Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-09-27
THE FINANCIAL CONFUSION.
Summary Of Last Nights News.



firm Of Jay Cooke x Co., of Philadelphia, New
York, and Washington, has been prepared by
them 10 be submitted to their creditors. The fol-
lowing Is summary:-Liabilities, - ,lS9, 100. &c.
ASsetS-Bills receivable, bank, insurance. and
other stocks, bonds, and real estate 81 SCI G+Oi2.
Loans TO Northern Pacific railroad company on
S5,'5g,O00; stock of oregon steam navigation
company, Sl,5C0,G00; loans TO Northern Pacific
railroad company, on bonds OF the company,
Si,Cto, 2l5o9; second mortgage railroad bonds,
stocks, &c, $3.50, 1896; total, SIS ,966, 2l215.
The above exhibit is exclusive of Sl,7O1,1 1902
loans Ia the firm, which are fully 'secured By
colateTals. The excess OF collaterals upon these
loans has been estimated and included in the
A PROPOSITION TO CREDITORS
The firm expects SOcn to submit "A proposition
for a settlement with its creditors which, 1t be
ieves, win be acceptable TO the latter although
twin, OF course, eqnire time IN the conversion
OF It's assets. The handsome show ing made leaves
no doubt of Its ability TO pay every dollar OF its
Indebtedness, with interest, and still to leave
surplus OF several million dollars.
GRATIFYING FEATURE
in the above exhibit is the TACT that, although
the embarT aSSment OF the firm has been OcCa-
stoned by its large advances 10 the Northern
Pacific and connecting roads, which il was car
rying during period of unprecedented none
tary stringency, its resources outside OF these
advances are amply sufficient to secure all its
creditors from ultimate loss.
EFFORT TO FORCE TIE FIRM INTO BANK
RUPTCT.
A dispatch from Philadelphia last evening
says This afternoon the house of Jay Cooke X
Co. was forced into bankruptcy on the petition
of the Logan Square Building Association, OF
this city, which was a depositOr with the firm.
Its treasurer, Mr.. Elwood Wilson, learned yes
terday the important fact that the suspended
house had made an assignment of all iCS prop
erty outside Of the state OF Pennsylvania, the
goth instant, to j. Il. Moorehead one of the
members of thefr This being an undoubted
act of bankruptcy, the petition alleging that
fact, and also that the bankrUpts had refused
to pay check for 500 drawn yesterday, was
filed.
AN ORDER TO SHOW CAUSE.
nj no nit G4.ko
court, granted an order to show cause, return
able October LIST, and the papers were served
upon the members of the trim this afternoon.
Your correspondent learned, in an interview
with Mr. Jay Cooke himself, that the assign
ment referred to is not general assignment OF
all the assets Of the firm, bat Is merely trans
fer of certain specific properties belonging to II
and the individual members thereof, situated Ia
other states, and liable therefor TO be taken uu-
der foreign attachments issued against them in
those states as nOn-resdents.
THE OBJECT OF THIS
is TO protect the property of the firm aud OF it,
several members Tor the benefit OF ali their cred
itOrS alike. and 10 prevent any one from obtain
ing priority or preference by first initiating legal
proceedings. Such an assignment, like the con
tnued suspension of cOnlmcrcia al paper Cor four
teen days, is an act of bankruptcy, and the firm
was of course liable TO have such proceedings
instituted i'll any OF the cities where it was do
ing business. The first action in such cases
draws to itself the settlement of all the firm
affairs, and il the bankruptcy proceedings in
stituted to-day should be pushed 10 their bitter
Gnu, luey Will DC CdTTlcu through IN
phia.
WHO SHALL CONTROL THE ASSETS?
1t is believed, however, by the members of
the firm that they will be able 10 submit such a
statement TO their creditors as will prove salts
factory, and that they will be allowed to super
intend and control the management and dispO-
sitioD of their assets, they being of course able
TO realize vastly more than would receiver
outside of the state in charge Of their affairs.
