Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1883-10-04

dollars received from IMr. UOQlu, WHOSE
large benetactions to the yellow fever suffer-
ers of Memphis, and to the needy frontier
farmers of Kansas are remembered by read
ers of newspapers. Jay Gould is unques-
tionably great man, one Of the shrewdest
flnanciers of the world. To say that he is
morally inferior to the average man of bus
mess would be to do him great injustice.
During the recent session in New York of
the subcommittee Of the U. S. Senate Com
mittee on Education and Labor, Mr.. Gould
was summoned before that body as a wit
ness. There was a large attendance of per-
sons curious to see and hear him, and his ex-
animation occupied nearly a whole day,
covering variety of topics, more or less
closely relating to the labor question. A
brief synopsis of his testimony will prove in
teresting in this connection. He was first
asked to give sketch of his life and busi-
ness enterprises, and complied, giving an
outline of his business life from boyhood
from his first start, tending cattle on his fa-
theirs farm, through several experiences as
the maker of sun dials for farmers as a sur
veyor, tanner, railroad superintendent, spec
ulator and director.
His first railroad connection, he said, was
as superintendent Of what is now part Of
the Rensselaer, and Saratoga Railroad. Du-
ring the panic of 1859 he bought in a large
amount of the stock of this road at low
figure and afterwards sold it at handsome
profit. He next interested himself in the
Cleveland and Pittsburg, which he after
wards leased to the Pennsylvania Railroad.
He told of his connection with the Union
Pacific, which he had taken up when it was
on the point of being placed in the hands of
a receiver. He afterwards sold the stock OF
this railroad, and it is now in the hands of
1000 investors and represented the capital
of many widows and orphans. 1t was now
higher than when he sold it. His next ven
ture was the building up of the Gould rail-
road sytem in the South and West, begin
ming with the purchase of the Missouri Pa
cific.
At this time he had passed the point
where money making was an object, and
his idea in carrying out the system was to
see what could be done by combination.
The system now extends, he said, through
Ohio, Illinois, Indiana, Michigan, Missouri,
Arkansas, Texas, Louisiana, Indian Terri
tory and Mexico and its construction was
completed last year. 1t embraces 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 S5,50O,OOO. He said he was
-, fho orI Nnrth-
west, Chicago and Rock Island, Delaware,
Lackawana and Western, New York and
New England, and several smaller compa-
nies.
His telegraphic connection, he said, was
incidental to his railroad interests-the two
being intimately related. He had been in
strumental in starting the American Union
to compete with the Western Union, but
finding this impossible, he had turned his
attention to getting hold of the Western
Union. His object in securing control Of
the Western Union was to make his friend,
General Eckert, business manager of the
Western Union Company. He said its val
ue was nearly equal to its capitalization.
He thought seven per cent. was fair esti-
mate of the earning power of the company.
The value of it's franchises could not be eSti-
mated by any known means. Its contracts
with railroads had been made under vary
ing circumstances. Its stock was distribu-
ted all over the country, $50, 100000 of it be-
ing held by investors, and he thought that
within two years every share Of this stock
now on the market would be absorbed.
There might be water in the Western Un-
ion, but the same could be said of all kinds
of property which had increased in value.
In reply to question of Senator Blair,
the witness said it would be impossible for
him to give an approximate estimate of the
value of the Western Unions property. He
Judged of the value of the property by the
earning power.
With regard to postal telegaphy, Mr..
Gould said he thought the institutions of
this country were opposed to any such
thing. Again, the telegraphic business,
more than any other, required to be man.
aged by experts. Under government sys-
tenn the management would be subject to
chance and the particular political party in
power. A postal service would, he thought,
be better managed by a private 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 what it is worth on fair ap-
praisal. He did not think there could be
any lasting competition against the Wes-
tern Union, its facilities were SO great.
When there were powerful rivals the rates
were not reduced, because the competitor
was obliged to charge rates as high as the
Western Union in order to live. The gov
ernment had the right to fix limit beyond
which the profits of the company could not
CO. but it had not the right to take away
private property without just compensation.
The witness testified at length as to rail-
road rates and competition, and explained
the railroad "pooling" arrangement. He
did not believe in government interference
with railroad rates, as competition would
always regulate them.
With regard to the labor problem, he said
that labor and capital, if left to themselves,
would bring about satisfactory adjustment
of their difficulties. There was no panacea
for the discomfort Of one or the other. He
believed labor got its fair share of the pro-
duct of labor and capital, and that the re-
turns for capital were constantly growing
less. The cause of the present discomfort OF
the laboring classes was that there was
surplus of labor in this country, owing to
large immigration and the stoppage of rail-
road building. The surplus immigration
was, however, placing itself in the North
west on government and railroad lands. 1t
was the interest of the railroads to get