New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-13
THE CASE OF JAr COOKE 3 co.

BAYKRUPTcY PROCEEDINGS AT PmLADELpInA-
CHARGES OF FAvoMTIsM-CHAScEs THAT RE-
CEIvER WILL BE APPOINTED
[rRoM AN OCCASIONAL CORRESPONDENT OF The rhiBusSI
PHILADELPHIA, Nov. 12.-The firm of Jay
Cooke Co. closed it's doors Sept IS in philadelphia
Washington and New York The frat petition In BANK
rnptcy 10 This city fled before Judge Cadwaiaaer
on Sept 10 by the Logan Square Building ana Loan AS
sociaton depositors. On the following day Samuei
Josephs fled q second petition Oct a. John steer neo
third and Nov. four petitions were filed asking inc
Court to intervene All OF these papers we're duly served
upon the members OF the firm residing in this city, and
orders TO show cause made by Judge Cadwslader All
these orders have been postponed week after week
AZ the reauest OF the debtors IN the hope that they
eonld enter into a satisfactory arrangement Win
their creditors under the deed OK uust vi
Oct ] appointing ex-Commssioner Rollins uustee'
Kno wing that the Jurisdiction OF this Court had az
taehed TO tho exclusion OF Washington and New-forx
proceedings, the petioning creditors here were oS
posed TO grant these delays but this morning the
United states Court was crowded with the counsel OF
the petitioners urging final settlement OF the mater
The views expressed by Judge Cadwalader have an I'M
porant bearing character Of the proposed settle
ment and the duty OF the debtors in the premises, and
indicate what his may be In the matter
Messrs Vim L. Hirst VIM. g. Price, Brinke, Dleni'
Wilson, and Others counsel for petitioners and interVeh-
ing creditors. into Court this morning all MAKING
return they had served tho order to show cause Oh
such Of the defendants lived in this city, MI Hirst
said that there might be conflict OF jurisdiction no
desred 90 have an order of publication on the nonres-
dent debtors. Judge Cadwalader did not understand
that where the residence of person out Oh the JuSdc
ton was known there any need OF publication I'M
der the Bankrupt law. Sitting 10 commercial court
he thought that service &C place OF business was suf
dcient; however might be rash to hazard any ques
lion and an additional delay OF week or two could
He
that If the SO papers had been sent by mail these gentle
men would have ordered an appearance, as they are
men OF business and know their duties 10 thelr creu
tors. WIN. g. Price, representing several pettoners'
read the return the first petition which SAID that jay
Cooke accepted service verbally for all his copartners
This acceptance OF iseryce the Judge ruled must be in
writing Mr. Price then asked that the four members
of the firm who had been duly served be adudcateo
baukrupts Judge CadHalader, not understanding him'
wen, on to read the following order which seemed to
be ptabe To sll except Mr.. Price
District Court of the United States Eastern District OF
Pennsy Ivania-In Bankruptcy.-No l,7O7 Case Of Jay
Cooke agt g. MoOrhead, George G. Thomas. Jay Cooke
ir &c, trading Jay Cooke n Co., alleged Daakrupts
is3 Nov H. On petition OF Logan Square Building As
ISOLATION and several subsequent petltohs
Wednesday 10Th inst 10 service OF the several
orders show cause WHY &c. to De made, SO lar rs u
OF this order III The Public LedGer Of Philadelphia,
Eatio'.at Republican OF washington ana oone'G ,h
Last Insertion % he later than the ga INST rms
ordp
any personal other service that may be proper or as
preciudiBg applications by any party interested az any
time.
The Judge said be had read the several petitions and
given estecal attention TO the exhibit xed which
was copy of an instrument dated Oct l. While it was
evident by paper that the debtors wanted to arrange
with their without the intervention of Bank
rupt Court yet in the infancy OF bankruptcy proceed
ngs IL was not surprising that the debtors should not
understand how to avoid acts Of bankruptcy Ii the
scbedues are priDted placed open 10 view, and II
s understood that the debtors Will not meddle with the
assets except by consent OF the creditors commttee,U
il extremely probable that these proceedings VIII not DO
pressed or that satisfactory arrangement may De maze
under the 4sd section of the Bankrupt law But they
cannot expect that the present state Of affairs can con-
,inue much longer. great while has now elapsed,
louc enough 10 expect a dividend and there has evil
IDENTIFY been no desire 10 press for an adjudcaton'
which ought u DO made under the 43d section Oh the
oct The Judge said his remarks were general so Tar as
they related TO the want OF appreciation by DEBTORS OF
their duties to creditors, and he Eoped LIS Suggestions
were not considered intrusive
John c. Bulltt, representing the firm, observed that
II was the desire OF the firm preserve every penny OF
the assets with sacred fidelity for the benefit OF cred
tors The Judge thought that the clause IN the agree
ment putting in the power of the debtor 10 make SET
Elements with the consent OF majority OF the committee
selected by himself would be a serious objection. Mr
price again asked that the four Phadelphsns be adiudi
now suits were being brought, judgments recovered,
and the bankrupts were actually making settlements
with rher favored creditors. Here the Judge inter
rupted Mr. Price. saving he could not hear such
matters unless they appeared in afidavits' wmch
could be presented on "Wednesday next dc
,houcht there ought TO have been an effort
made TO serve people but their creditors might
have expected appearance without actual service
however these gentlemen the best Judges OF that
themselves" He thought that the paper OF Oct.
had been made of the first pro-
ceedugs bankruptcy the creditors had full control OF
II and a summary would include Mr. Rollins, the
intended trustee These gentlemen have created DIM
entity nv this very paper dividend OF at least i've per
cont ought 70 have been declared before this IL is the
most perpcious thing possible for them TO buy Of
their creditors without first making dividends cir
T"t, srsyiISI that the dcbtOrs had not aced under
that pape in any way they had not signed IT, nor had
tho trustee signed It.
Jndce-Then the act OF bankruptcy ia OF the mos
x,-raroted character I don't believe that anything
can bc done that paper lt WOuld Do GROUND Tor
summary induction, Jut the paper Indicates % spirit
Which can be carried OUT under the ~ sectloh My
Fell or some citizen Receiver These debtors can
nor xpect to administer their affairs except under te
creditors immediate eye. "a,
The Judge, however, took no other action thah tnr
order given above. Mr. Price said he would come in on
"Wednesday with afidavts OF the statements made.
lay Cooke senior junior William q. Moorhead aud
George q. Thomas.
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