Wilmington daily commercial., 1873-09-19
FIRST EDITION.
THE JAY COOKE SUSPENSION.

THE NEWS OF 1T. YESTERDAY - HOW 1T AFFEcTEl
NEW YORK AND PHILADELPHIA-THE sUsPENsfol
| TEMPoBAHY-Irs EFFECT ON FINANCE AND BUS
INEss-oPINIoNs OF LEADING NEWSPAPERS.
The dispatches printed in the COMMERCIAL
yesterday, announcing the suspension of thu
Philadelphia banking firm of Jay Cooke 4 Go.
caused profound sensation among all classes
as well as general feeling Of regret The nam,
| of jay Cooke has been "household word
throughout the country, since he boldly and sue
cessfnlly aided in maintaining the credit of the
United States during the Rebellion.
OTHER SUSPENSIONS
1t appears that the New York branch OF
the firm did not open their banking house
yesterday morning, at all, and upon learning
this, the Philadelphia house closed it's doors
The Washington houee followed suit and very
soon afterward the LIST National Bank of Wash.
ingtOr, ID. c., of which Henry ID. Cooke is Pres.
ident. and whose business is closely connected
with that of Jay Cooke Il Co., also suspended.
The London house of Jay Cooke, McCnlloch &
Co., it was reported, would not suspend, being
entirely solvent, and telegram was received
from 1t as follows -
D. w. Middleton d Co., Bankers:
'Ihe London firm Of Cookies responds to this
suspension that all drafts and letters of credit
upon them by Jay Cooke x Co., will be duly
honored."
In New York, the suspension of Richard
operator" the latter brokers, was announced.
Their trouble, however, was caused by the fall in
Vanderbilt stocks" on Wednesday. In Phla.
delphia, the banking house of e. W. Clark &
Go, which has been intimately associated with
the Cookies, slso suspended. They made the fol-
lowing announcement:
We have, very unexpectedly, to ourselves
been obliged to suspend payElent to-day, by
reason Of the unusual demands made upon us
for the return of deposits
In very few laya ahall have n atafafn ant
of our affairs to submit to our creditors, until
which time we must ask them to indulge u.s.
We have every reason to think that our assests
are largely in excess of our liabilities.
E. w. CLARK l. Co.
Philadelphia, Sep. 49, 1873.
1t is asserted that the Clarks will certainly
resume business. They hold very valuable
property, including much real estate, and have
not been deep in Northern Pacifics.
STATEMENT BY MR.. FAHNEsTooK
The members of the American house of Jay
Cooke Il Co. are Jay Cooke, VIM. G. Moorhead,
H O. Fahnestock, IL. d. Cooke, Pitt Cooke.
George O. Thomas, James A. Garland and jay
Cooke Jr. The members of the London House
are Hugh MeCulloch, John II. Puleston, Frank
II. Evans and Jay Cooke Il Co.
MIR. Fahnestock, of the New York firm, stated,
yesterday, that for several weeks the uneasy
feeling in reference to new railroad schemes
caused heavy drain upon the deposits in both
the New York and Philadelphia houses. The
balances ran down, until there was less on de-
post with them than at any time during the sew
yerest stringency of last Fall and this Spring.
This drain of money was further increased BY
recent suspensions, and at length, the New York
house was obliged to make heavy advances to
the Philadelphia house, the latter being especial
ly weakened by its cash advances on account OF
the Northern Pacific Railroad. Mr. Fahnestock
said, that of course the different members of the
hrm were possessed of a large amount of private
and personal property, but none of this was
AVAILABLE IN an emergency such as the present
He was not at the present time nor was any
member OF the firm prepared to tell the exact
amount OF the liabilities assets OF the finn.
de believed, however, that all creditors would
Do paid in full, and hoped that the suspension
would only be temporary.
,rATEMENr OF JAY COOKE, ,HIMsELF-THE NORTHERN
PACIFIC RAILROAD.
In an interview with a newspaper represepta- |
i've, last evening, Mr.. Cooke was asked as to |
whether the embarrassment resulted from any |
with the Northern Pacific Railroad, |
md said: Large advances had been made to |
he Northern Pacific and Lake Superior Rail- |
Dads, but it is proper to say that neither of
hese roads would in any way be crippled by the
of the house." Mr. Cooke said I
hat everybody in the course Of business had re-
'erHes, and it was but natural that his house
should have theirs.
The announcements of Jaw Cooke * Co that
hey will pay depositors. that they hope their
suspension s only temporary, &c, are regarded |
with confidence by many persons, who are in a
ltuatlon to form sound judgment. MIR. James
SCnerlght, OF Hood, Bonbright. Co., Phia-
elphla, said very concisely, in answer to a ques-
ion as to what he thought of it II think this
flair will blow over in few days, and firmly re-
ard the statement of the firm as true You see
hey saw that they had gone just as far as they
onestly could with this Northern Pacific Rail-
cad and they stopped, rather than retrench
themselves upon that which did not belong to |
hem. don't think penny of their depositors,
money has been wasted-a thoroughly honor
bic house. think they strained every nerve
. meet the emergency. The failure will not
fleet the dry goods trade at all"
TOM SCOTT AND THE PENNSYLVANIA CENTRAL.
Repeated rumors that Tom Scott has failed"
rculated yesterday. They were positively and
denied. In New York, Drexel |
lorgan Il o. supported the credit of the Penn
Ylvania Railroad by offering to buy 81 900 OOO of
$ paper att - per cent mouth. Last evening,
Phuadelphla prominent bank president |
aid the Pennsylvania Rrilroad is all right They
ave ten millions of dollars to theit credit in
london from bonds just negotiated. II they
ad not the shock might be a severe one He
ontinued jay Cooke ought not to be al
)wed to go down. His name has been so inti- |
lately connected with the negototions of the
government bonds that this will unsettle the |
Dnfdence Of European holders and they might
end their five hundred. millions back for re-
emption. thereby placing the Government in |
n ugly position, to say the least.
THIS GENTLEMAN THOUGHT
hat for this last reason. as well as for the re-
ard generally borne toward Mr. Cooke, and the |
lembers of his house. it was the best policy of
IeSbaDking and financial interests OF the coun-
y to sustain the house, and put it on its feet
gain.
WHAT j. EDGAR THOMSON SAYS.
Reporter. Mr. Thom son has the Pennsylvania
abroad lost anything or is it in any way in-
Olved in the presumed failure Of Jay Cooke x
o.. or E W. Clark Il Co?
Mr. Thomas. Not one dollar sir! We bave
o dealing with either OF the houses, and haven't
ad for many years.
Reporter. To what do you accredit the fail
re2
Mr.. Thomson. Well presume it is on account
the inability of Jay Cooke Il Co. and their
gents to dispose of the bends of the Northern |
acife Railroad. l have not a cent in the
orthern Pacific Railroad nor has the Pennsyl-
ania Railroad or any of its branches. My con-
ection with the former road as Trustee, was a | 4
ersonal honor conferred upon me individually,
nd not by reason of my being officially connect
] with any other railroad.
Reporter. Has not the Pennsylvania Railroad |
3sired to lease the Northern Pacific
MIR. Thomas 1t has not and never will, and
WIS not dollars worth of stock as remark
] before, Jay Cooke and his agents have no
oney of mine or Of the Pennsylvania Railroad.
BETTER TIMES FOR OTHER BORROWERS.
A prominent Philadelphia wool merchant ]
fought that the effect on the market would be 1
relieve ii, as the big railroad men had been | {