National Republican., 1883-09-06


stitutions to take away private property from
its citizens without Just compensation.
Senator Blair inquired whether he could
give an approximate estimate OF the value oil
the Western Union company.
Mr.. Gould replied that this would be i'm
possible, us lie was not in position to give
such an estimate. lie did not trouble himself
with details, but judged of the value of prop
erty on a broader basis, that being its earning
power.
The value Of franchises possessed by the
company at present could not DO estimated by
any known means. Contracts with railways
had been made under varying circumstances.
Tho growth of the telegraph system repre-
scented 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 get
ting too much, thoy could buy the stock.
Stock of all safe paying enterprises was being
distributed all over the country. This class
of investors held about $60000,000 Of
tho Western Union 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 con-
dition of affairs. lie did not think there was
as much water in the stock of the Western
Union as that of many other companies. Tho
value of the Western Union was very nearly
equal to its capitalization. A railway like
the New York Central probably could not
be duplicated for its present capitalization.
"Don't you think that New York city cost
more than IL would sell for 7" asked Senator
Blair
II don't think my opinion, on that subject
would bo very valuable" replied Mr. Gould.
"At any rate ] do not think / should care to
buy New York if could get plenty of corner
lots" Mr.. Gould stated that he did not think
il was possible for company to get an OK
elusive privilege, for, in the case of any rail-
way another could be constructed alongside
il 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, competition reduced the rates
charged below the limits fixed by law.
Mr.. Gould declined to specify the railroads
whose capitalization was greatly in excess o
the cost of construction or real value. He
did not believe in government interference
as the rates would almost always be regulated
by competition. The system of pooling had
undoubtedly saved q great many corporations
from being injured seriously. Its effect wa
merely to protect the roads entering into thu
pool from ruinous competition. A pool coult
not affect rates very materially, on account o
various elements which entered into the sys
TEN. There were outlets by way Of the Mis-
osissippi river. The canals and the lake route
and Canada railroad routes for freight, anC
with these in existence rates could never b
maintained beyond certain point.
He explained, in a general way, the poo
system as it at present existed, after whicl
the commission took recess until 2 o'clock.
When the afternoon session began, MI
Geuld continued his testimony. "Do yo
think that the price of food is influenced b.
stock speculation or speculation in food pro
ducts 2" inquired Senator Blair.
at might, to certain extent, increase th
price of food for a short period" replied Nj
Gould; "but the supply and demand will
always regulate these things and keep up
balance. If there is a large crop, the pric
will be so much below the average that specp
lation to keep up prices will always fail.
Mr.. Gould saidshe was not familiar with tn
methods of speculation in corn and whea
but that there was nothing unfair in stool
speculation. Each transaction represented
sale and delivery and the influence of tn
transaction did not go beyond the partie
themselves The Western Union company
he thought paid moro attention to its EN-
ployesthan any other company with whic
he was connected The recent strike, in b
opinion, was the result of feeling of dissa
is!action on the part of the poorer classes
employees. The better classes of workmen
general rule did not care so much how man
hours they worked, as they were continual
hoping for higher position In the ranks.
was fact that the Western Union paid il
employees better wages than any other con
pany. Labor and capital If left to themselvt
would bring about o satisfactory adjustment
There was always more or less dissatisfaction
and there was no panacea that would remov
these feelings of discomfort.
"Do you think that labor gets its fa
share Of the wealth which is the product {
labor and capital 2" asked Senator Blair.
do - ranlin1 Mr. (.nul1 '0Thn
for capital in this country are continual
growing less. Profits represent the return
capital, and all the rest. with the exception
what goes to pay for raw materials, is d,
voted to labor"
what do you think Is the eXp PLANTATION
the present discontent?"
''In my opinion there is a surplus of labt
in this country. There has been large in
migration, and recently railway building hi
been stopped and the market has been owe
crowded with laborers. In time these thinl
will adjust themselves. This surplus of lab
is placing itself in the west and northwes
Immigrants are rapidly occupying the go'
ernment and railway lands in the west.
Mr.. Gould at this point stated that he d
not believe in the system of giving Ian
grants to railways, and the government hG
wisely reserved every alternate section. TT
government lands were being occupied fir
because they could be obtained cheaper.
was for the interest of the railways to G
small farmers to these lands, and this was
ing rapidly DONE lie did not know Of ~
land being sold by railways in large tracts
private spectators. 1t would be contrary
their interests to do this. 1t was not done
any Of the roads controlled by him.
Gould thought that every man who was sob
and industrious would succeed The majori
ofthe employees regarded their employers wi
friendly feelings, and any animosties n
grievances thar might exist had been eXG
gorated by the societies to which many of t
laboring classes belong.
On the question of legislation, Mr.. Gou
declared that the only safeguard to soce
was the education of the mas ,es Anythi
would bo good which would tend to O iuci
and elevate their moral conditions He
not know whether trades unions and lul
organizations were benefit or not. ri
had u legitimate field when they We're CO
fined to mere benevolent institutions
when they rose beyond this they were lost
great sea which thoy cannot control.
Dor, as everything else, WAS governed by
law Of supply and demand.
At this point, Senator Blair said that
had finished his examination, and Sena
Call asked leave TO put before the witnes
few questions which had been submitted
some gentlemen in regard to the amassinl
wealth by the exercise Of corporate franchi
--Mr. Gould, in answer TO these, stated I
he did not believe that there was any 81