The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1883-09-06

represented the growth of the coun-
trys and was pr )greSSing more rap
idly than most people imagine, He
thought Z per cent. was a fail
estimate Of the earning power OF
the Western Union. If the people
thought they were getting too much
they could buys stock of the com
pany. The stock OF all safe paying
enterprises was being distributed all
over the country. This class of in
Yestors held $60,OOO,0O0, of the
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 the investors. He
was glad that this was so, for it in
d1cated a proper condition of affairs.
He did not think there was as much
water in the stock of the Western
Union as in many other companies.
The value OF the Western Union
was very nearly equal to its capitali-
cation. A railroad like the New
York Central probably could not be
duplicated for its present capitaliza-
ton.
ado you think that New York
city cost more than it would sell for
on the market ?"
81 don't think my opinion on
that subject would be very valua-
ble," replied Mr.. Gould, "at any
rate, | don't think 1 would care to
buy New York city, even if I could
get plenty of corner lots"
Mr.. Gould stated that he did not
think it was possible for a company
to get an exclusive privilege; for in
the case of any railroad another
could be constructed alongside, if a
sufficient number Of wise men, or
fools, could re found, who would
put the enterprise through. Even :
tually, 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,
the companies reduced the rates
charged below the limits made by
law.
Mr.. Gould declined to specify the
railroads where the capitalization
was greatly in excess of the cost of
construction and real value. He did
not believe in Government interiors
ence, as the rates would always be
regulated by competition. The
system of pooling had undoubtedly
saved a great many corporations
from being injured seriously. Its
effects were merely to protect the
poads entering into the pool from a
rulnous competition. The pool
could not affect the rates very much
on account Of he various elements
which entered into the system.
There were outlets, by the
way of the Mississippi riY-
or, the canals and the
lake routes and the canal>railroad
routes, for freight, and with these
exceptions the rates could never be
maintained beyond certain point.
He explained, in a general way, the
pool system as it at present existed,
after which the committee took
recess.
At the 2 pm. session Mr.. Gould
continued his testimony.
do you think that the public
good is Influenced by stock specula>
ton in food products ?" asked Sen
ator Blair.
at might to a certain extent in
crease the price for a short period"
replied Mr.. Gould, "but the supply
and demand will always regulate
these things and keep up balance.
If there is a large crop, the price
will be so much below the
average that speculation to keep
up prices will always fail.
Mr.. Gould said he was not familiar
with the method of speculation in
corn and wheat, but thought that
there was nothing unfair in stock
speculation. Each transaction reps
resented sale and delivery, and
the influence Of the transaction did
not go beyond the parties them
selves. The Western Union COM
pany, he thought, paid more atten-
ton to its employees than any other
company with which he was con-
nected. The recent strike, in his
opinion, was the result of a feeling
of dissatisfaction On the part
of the poorer classes of en-
ployees. The better class of
workmen, as general rule, did not
care so much how many hours they
worked; they were continually
seeking higher positions in the
ranks. It was facC that the West
ern Union paid its employees better
wages than any other company.
Labor and capital, if left to them-
selves, would bring about salts
factory adjustment.
"Do you think that labor gets its
fair share of wealth, which is the
producer of all capital?" asked Sen
ator Blair.
"I do" replied Mr.. Gould. "The
returns of capital in this country
are constantly growing less; the
profit represents the returns of capt.
tai, with the exception of what goes
to pay for the material"