not so bad now
as it was 100 years ago in this country.
Gould then took the stand and, on be-
ing sworn; Senator Blair requested
him to give history of his early life
and first business adventures, and
then go on and give the story of his
progress to his present condition.
Gould seemed somewhat staggered,
but turning with a smile toward the
reporters table; began in a low voice:
Il was born at Roxhury, Delaware,
county, this state May 81, 1886; my
parents had small farm and kept
twenty cows, which assisted in tend
ing. attended school about fifteen
miles distant, when 1 was about six
teen years old. obtained situation
in a store in the neighboring village.
was much interested In mathematics
and use to- get UP at 3 o'clock in the
morning to study till 6, when the store
was opened. remained in the store
for two years; when 1 made the ac-
quaintance of surveyor, who was
making a survey of Munster county
He took me into his service at a salary
Of $40 per month. l learned that my
employers credit was not very good
and that | was not to obtain money
for my work until the map was COM
pleted; SO [ made sun dialS for farmers
at a dollar a piece; to pay my running
expenses. made a sttfvey afterwards
of Delaware and albany counties,
and made in these contracts about
$500. l then went into the tannery
business with a Mr.. Pratt, and
finally entered into a partnership
with Chas: NJ. Leupp. who committed
suicide. The first railroad with which
L had any connection was what is now
a portion of the Rensselaer, and Sarato-
ga; of which | was superintendent.
During the panic Of SO stock went
down very low and I was able to buy
a large amount, which afterWard rose
in value and 1 made handsome pro-
fit. The next road in which he inter-
ested himself was the Cleveland and
Pittsburg, which he afterward leased
to the Pennsylvania road. Gould re-
hearsed his connection with the Union
Pacific. He had interested himself III
it when stock was falling. He made
up his mind to carry it through at any
cost. 1t was on the point of being
placed in the hands of receiver. At
forwards, when the road became a
paying one; and dividends were de-
clared regularly; there was Quite
cry from the public that It was
a dangerous thing to be said.
selling out his stock, which was soon
ors. representing the earnings of
many widows and orphans. This
ended his connection with the Union
Pacific stock, which is now higher
than when he sold it. The next venz
ture was the building UP of Gouh's
railroad system in the South and
West. 1t began with the purchase of
the Missouri Pacific from Commodore
Garrison. Other roads were purchased
and connections made to different
points. Gould said he had at this
time passed the point when money
making was an object. ana his only
idea in >.trrying out the system was to
me-utf zee what could be done by
la..hir ion. The lines controlled by
him n8v spread through Ohio, Indi-
2lE, l.i.:higan, Missouri, Arkansas,
Indian Territory, Texas, Louisiana
ana alasico. There are central con-
uggt'ga< at Cincinnati, st. Louis,
Chicago and New Orleans. All the
construction of this system was COM
pleted last year, and represented about
700 miles of road. The earnings of
the lines when he purchased them were
about 100000 per month. The earn
ings for the past month were
So, 100000. In building up this system
the Northwest has been opened up,
and the country thrown open to civil
ization. Mr.. Gould stated that he
was a director in the Chicago and
Northwestern, Chicago and Rock
Island, Delaware and Lackawanna,
Western New Y ork and New England,
and several other smaller lines. In
cidental to his railroad interest, he
had become largely interested in the
telegraph business. This was on ac-
count of the intimate connection be-
tween the industries. He was instru-
mental in starting the American
Union to make it competing line
with the Western Union. He found
that it would be impossible to accom-
plish this owing to the extent of the
Iatter's connections. lie then turned
his attention to getting control of
the Western Union by buying
stock when it was low. Finding
it a paying investment, he had been
contantly increasing his interest. His
object in securing control of the Wes-
tern Union was to make his friend,
Gen. Eckert, manager, as he had
great confidence in his business abili-
ty. The railroad facilities acquired
by the Western Union are invaluable,
and it is impossible to estimate their
value.
Question-Can you give us your
opinion as to the practicability of a
government postal telegraph which
would take the place Of the present
SYSTEM
L think the institutions of this
country are opposed to any such
thing as that. replied Mr.. Gould. Tele-
graphic business, more than any
other, requires to be managed by ex-
perts, and the dividends Of the Yves
tern Union are obtained because it
does this business we'll Under the
government system the whole man
agement of these great interests wonld
be subject to change, and particular
ly the political party then
in power. Mr.. Gould also
thought that the mail service would
be better accomplished by private en-
terprise than by the government. He
wouldn't object to the government
taking hold of the telegraph system of
the Western Union if they would pay
for it what it was worth on fair
appraisement, but in his own opinion
it wouldn't be success. A uniform
tariff could be secured under private
enterprise as well as government SUI
pervision.. The Western Union policy
intended 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 facili-
ties. When there were powerful RI
walls rates were not reduced, because
the competition was obliged to charge
rates as high as the Western Union in
order to live. This had been his eX-
perience, and if any one thought they
could do better than himself he was
certainly at liberty to try. The
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