The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1883-09-13
Mr.. Jay Gould's Life.

Education and Labor to-day. On being
sworn, Senator Blair requested him to give
a history of his early life and first business
adventures, and then go on and give the
story of his progress to his present con-
dtion. Mr.. Gould seemed to be somewhat
staggered at the request. but turning with
a smile toward the reporters, he began in
4 low voice: II was born,n he said, sat
Roxhruy, in Delaware county, i'll this state,
on May 9th, 1886. Myparents had small
farm and kept twenty COWS, which I as
sisted in tending. | attended school about
fifteen miles distant, and when / was about
fourteen years old obtained situation in
q store in a neighboring village. | was
much interested in mathematics, and used
to get up mt three O'Clock in the morning
and study to six, when the store was
opened. | remained in the state for two
years, when | made the acquaintance Nof a
surveyor who was making a survey of
/ Ulster county. He took me into his SER
ssie 1T IA salaryof sss2aa month. fearfed
that my employers credit was not very
good, and / was to obtain no money for
/ my work until the map was completed, so
that [ made slln-dials for the farmers at
81 apiece, to pay my running expenses. l
made surveys afterwards of Delaware and
Albany counties, and made in these con-
tracts about $4,000. l then went into the
| tannery business with Mr.. Pratt, of
Prattsville, and finally entered into part
nership with Charles M. Leupp, who COM
which l had any connection was what is
now portion of the Rensselaer, and Sar-
| atoga, of which [ was superintendent.
During the panic of $50 the stock went
down very low, and was able to buy in a
large amount Of the stock, which after
wards rose in value and madea handsome
profit" The next road in which Mr..
Gould said he interested himself was the
Cleveland and Pittsburg, which he after
wards leased to the Pennsylvania road.
Mr. Gould then rehearsed the STORY Of his
connection with the Union Pacific road.
AS he had interested himself in it, and the
stock was falling, he made up his mind to
carry it through at any cost. 1t was on
epont of being placed in the hands of a
receiver. Afterwards, when the road be-
came a paying one and dividends were de-
clared regularly, there was a great cry
from the public that it was Jay Gould's
road, as if this was a dangerous thing. He
said, however, that he was then engaged in
,o1I. l.,
the hands Of more than seven thousand in
vestors, representing the earnings of many
widows and orphans. This ended his con-
nection with the Union Pacific, and the
stock was now higher than when he sold
it. The next venture was the building up
of the Gould railroad system in the South
and West. 1t began with the purchase of
the Missouri and Pacific from Commodore
Garrison. Other roads were purchased and
connections were made to different points.
Mr.. Gould said that he had at this time
passed the point where money making was
an object, and his only idea was in carrying
out the system merely to see what could
be done by combination. The earnings of
the lines when he took possession of them
was about $40, 900 a month. The earnings
for the past month were S., 100000. Incl
dental to his railroad interests he had be-
come largely interested i'll the telephone
business. This was on account of the in
innate connection between the two indus
tries. He was instrumental in starting
the American Union to make it a cOm-
peting line with the Western Union. He
found that it would be impossible to ac-
compliSh this on account of the extent of
the latters connections. He 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 constantly increasing his in
terest. His object in securing the control
of the Western Union was to make his
friend, General Eckert, the manager, as he
had great confidence in his business abil-
ity''
"Cah you give us your opinion as to the
practicability of a government postal tele
graph, which would take the place of the
present system, Mr.. Gould ?" inquired
Senator Blair
II thing the institutions of this coun-
try are opposed to any such thing as that, !"
replied MI. Gould. photographic bust
ness, more than any other, requires to be
managed by experts, and the dividends of
the Western Union are obtained because
it does the business well. Under gov
eminent system the whole management of
these great interests would be subject to
chance, and the particular political party
then in power"
MI. Gould also thought that the mail SER
vice would be better accomplished by pri-
waite enterprise than by the government
He thought the government had a right to
fix limit beyond which the profits of the
company could not go, so long as the rates
were not unreasonable, but it had not the
right under republican institutions to take
without just compensation.
Senator Blair inquired whether he could
give an approximate estimate of the value
OF the Western Union Company.
Mr.. Gould replied that this would be inn
possible, as he was not in a position to give
such an estimate. The value of franchises
possessed by the company at present could
not be estimated by any known means. He
thought per cent. was a fair estimate of
the earning power of the Western Union.
He did not think there was much water in
the stock of the Western Union as in that
OF many other companies. Mr.. Gould de-
clined to specify the railroads whose capt.
talization was greatly in excess of the cost
OF construction or real value. He did not
believe in government interference, as the
rates would almost always be regulated by
competition. He explained in a general
way the pool system as it at present exists.
When the afternoon session began, Mr..
Gould continued his testimony.
s'Do you think that the price of food is
influenced by stock speculation or specula.
ton i'll food products ?" inquired Senator
Blair.
ut might to a certain extent increase
the price for a short period,'' said MI.
Gould, ''but the supply and demand will
| ALWAYS reoT1ate those thinOc and knan I'M a