Wilmington daily commercial., 1873-09-19
The Opinions of james L. CIashorn.

representative OF the Bhlladelph1a PfeSs nat
the following interview with James L. Claghorp
Eeq.. Of that city, president of the CONNER
cial Bank
Reporter. have called on you, Mr.. Claghorn
knowing your means for possessing reliable in
formation, to make inquiry as to the cause o
the late failure, and its effect upon the business
community.
great surprise to every one in the country and
so far as can ascertain, no one can
sURHIsE THE CAUSE.
believe myself. however, that too large invest.
ment in Northern Pacific Railroad has been made
by the firm, and for any one firm to undertake
such an affair, entirely unaided, think was very
Reporter. What connection had Cooke with
the Northern
Mr.. Claghorn. Why, they were the real build
ers OF the entire road up to its present point and
were at the same time the principal owners of
the stock the bonds representing which have
been distributed and sold to q large extent.
Reporter. At what price were these bonds
sold
MIR Claghorn. They were selling at par - at
3-10 OF late they have been taking these
bonds in, and have been advertising that they
would return to the Rix-per- cents. With the
feeling that have for the Mcssrs. Cooke and
their trm place
MUCH MORE CONFIDENCE
in the card which they put upon their building
than do in such notices that are issued ordna-
riy
Reporter. Has not this failare been anticipa-
ted
Mr.. Claghorn. Well, to degree yes-no fail
ure exactly, but a difficulty of some kind has
been apprehended. 1t ID wonderful that they
have stood the pressure 80 long, owing to the
fact that they have been running Pacific down
so fearfully of late.
Reporter. Who do you mean have been "run-
ming it down ?"
Mr.. claghorn. Those who have been opposed
to the issuing of its stock.
Reporter. How, or in what has this opposition
had its origin
Mr.. Claghorn.-well there has been a good
deal of jealousy in New York touching this stock
owing TO the fact that PHILADELPHIA has been the
parent of the road They would like very well
to sec the enterprise fail through them, and have
done
EVERYTHING IN THEIR POWER
| mean rival corporations and brokers who are
in their interest-to have the whole thing become
a fzzle,
Reporter. How did the firms connection with
the road effect their failure
Mr.. Claghorn. The firm had To make large
advances toward the construction of the road
and they did 30, believeing that the bonds would
find a ready sale in the market, and by that
means they would be made whole.
Reporter. What effect will this failure have
upon the banks?
Mr.. Claghorn don't think that Mr.. Cookies
failure will directly affect the banks, but it will
create desire upon the part of many people to
haul in !" that 10 all
Reporter. What will be its
EFFECT UPON THE MERCANTILE COMMUNITY
Mr.. Claghorn, 1 do not think it will be as dis. |
lstrous as the panic Of 1857 by any means. At |
hat time the Ohio Insurance Company's depos- /
ts were with the people at large, and when they /
faied, general panic was created all over the /
country. In this instance, depositors, l think, |
rave been protected. 1t may cause them some /
lelay, but think that that will be all.
Reporter. To what class did the firms deposit
ors belong?
Mr.. Claghorn. They were generally those who
lad a surplus for deposit aud did so deposit it /
imply for safe keeping. l do not think that
here were many business or running accounts
With this firm.
Reporter. You say that the banking interests
will not be affected.
Mr. Claghorn. do. That is, it will not affect
he banking interests as connected with the mer-
antile community.
Reporter. Has this antipathy to Northern Pa
ifics had existence in New York alone?
Mr.. Claghorn No, not exactly; there have
'een ss many bonds floating in Europe of late
hat the purchasers there are becoming afraid
4 them in some instances with good cause, |
nd when the fears or
SUSPICIOUS OF A BANKING COMMUNITY
re aroused, the good ones must suffer with
he bad. There is no question about this fact
hat there has been far more money put
ITO these corporations lall over the country,
nan there onght TO have been.
Reporter. What do you think of the occasion
n which this failure has happened?
Mr.. Claghorn The disaster comes at time
hen we are feeling the losses of these great
res all over the country. Boston's fire and
,tence, without anything left to show for it,
Ir. Cooke may have had this fact in view in his
orking of the Northern Pacific, and thought it
etter to stop when he did than further have
is firm encumbered. l always think that at a
me like this it is the duty OF every citizen to
old his head up, and never carp when these
lings occur.
THE HIGH RESPECT
nat have for the members of this firm and the
nowledge of what good they have done the
lem, and they are entitled to the sympathy Of
very high-toned man.
Reporter. Has the failure affected you?
Mr.. Claghorn. 1t has not.
Reporter. Who will be affected by the affair? |
Mr.. Claghorn. Those who have interest in |
'rporations, and many private persons will be
lore or less effected These remarks of mine
pply entirely to Philadelphia. In New York
iey have different way of doing business, and
lere the failure may affect many merchants |
nd brokers with whom they doubtlessly trans-
1t business.
Opinions of the new York Press.
The World says Beyond these considera-
further panic, there are two important points
be noted. We desire to impress upon the
nblic mind, now in a condition to listen to a ,
ord of warning. the practical deductions which
'em to us to follow irresstiby upon yesterdays
saster. The experiment OF building railroads I
ith borrowed money has been fairly tried, and |
ust now be abandoned as failure, 1t demands
II its success protracted run of good fortune /
hich no undertaking has right to count upon. i
lstead of raising all the cost Of railroads by
ortgage bonds, with their half yearly interest ,
ays, those who construct them must place |
rye proportion Of the cost at the risk of the
lsiness.
The Sun says The chief cause of Jay Cookies
ilure is the attempt to build the Northern Pa
tic Railroad. That enormous and ill-considered | :
was sufficient to exhaust the strong
It resources. 1t is long since we had such a f. {
lncal storm as now RACES. But when it clears !
the air will be more wholesome. There will
} less reckless speculation fewer railroads ,
Ill be built on credit alone.
he Feeling In nWilminatOn-0pIniOns of Flnnn-
cial Authorities. :
The deep interest in the subject extends to all
asses, but there has not been, at any time, any
'eling of alarm or of much apprehension, IR