The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1883-09-06
Jay GOULD SPEAKS.
ms BUSINESS LIFE FROM BoYHoop.
The Caule-Tcpder. Maker CT sun-D3als,
surveyor. Tanner. Railroad superiniens.
eut. S,eeulater. and Director.



rnjtfee on Education and Labor. There
was a large attendance Of persons curious
, 10 see and hear him. and his examination
occupied nearly the whole day, covering
) a great variety OF topics more or less close
~ related 10 the labor question. He was
first asked 10 give sketch OF his life and
business enterprises, and complied, giving
an outline Of his business life from boy
hood-irom his first start tending cattle on
his fathers farm. through several expert
ences as a maker Of sIIn-dials for farmers,
as surveyor, tanner, railroad superintend-
ent, Spectator, and director.
HIS FIRST RAILROAD CONNECTION,
be said, was As superintendent Of what is
now part OF the Rensselaer, and Saratoga
railroad. During the panic OF 1883 he
bought in q large amount 81 the stock
OF thi, railroad at a low figure and
afterwards sold At a handsome profit. He
4 next interested himself in tae Cleveland
and Pittsburc. which he afterwards leased
10 the PENNSYLVANIA railroad. He told Of
bis connection with the Union-Pacifc.
which be had taken up when it was on TIE
point Of being placed in the hands oi 4 re-
ceiver. He afterwards sold the stock Of
this road. and il was low In The hands OF
more than 1900 investors. and repre- sepied
fhe capital % many widows aud orphans.
II was now higher than when he sold H.
His next venture was the building up %
the Gould railroad system in the South and
West. beginning with The purchase Of The
Missouri-p Pacific. Al this time, be said, b.
had
PASSED TIE POINT WHERE NONEI-MAklNG
WAS An OBJECT,
-. -, IN y-.-s,,r, 1.-rf fa ..sfafa .x-aS
10 see what could he done by The combina-
ton system. now extended. be said. through
Ohio, Illinois, Indiana, Michigan. Mis-
souri,. Arkansas. Texas. Louisiana, Indian
! Territory. and Mexico. and its construc-
ton was completed last year. Il embraced
10000 miles Of road. When he took pos
session Of these lines their earnings aggre-
gated about $4,000 month. The earn
ings for the past month were $500, 0G0.
He said he was now director in the Chicago
and Northwest. Chicago and Rock Island.
Delaware. Lackawanna and Western, New
York and New England, and several smaller
companies.
His telegraph connection. be said. was
incidental 10 his railroad interests, the two
being intimately related. He had been in
sfrumenial in starting the American Union
10 compete with the Western Union. but
finding this impossible had turned his at
tention 10 getting hold Of the Western
Union.
HIS OBJECT N SECURING CONTROL OF TIE
WESTERN UNION
was to make his friend General Eckert bu-
sipess manager Of the Western Union Com
panY. lie said it, value was nearly equal
10 lis capitalization. He thought per
cent. was a fair estimate Of the earning
power Of the company. The value Of IL
franchises. could not be estimated by any
known means. Contracts with railroads had
been made under varying circumstances.
L. stock was distributed al over the c0un-
try. $50. O0O. 600 Of II being held by invest
or: and he thought that within two years
every share % this stock DOW upon the
market would he absorbed. There might
he water in the Western Union, but the
same could be said Of al kinds Of property
which had increased In value.
In reply 10 a question Of Senator Blair.
witness said II would be impossible for him
n give an approximate estimate OF the
value OF Western Union Company's pro-
peltv. He judged the value Of the pro-
perry 10y its earning power.
HIS OPINION OF TIE TELEGRAPH.
With respect TO the postal telegraph, Mr..
Gould said he thought the institutions OF
tbis country were opposed to any such
Thing. Again. the telegraphic business.
more than any other, required to be maD-
aged bv experts. Under the Government
system the management would be subject
II chance and the particular political party
in mower. The postal service would, be
thought. he better managed 10y private en-
II. prise than 10y the Government. lie
would not object 10 the Government taking
hold of the telegraph system Of the Western
Union If Il would pay for il what II was
worth on a fair appraisal. lie did not
think there could be any lasting eompetl-
ton against the Western Union, il iaclh-
ties were 80 great. When there were pow
erlul rivals the rates were not reduced, De-
c9use the competitor was obliged 70 charge
rates as high a. the Western Union IN
order 70 live. The Government had right
70 fix limit beyond which the profits OF
the company could not 20, but II had not
I The right TO take away private propelty
! without just compensation.
RAILROAD RATES AND FOOD PRODUCTS
Witness testified Fl length n TO railroad
rates and competition, and explained me
railroad pooling Arrangement. lie dld
not believe in Government interference
with railrosd rates, as competition would
ALWAYS regulate them. He was questioned
I az TO stock speculations in food produces
I He said he was not familiar with specula-
tions in corn and wheat. but thought there
was nothing unfair in stock speculation
Such speculation might for a short time In
crease 10 certain extent the price OF 1000
nroduct. but the laws OF supply and de-
mand would always regulate these things.
With regard to
= TIE LABOR PROBLEM.
he said that labor and capital If left 10
: themselves would bring about satisfactory
r adjustment OF their difficulties. There
I. was no panacea for the discomfort OF one
or the other. He believed labor got lis fail
share Of the product Of labor and capital
and that the returns for capital were con-
= stantly growing less.
> The cause Of the present discomfort Of
! the laborinC classes was that there was ;
j. surnlus OF labor in this country. owing Il
;, the large immigration and the stoppage O
=. rsilroad-build:ng. The surplus OF iInml
grafton was. however. placing itself in th'
q Northwest on Government and railroad
= Lands. II was 10 the interest OF the rail
lie roads 10 get small farmers on these lands
al II would be contrary TO the interests o
N railroads TO sell large tracts OF land 10 pr
a yafe Spectators. lie thought the animosi
- Ties and grievances OF the laboring classe
u had been ios,ered and exaggerated by III
y societles TO which they belonged.
THE ONLY SAFEGUARD FoR SOCIETY
. was the education OF the masses, and an
J. legislation in the interest OF labor shoul
Dc have this in view. The legitimate field G
I'D trade organizations was, he thought, con
Id fined 10 benevolent institutions.
- =. or-,ver Ia questions Presented b