The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1883-09-07
GOULD ON THE STAND.
NARRATlNc HIS PAST SUCCESSES
The..waH Street Magnate's Investigation.
Into the Merits of Combinatfon-The
Institutions of the Country OPP
posed to Government Teleg-
raphy.
A MuLIoNATRE's VIEWS.

90 * NUN 1Sidllu; Tue DttdWdIt, Ldckd-
wanna & Western, the New York & New
England, and several other smaller lines.
Incidental to his railroad interests, he had
become largely interested in the telegraph
business. This was on account of the init
mate connection between the two industries
He was instrumental in starting the Ameri-
can Union line to make competing line
with the Western Union. He found that it
would be impossible to accomplish this on
account of the extent of the latter's connee-
tons. He then turned his attention to get
ting control of the Western Union by buy
ing the stock when it was low. Finding it
was paying investment, he had been con
stahtly increasing his interest. His object
in securing control of the Western Union
was to make his friend, General Eckert,
the manager, as he had great confidence in
his business ability. The railroad faeili-
ties which were now acquired by the West
ern Union are invaluable, and it is impossi-
bic to estimate their value.
Can you give us your opinion as to the
practieability of good postal telegraph
which would take the place OF the present
system?''
Mr. Could think the institutions of
this country are opposed to any such thing
as that. Telegraph business, morethan any
other, requires to be managed by experts,
and the dividends of the Western Union are
obtained because ii does the business well
Under a Government system, the whole
management of these great interests would
be subject to change, and would be con
tTolled by the particular political party then
in power. Mr.. Gould also thought that the
mail service would be better accomplished
by private enterprise than by the Govern
ment. lie would not object to
the Government taking hold of the tel
egraph system of the Western Union, if it
would pay for il what it was worth Oh a
fair apprasement, but, in his opinion, it
would not be success, Uniform tariffs
could be secured under private enterprise
as well as under Government supervision,
and the Western Unions policy tended to
accomplish this. In New York State there
is a uniform system of rates. There could
be no lasting competition against the West
ern Union, on account of its great facilities.
When there were powerful rivals, the rates
were not reduced because the competitor
was Obliged to charge the same rates as
the Western Union in order to live. Mr..
Gould said this had been his experience,
and if any one thought he could do better
than himself he was certainly at liberty to
try The value of the stock in corpora
ton depended upon its earning power.
There might be water in the Western
UniOn but the same could be said of all
kinds of property which had increased in
value. He thought the Government had
right 10 fix a 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, 10
take away private property from its citizens
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
impossible, as he was not in a position to
give such an estimate. He did not think
there was as much water in the stock of the
Western Union as in many other compa-
MES. The value of the Western Union was
very nearly equal to its capitalization. A
railroad like the New York Central prob
ably could not be duplicated for its present
capitalization.
Don't you think that New York City
cost more than it would sell for?n asked
Senator Blair.
Il don't think my opinion on that subject
would be very valuable, =" replied Mr. Gould.
cat any rate, do not think l should care
to buy New York, even if could get plenty
of corner lots"
Mr. Gould stated that he did not think il
was possible for a company TO get an eX-
elusive privilege, for, in the case of any rail-
h., 4 nlo
side, if 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 ali the lines
controlled by him in the West, the rates for
fares and freights were regulated by State
statutes. In many cases, however, compe-
titiOn reduced the rates charged below the
limits fixed by law. Mr.. Gould declined to
specify railroads whose capitalization was
greatly in excess OF the cost of construction,
or real value. He did not believe in Gov
eminent interference, as the rates would al
| most always be regulated by competition.
He explained in a general way the pool sys-
TEN as it at present existed. after which the
committee took a recess until two O'Clock.
When the afternoon session began Mr..
| Gould continued his testimony.
DO you think that the price of food is
| Influenced by stock speculation OF specu-
| latiOn in food products?' asked Senator
| Blair
sit might to a certain extent increase the
! price for short period replied Mr. Gould
'but the supply and demand will always
regulate these things and keepup balance.
If there is a large crop, the price will be sc
much below the average that speculation to
keep up prices will always fail,
| Mr. Gould said he was not familiar witt
| the method of speculation in corn and
| wheat, but thought that there was nothing
unfair in stock speculation Each transac
ton represented a sale and delivery, and the
influence Of the transaction did not go be-
yOnd the parties themselves. The Western
Union Company, he thought, paid more at
tention to its employees than any other com
pany with which he was connected. The
| recent strike, in his opinion, was the result
OF feeling OF dissatisfaction on the par
OF the poorer class of employees. The
better class of worl1men, as a general rule
did not care so much how many hours they
worked, as they were continually hoping
for higher positions in the ranks. 1t was {
fact that the Western Union paid its EN-
plOyes better wages than any other com
pany. Labor and capital, if left to them
selves, would bring about satisfactory adj
justment There was always more Oh les
dissatisfaction, and there was no panaceS
that would remove these feelings of discon
tent.
''Do you think that labor gets its fair shari
OF the wealth which is the product of iabo
and eaptal?'i asked Senator Blair
4 Il do replied Mr.. Gould. "The re
turns for capital in this country are continu
ally growing less. Profits represent the re
turns of capital, and all the rest, with the
exception of what goes to pay for tine raw
4 materials, is devoted to labor. !"
'tNhat do you think is the explanation 0
the present discontent?"
''In my opinion there is surplus of labO
in this country. There has been a larg
immigration, and recently railroad buildin
has been stopped, and the market has bee
oyercrowded with laborers In time thes
things will adjust themselves. This SUI
plus of labor is placing itself in the We'
and Northwest. Immigrants are rapidly o.
cupying the Government and railroad land
in the West"