“That’s part of my trade,” said Galt. “Every farmer is a gambler. He gambles in weather, worms, bugs, acts of Congress and the price of his produce.”
“You gamble in securities, Mr. Galt?”
“Yes.”
“In the securities of the railroad properties you control?”
“Heavily,” said Galt.
“If, for example, you are going to increase the dividend on Great Midwestern stock you first go into the market and buy it for a rise,—buy it before either the public or the other stockholders know that you are going to increase the dividend?”
“That’s the case,” said Galt.
“As a matter of fact, you did some time ago increase the dividend on Great Midwestern from four to eight per cent., and the stock had a big rise for that reason. Tell this Committee, please, when and how and at what prices you bought the stock in anticipation of that event?”
“In anticipation of that eight per cent. dividend,” said Galt reminiscently, “I began to buy Great Midwestern stock ... let me see ... nine years ago at ten dollars a share. It went down, and I bought it at five dollars a share, at two dollars, at a dollar-and-a-half. The road went into the hands of a receiver, and I stuck to it. I bought it all the way up again, at fifteen dollars a share, at fifty dollars, at a hundred-and-fifty, and I’m buying still.”
Goldfuss was bored. He seemed to be saying to the audience: “Well, so much for fun. Now we get down to the hard stuff.” He took time to think, stirred about in his papers and produced a certain document.