Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-10-06
The Financial situation I'm washing
fnn

Financial affairs continue to improve in this
city. The operations Of the clearing house on
Friday footed up s1O,O56.43, and on Saturday
s9,O6s.6o.
THE ASSOCIATED BANKS.
The associated banks, acting under the ad-
vice OF their committee, are now paying out
currency more freely, and using the clearing
house certificates only for settlement among
themselves. Some of the m are now paving cur
rency in full for all but the demands of other
banks in the organization; the primary object of
which beng to arrest a currency panic, seem
TO have been accomplished, and we hope soon
that the only effect of the recent events will be
the establishment of a regular clearing house in
Washington, as in other cities.
JAY COOKE & co.'s PROPOSITION.
paper, embodying the proposition OF jay
Cooke & Co., to assign their property to Hon.
f. A. Rollins, in trust for their creditors, was
circulated in this city on SATURDAY. for the sig
nature of such creditors in Washington rs were
willing to consent to the proposed plan. The
following were among the signers: r. Nj. Cor.
Verdi, George Cowie, Gen. IL. V. BoyntOn, j.
ID. Patten, jr., G. ID. BoyntOn, Col. c. L. Lar
ned, Gen. Benz. Alyord, K. ID. Clarke, S. Il.
Clarke, L. W. Rice, Moses Kelley, HaIlet Kill
bourn, W. H. Wells, WIN. W. DUNCAN, Hon. G.
w. Kendall, Juan Boyle & Co., H. Lincoln, j.
II. Squier, j. p. Milburn Il Co., Daniel Lough-
ran, and Hon. Thos. j. Durant.
JAY COOKE AND co.
To the Editors Of The Star article with
the following encouraging heading appears in
the morning papers of this city:
"Jay Cooke * Co. Satisfactory arrangement
with their creditors"
AS not only the creditors OF this well-knovn
firm, but the general public are interested in
any proposition looking to the adjustment OF its
affairs we have taken the liberty of asking you
to publish this communication. IL is evident
that there are two distinct ways of settling up
the affairs of the frm-the one judicial, the
other extra-judicial. The firm itself prefers the
latter, and asks certain of the prominent cred
itors to adopt it.
Some of the creditora however, have mani
Tested a preference for the former, by insti-
tutiDg proceedings in bankruptcy; notably the
cases pending In the Supreme Court OF the Dis
Let as examine the reasons in favor of the sep
crate ways.
The firm has selected the president of the
National Life Insurance Company OF the
United States" in which company il has I'M
dOubtedly controlling interest, as its trustee
The firm likewise proposes to surrender all their
partnership and private property. But the iu-
dicial proceeding will also allow the appoint
ment of trustee, and the Jaw itself CONVEYS all
the partnership and private property to the trus-
tee. To this extent the two modes are substan-
TALLY identical.
We are advised that the petitioning creditor in
the suit pending in this District would consent
willingly to the appointment OF a trustee, for
which the bankrupt act itself provides and to
anyprecautionary arrangement that would limit
the compensation of the trustee to a reasonable
amount. That he prefers the judicial mode for
the following amongst other reasons The trus-
tee Will act under an oath and be required 70
give bond commensurate with the vastness OF
the trust estate; the latter An impOrtat conSid-
Grafton in these modern times.
The truste will at all times be subject TO the
surveillance Of the creditors and the direction
OF an intelligent court; can, from time 10 time,
when necessary, have his acts ratified by the
court to give them validity and bind all the
creditors. This should be considered, because
1t is not possible TO make any private arrange
ment that will embrace and be obligatory upon
all the creditors.
A judicial proceeding will enable the credit
Ors to inform themselves thoroughly of the ma
ture, extent, and value Of all the assets OF the
finn, and particularly OF that which most inter
ests the creditors Of the Washington house, the
assets that belonged to Ii at the moment OF sus-
pension, and whether it was composed OF the
same members with the alleged branch houses
in New York city and Philadelphia.
Why, we ask, would 1t not meet the exigency
Of the case, and best subserve the interests OF
the creditors, and be abundantly Just and fair
to the honest and honorable, but most unfortu-
nate, firm of Jay Cooke & Co. to agree upon
and adopt the following plan OF ad justment in
one OF the pending proceedings in bankruptcy,
remembering that the government is largely
interested in the North Pacific railroad, which
promises to be the most valuable Of the assets OF
the firm: Jay Cooke q Co. to nominate one
itors of each OF the houses of the firm one each,
making five in all. This would include and be
obligatory upon all the creditors of the firm,
and prevent any unreasonable and dissatisfied
creditor from instituting proceedings hereafter
to annul the acts OF any private trustee. This
will allow magnanimous creditors, il the ca
lamity prove to be greater than now believed
which may become necessary and proper.
A CREDITOR.