The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-12-28
Scott Wike ON Jay Gould's Wealth.

An unknown friend. whom We suppose to
be the Hon. SCOTT WIKE Of Illinois. has
favored us with q revised and corrected
copy OF the great speech delivered by Mr..
WIKE In the House Of Representatives in
1891. on the danger OF the accumulation Of
colossal fortunes. and the necessity Of an
income tax to prevent the ultimate monop-
oily OF the nations wealth by compare
lively few individuals.
We infer that Mr.. WIKE desires US to OK
anime his theories Of the philosophy OF tax
alton. We prefer to examine him in the
rudiments Of arithmetic.
When Mr.. WIKE discusses the subject OF
the great American fortunes. his authorities
for statements OF fact are Mr.. THOMAS G.
SHEARMAN OF Brooklyn. from the Wikisn
point Of view one OF the foremost econo-
mists Of this country" and the Ne,o York
World. n source Of information regarded by
Mr.. WTKE as entitled to implicit conf
dence."
This great speech on tho Coming Bill
lionaire was delivered some time before
Mr. JAY GouLDs death. Mr.. GoULDs for
tune was adopted by Mr.. WIKE as the typl-
cal illustration. and Mr.. GOuLD's first mil
lion as the working unit Of plutocracy. The
calculations were based on the supposition
that GoTLD's possessions amounted to
S20O. OOO, 900; figures which. as MIR. WIKE in
timated. might fall short OF the actual fact
by ut least $50.000,000. Starting with the
assumption that JAY GoULD's wealth
amounted to $500. OOO. 600. our wildcat arIth-
mctlcian proceeds:
at is estimated that person now worth 5000 900.
Hfn-
crrsses ut tho rate Of per cent compound interest,"
which IL easily may. and that on this hypothesis In
sixty years there will DO as many bonairss ~ there
were millionaires twenty-five years ago.
1.-THE accumulatons OF monares however. are not
made by interest. simple or compound. Twenty.four
or twenty 1--WE years ago Mr. GOULD supposed to have
first become millionaire. The million that made him
such at that time has In tho succeeding twenty-five
years increased to 5000 oOo-that would Of the
rate OF 10000 per cent.
"If he had started twenty-five years ago with his
present fortune and each million had increased at
the same rate tho original million did, hs would now BE-
worth $40 600 900 OO0 about tvo-thirds of the en-
tire wealth of the country.
IF every million of that 5000 900 900 incrsasss in
the proportion In the future that the nrst million
has increased to this date then OF course twenty
ve years from now the amount OF that fortune would
be 100000 OOO. OOo."
We desire to call the attention OF Mr..
SCOTT WIKEs constituents In Illinois. and
his disciples in speculative mathematics
everywhere, to the utter inadequacy OF his
arithmetical methods. and, consequently,
the meagre and commonplace character Of
the conclusions he reaches.
BY taking as bis starting point the COM
paratively recon- date at which Mr.. JAY
GOULD had completed the acquisition OF his
first or original million, and assuming that
only at that time did his genius for accu-
mutation begin to menace society. Mr..
SCOTT WIKE wcakens his own case most
foollshly. and deprives his results of an i'm
pressiveness fit to startlc the country and
the world. The selection of the million point
Is entirely arbitrary and unphilosophi-
cal. 1t Is unworthy OF WIKE. The same