New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-12-29
Jay COOKE & CO.'S AFFAlkS.

A POOR PROSPECT FOR CREDITORS
ruv xoprurpN PACIFIC RAILROAD THE soLh or'"N'
or THE r,uuRE-THE FIRM RUINED Di i
TO UPHOLD THE MARKET FOR i'iS NNiL" -
poNns INDIVIDUAL FORTUNES OF THE fAi'iNh"'
,,,ox r1,K SPECIAL CORRESPONDENT OF THE Tribune
pm .nEIPuIA, Dec, 27.-Pubhc opinion iu nnan-
,l circles has settled upon % cents on the uoilar
% The figure which the estate OF Jay Cooke * TO-
Iii n,ohaby Weld it's creditors if closed within
vsa, unaer the provisions of the Bankrupt law II
longer time can be taken for its iguidatlon anal
there should be a rebound from the depression of
thu crisis much larger percentage would be OBJ
tanned About half of the entire assets OF
the firm are in the Obligations of the Northern
Pacific Railroad. which, if thrown upon the
market at once and in body would scarcely bring
nominal price. Some small transactions in North
ern Pacific bonds were reported few days ago to
have been made on the stock market at 20 and col
but these suspected not TO have been genuine
sales. Many of the large creditors are opposed to
the immediate sale of the bonds and other obliga-
tons of the road held by the firm. on the ground
that nearly the entire amount would be sacri-
feed. 1t is suggested by some that all
the assets of the firm, with the exception
of the Northern Pacific securities. should be
converted into, cash aud a dividend de-
clsrod with the proceeds and that the Northern
Pacific securities. put in the form of bonds (which
could soon be due, inasmuch as the firm held bonds
as coaerals for the money lent to the road should
then BE- distributed pro rata among the creditors
In this way creditors who still have faith in the
future OF the railroad, and believe IT will recover
from its present embarrassments, could hold the
bonds while such chose could sell their share OF the
bonds and no doubt get better price for them than
the receiver or trustees could if the whole amount
were thrown By them upon the market
An examination of the assets of the bankrupt firm
makes it more than ever evident that the Northern
Pacific was the weight that sunk them Their contract
with the Company gave them 12 per cent for placing
the loan They got the bonds at s. and sold them at
par If they had succeeded IN dspOsing of the whole
loan before the panic came, they would have made a
colossal fortune from the transaction. AS 1T was,
they need not have suffered by the want of conf
denOe felt by the public in the of the enter
prise if they had confined their connection with 1t
toan agency business and had not supported it
with their own money and that Of their depOsitors.
But their enthusiastic faith in the undertaking led
them to embark more and more in it, and then
when ruin threatened it they put still moro in 1t to
save what they had before invested and so it went
on until the final collapse. To sell the bonds it was
necessary to push forward the building of
the road and a popular enthusiasm
about its rapid progress. The bond sales
did not yield funds enough TO do this, so
jay Cooke d Co. advanced their own money first
and then the money of other people intrusted to
their keeping and took theraIroad bonds security.
After while the confidence of the public in the
road began to abate instead OF increase. Personal
friends of the firm who had been persuaded into
purchasing the bonds wanted to get rid of them and
the firm. to demonstrate their continued faith in the
enterprise, had TO buy them back. Other people
threatened to throw their bonds upon the
market which would assuredly have stopped any
of par Snma of
and to some of the holders they lent money, taking
the bonds as coateras. To what extent they
purchased bonds cannot be ascertaineS, but among
thor assets appear 100000 held as collateras
for loans of which S23 900 went to former official
of the House of Representatives generally reputed
to have giyen great assistance in lobbying the land
grant for the road through Congress. From the
day when the firm began to buy back the bonds and |
make loans upon them their doom was certain. !
Their subsequent effort to themselves was Only
rowing up stream while the current was carrying |
them steadily and swiftly into the whirlpool of |
bankruptcy.
Politicians connected with the Liberal and |
Reform movements assert that the extraordinary |
exertions made TO prevent tho concern from going
through the ordinary course in the Bankruptcy |
Court were for the purpose of hiding important |
political secrets which the books of the firm would
disclose The attempt of Butler and Tremain to
secure the passage of a general repeal of the |
Bankruptcy law that would have been |
especially applicable TO their cases, and |
would have put their estate in the !
hands of trustee of their own selection !
is cited as proof of this These secrets,
it is alleged, do not relate merely to tho furnishing
of money in large sums for political purposes, as
for instance for the corporation fund used in 1872 to
elect Hariranft by bribing election inspectors To
falsify tho returns, but do the National |
Administration and many leaders Of the Admins |
tration party. OF course this is only surmise and |
gossip. IL such secrets exist, they will never be ex-
posed. The record of them, if any there be- is in |
private account-books. to which the public wiz |
mover get access.
1t is stated in financial circles that Jay Cooke has
property invested in the name of members of his
family on which he can fall back. Mr.. Moorhead
is not 80 badly of. The costly house in which he
lives worth, 1t said, S5O000O the property of bis
wife. and be is reported to have given 100000 each
to his daughters long before the firm threatened
with bankruptcy II is believed that Henry d.
Cooke who is accounted more prudent man than
the head of the firm. made some provision for his
family in the days Of his prosperity Pitt Cooke has
q small fortune in the name Of his wife, which was
hers before marriage OF the resources of the other
members of the firm there reports.
JAY COOKE g. CO.'S SECURITIES.
AMOUNTS DUE THE NETWORK, WASHINGTON AND
LONDON HOUSES.
lrRoM Az OCCASIONAL CORRESPONDENT TRrBUsE.l
PHILADELPHIA, Dec. 27.-By the courtesy of
United States Marshal Kerns and Chief Clerk Gregory
your correspondent enabled to furnish THE TRIBUNE