The true northerner., 1873-09-26
Jay Cookies Downfall Not Surprise.

Washington (Sept. 22) Cor. Chicago Tribune.
A warm rivalry has long existed be-
tween the two banking houses of Drexel
Bros. and Jay Cooke Il Co.; and Jay
Cooke attributed to this much of the
opposition to his railway So much
doubt has enveloped the affairs of Jay
Cooke and Riggs bank that other bank
ers here would collect checks on them
without waiting an instant. In short
there is little excuse for anybody of or
dinary sagacity losing money with the
Cookies. Mr.. Knight, director of the
Pennsylvania railroad, told me three
months ago that Jay Cooke was passing
over the critical months of his career,
and that there was the barest possibility
Of his survival, dependent wholly on the
sale of his railroad bonds in Europe.
Mr.. Hamilton G. FAINT, banker of
Washington, told me nearly fortnight
ago that Jay Cooke had not made cent
since the close of the war; that in a
single operation of Pitt Cooke, in New
York, namely, Mariposa stock, the firm
had lost $3.50, 900, which frightened e.
w. Clarke out of the firm.
1t is we'll known here that Gov.
Cookies mansion at Georgetown has
stopped at the foundation ever since the
same event. 1t was the dream of Jay
Cooke at the close of the war to connect
his house with the Rothschilds and Sc
cure their aid to put the Northern Pa
cific bonds on the Continental market.
Ex-Secretary McCulloch was to be the
medium of this alliance. Mr.. Sargent,
of Duluth, has been about this business
for two years with diminishing pros
poets. Every business man has re-
marked that the completion Of the
Northern Pacific railroad, at the ratio
of the cost of the part already built,
would require 5000, 900, 900, or $l4, ,000,-
900 annual interest. That the road has
reached its present terminus is not the
least remarkable of Jay Cookies per-
formances. 1t has been lavishly
built and much plundered, and Mr..
Cooke has been defeated in every at
tempt to correct the behavior OF the
Puget Sound Land Company. In this
concern Thomas A. Scott had an invest
ment of 100000 which he still retained
about one month ago.
The opinion entertained in Treasury
circles of the character of Jay Cooke is
that he is man of honest intentions,
too much controlled by his imapina-
tions. Bankers of conservative tenden-
cies never admired him, although ad-
hitting his ability to rouse enthusiasm,
and push the sale of securities. He has
not profited by the example of his towns
man, Robert Morris, who did like
work for the Government in his day,
and then, in a land speculation, lost his
all and retired to a debtors Jail. Mr..
Cookies villa property is of an extensive
but unproductive character, and, at a
time like the present, would not bring
above half million, though he has up
wards of 1000 acres in it.
About one year ago he cut down his
large retinue of servants, committed the
housekeeping to one of his married
daughters, and stopped his former Law
ish hospitality. 1t was observed also at
Cape May, this summer, his family
stopped at small cottage hotel, and
dispensed with carriage. 1t was ap.
parent that fates were closing in against
him, and that both his Life Insurance
Company and his Trans-Continental
railroad had been adjudged mistakes
by the fnanciel interest of the coun-
try. The unanimity with which
the Northern Pacific railroad has beer
condemned by bankers is unprecedent
ed in our history, said Mr.. James Brown
some time ago. Mr.. Cooke, however
never grew discouraged, and within the
past week insisted that he would live tc
finish the road.