New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-19
FAILURE OF JAY COOKE & co.

THE BOLT THAT STARTLED wALL-sT.-THE sUSPEN-
NORTHERN PACIFIC BAIIROAD-THEIR LIABLE
TIES SAID TO BE BETWEEN THREE AND FIVE
MILLIONS.
Early in the day. the rumors which form such an
lmportant part of Wall-st operations were revived
with increased emphasis The names OF houses
which even the most INSCRIPTIONS stock jobber had
heretofore spared passed merclessly from mouth to
mouth. First came renewed rumors of the embar-
easements of the New-York and Oswego Midland
Railway Company, and their financial agents
George Opdyke q Co. Statements that some bank
ing institutions were on the brink of failure were
also made with depressing effect. These rumors
false as they were made the rounds growing in evil
influence as they became more and more distorted
The browning rumor of the day was this
time unfortunately too true. Jay Cooke a Co., the
Government fiscal agents, who had stood SO high in
financial circles throughout the world, were I'M
haired by reason of their connection with the North
ern Pacific Railroad, and would probably be Obliged
TO suspend This rumor which was in the air early
in the morning spread like wildfire, but although
dealers were disposed to believe almost anything 1t
was still rather difficult 10 convince " the street
that the foremost American banking house in this
country was not able to meet its obligations. OF
coursp measures were Immediately taken to verify
the statement and at noon 1t was oihcialy an
pounced that Jay Cooke d Co. had suspended. This
news was Immediately flashed over the wires OF the
stock and gold indicators around which groups had
been lowering all the forenoon, and the dispatch
was read to all who within hearing. The effect
was electric and jay Cooke Co.'s Offices soon
crowded with an anxious and curious throng.
JAY COOKE d co's-wITHoUT.
Al about D. H.. when the news became generally
known the sidewalks on Wall. Nassau, and Broad
SITS were thronged with mixed assemblage OF
people Few of these had any pecuniary interests
involved but having nothing else to do, concluded
that they could as well afford to spend their time
there as elsewhere. These formed a swaying,
aeitated. and excited mass which 1t was difficult to
peDetrate The crowd stretched over the sidewalks
into the center of the street and even filled the
Easements of contiguous buildings 1t was "A ride,
imnertnent crowd for il peered insultngy into the
faces of those who had occasion TO enter or leave the
offices of the unfortunate bankers Not content
with their places they clambered over the ratings
filed the basement peered through the windows
and even invaded the Offices. SO intolerabe became
the nuisance that the bankers were obhged 10 nave
detachment of police and detectives the former 10
dispense the crowd. and the latter to nuihfy the
operations of pekpockets and sneak thieves, VINO
were on hand to avail themselves Of any opportunity
for plumber The officers were then permanently
stationed around the entrances with orders to DIS
perse all loungers and keep the sidewalks clear
JAY COOKE Co.'s-wITHN.
Inside the scenes were more interesting. lhe
interests or sympathies Of those who congIegsted
there beng more directly affected, there was bet
ter opportunity to study character. Those who had
money on deposit Of course wished to draw u out
and were exceedingly disconsolate when they were
! informed that the firm had suspended payment
large number of drafts which fell due were returned
unpaid to those who presented them, and were then
| protested. Although somewhat agitated, II was
not clamorous throng. Finding that moth
| ing could be done, all appeared disposed
| TO make a virtue of necessity and 10 hope for the
best. The clerks within nervous, aud very
busy in Strengthening out the details Of their depart
ments 80 that general statement OF the condition
of the firm could be made. The members OF the firm
were closeted together early in the day devlslnR
| means for the relief of the house They wonld not
| see any one. They sent out statement. how
ever, that the trouble was owing 10 the demand
upon them for money by their Philadelphia
house and the withdrawal of deposits from Their
New-YOrk house The general bookkeeper stated
that the suspension was only temporary, being
caused by a lack of available funds To meet the