The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-09-19

reigned in the "Warsaw OF the bulls and bears''
sky, came the report that the well known house Of
Jay Cooke d Co. had suspended payment
| A reporter was yesterday despatched to ascer-
tain the views OF prominent nnanciers this
gigantic suspension. The head OF one OF the largest
banking houses in Wall street was the first gentle
man visited by HERALD representative, and who
requested not to have his name mentioned. In re-
~ sent this yesterday morning, about ten
O'Clock, to the ONCE OF Jay Cooke Co. to ascertain
when word came back that they could give no
quotations This looked to me very suspicious,
ana and az once MADE up my mind that the house
failed, Shortly after the news OF the suspension
came"
'what is your opinion Of the failure, and what
'As near as l can learn they have for some time
past controlled the major portion OF the bonds OF
the Northern Pacific Railroad, and recently they
| attempted TO carry the amount IN Its entirety.
such load could only be carried by the whole OF
wall street or the government. YOu see the road
is not peopied to any extent, and through freight
never pays Passenger TRAFFIC is the lie OF a rail-
| labor-but freight Is different. Then the competi-
ton is at present too great, and the earnings OF
| the road were comparatively nothing"
by this failurcs'' - '
~ am sorry to say that in the main mostly poor
people will suffer by this disaster. In the West
there Is scarcely q widow who has saved 800 but
what has invested the money in the bonds and
Identified with g. M had been occurring on the
great merits OF this road, and pictured in glowing
c cs of OF SAID costeras Whether any
amount will result to these stockholders only
time can tell. For the present there viii not likely
be much demand for these bonds"
GLOW are other financial institutions affected,
and where do you think this crash Will stops'
failures compared with that OF Jay Cooke Il Co.
DICK Schei who, 1t Is alleged, was heavily in
way Company, New YORK warehouse and Security
Company and staggering load OF western Union
Telegraph STOCK, is reported to have suspended.
ap sus ESs HpR o1s n snd &
MnsaS e qtIs HE Chsr Fun e
lions II by three O'Clock no more failures are re-
ported think the storm has been weathered, and
we will hereafter sail in smooth financial sea
M, - have Just noticed by the Stock Indi
Gator that Western Union Is or ten per cent from
.The price OF this stock has gone ieariIy over it's
intrinsic vaue the company has paid no dividend
since 1870 and the stock has been regular loot;
uneasiness this stock Is the first to be kicked over
board"
MIR. Dickey, of Brown Brothers h Co., was next
sought for and found at his office, corner OF Wall
and Hanover streets This gentleman said he knew
very little about Jay Cooke & CO.'S transactions.
The business of his house was mainly in exchange
with their firm in Europe. In answer to the ques-
tion how the failure affected exchange on England
he said that the demand yesterday was not very
active and that rates were about the same. Brown
Brothers do not make advances on railroad con-
the financial Juror.
other prominent bankers who were visited by
the cause of Jay Cooke Co.. suspension; but gen.
orally speaking there was considerable sympathy
expressed in their behalf, and, with the exception
OF the grasping propensity OF the house In trying
to control exclusively the gigantic enterprise OF
the Northern Pacific Railroad, 1t is looked upon as
o public calamity
THE RUMOR OF THE FAILURE OF GEORGE oPDYKE
two days It was but natural that in the
tvr nlAiI If n Vnifn inlr
cincts Of the gold and stock market therumors con-
corning this house should be greatly exaggerated.
Nassau streets, MIR. Opdyke was found busIy en-
gagged at his desk. and stated In reply to the ques
ton whether there was any truth in their reported
the story. He sd:-"We are fully aware of the
excitement prevailing. and on account of our
been made President 81 the New York and Midland
Railroad, and whose paper has gone to protest, we
that we have been compelled to succumb. You
may say that our banking business Is in no way
or manner affected by the AFFAIRS Of the Midland
Railroad, and that we can pay five dollars for
every dollar Of our liabilities. We have all along
anticipated Q stringent market for this TALL, and
The firm OF George Opdyke n Co. is not affected BY
the trouble George Opdyke endorsed some of the
construction paper as President" but only
THE MIDLAND RAILROAD.
The following is short history OF the railroad in
The New York and oswego Midland Rail-
road is 2 through line from New York TO
to Middletown, N. Y, 24S miles, with branches
from Norwich to sciplO, IS miles; GulIford to
miles; summitville to Elenville, ~ miles,
making a total of S79 miles. The COM
Midland 'a and Sonsclair railroads. in New Jersey:
portion OF the main line from ScipiO to Buffalo,
known as the western extension, Is to be con-
borers and others became clamorous for their pay,
and there was change in the directors. Dewitt
c. Lttlejohn, then President and other directors
resigned that new capitalists might build the
road These newcomers were to take $4,000. 900 OF
the bonds Of the nc the proceeds from
sum was reported as subscribed George Opdyke
was elected President, and b. Schlesinger Trea-
surer. For time the work went on smoothly.
The bonds were to be taken in instruments. and
some OF the subscribers have not yet paid their
subscriptions anu hence the protest.
STATEMENT OF THE DIRECTORS.
The directors state that the company has not
formally suspended, but Is simply IN temporary
financial distress, about $1,000. 900 Of It's obligations
having matured which the company had not been
able to meet. The hoatmg debt OF the road was
subscriptions will be received from directors the
Syndicate. Among those who are either directors
are Dewitt c. Ltrieohn, Delos E. Culver, J. w.
Merchant Cortland n. T.; Abram s. Hewitt John
r Clarke, OXFORD, n. Y; Henry =. Bartlett, Walton
whelen, Philadelphia, and Henry r. Low, Middle
town.
A receiver was appointed by Judge Blatchford
in the United states Circuit Court yesterday, the
particulars of which will be found among the Court
news in another column.
Interview with George Bliss.
HERALD reporter also called at the office Of
Morton, Bliss Co. and had conversation with
Mr.. George Bliss on the great financial break.
REPoRTER-what is your opinion of the cause Of
the Jay Cooke failure
Mr.. BLiss-Jay Cooke himself is to be blamed
The Northern Pacific Railroad has been his hobby
all through. and there has been a vast amount of
money sunk in that experiment that it Will take
years to realize anything from. The house
here and in Washington have been contributing
their RESOURCES 60 sustain the one in Phladelnh,a