The assignment made here on the 20th inst ant
cuts out all attachments laid against the prop
ertV of the debtors other states Iv q
heavy one laid a few days since against real es-
tate in Cleveland, Ohio.
JAY COOKE WANTS CREDITORS TO INvEsTI-
GATE.
In the interview above alluded 10 with Mr..
Cooke, at which mis- brother, Henry ID. Cooke.
late Governor of the District of Columbia and
the counsel of the firm John G. BuIiitt were
present, Mr. Jay Cooke said that IL would be
well for those of his creditors who were selling
their claims against the firm at a sacrifice to
investigate for themselves aud not rely upon
runors current upon the street Mr.. Built
stated that full exhibit of assets and liahili-
ties of the firm would be made to the CREDITOR
in the early part of next week.
EX-Gov. COOKE AND THE CHASE ESTATE.
EX Governor Cooke alluded with considerable
warmth to the telegraphic report that he, as the
sole executor of Chief Justice Chase, had ell
tangled that trust estate in the affairs OF the
firm and of the First National Bank of Wash
ngtOn, styling such reports as infamous, and
saying that not a dollar had been lost, as the
securities were safely locked NJ ia special de-
post in the vaults of the Fidelity Trust com
pand, of this city"
EFFECTS OF THE PANIC ON THB PRODUCE |
MARKET.
At the New York produce exchange yesterday |
afternoon, matters were i'll a gloomy condition. |
Prices, on the whole, were without material |
change, yet TO sell freely large decline would |
have been necessary. The first failure at eX- |
change yesterday was very respectable though |
not one of the largest houses, whose credit has |
hitherto been first class, and which has been |
forced to succumb in consequence OF trouble in |
the export trade.
n
which began just before noon yesterday, was |
the feature of the day, and at II. IS O'Clock the
price was 1l2A and at l O'Clock heavy sales 1
were made at 1l3b.
The great necessity for borrowing gold, and |
the fact that much of the gold on the market |
was really being boarded, created large de
the street in the way OF stocks, for which there
were two sets Of prices. The excitement in the |
gold room was intense, and in few minutes /
everybody seemed wild, prices spreading TO /
1l3E. Gold closed at III,
THR UNION TRUST COMPANY.
The committee, which has examined into the /
accounts Of the Union Trust Company report |
trust securities amounting TO S45l ,26S, held I'M
der order of the courts and deposited by indl- /
viduals, are correctly accounted for, due the /
company, according TO the books, -, 500, BPS, |
including one and half millions on demand |
against the Lake Shore and Michigan Southern /
railroad. No securities can be found for SIPS
5OO, and it is believed that the amount has been
distracted by the late secretary. The balance /
TOTAL ASSETS ARE 81 HI 6l6.
The debt OF the Lake Shore company, il If
believed, will be settled at an early day. II the
company is forced TO sell securities other than /
Lake Shore the loss would not exceed $3.50, 900,
less than five per cent, but the eventual loss
will be below this figure. The amount of the /
cOmpanys liabilities for deposits and credits TO
balance when placed in the hands of the re-
ceiver, as appears from the books is sc ,253 ,5i8
The committee believe this amount correct, and
entertains the confident hope that the receiver
will soon be able TO realize from the assets OF |
the company funds sufficient TO meet its liabili-
ties and enable Ii to resume its business, but il
is evident that no day for this purpose can now
be named.
HEAVY DISCHARGE OF woRKMEN.
The Todd q Rafferty, manufacturing cOmpa-
ny, at Paterson, New Jersey, discharged ninety
three men from their boiler and machine shops
yesterday. Still further reductions are con
templated. The employees Of the Pennsylvania
railroad at Mount Holly struck on account of
an order reducing working hours to eight hours
per day.
A SUSPENSION AT ATLANTA, GA.
John II. James, banker at Atlanta, Ga has
suspended, but will resume in few days His
assets double his liabilities. Leading business
men and bankers guarantee the solvency and |
reliability of James TO the amount of s2O0OOO
WHAT THE THUNDERKR SAYS.