New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-03
FINANCIAL SUSPENSIONS.
A NEW DANGER TO TIE BANKS.

A NEW DANGER TO TIE BANKS.
BANKRUPTCY PROCEEDINGS AGAINST JAY COOKE
CO. AT wAsHISGION-ALL TIE BANKS THAT
HAVE SUSPENDED TIY PAYMENT or CURRENCY
EXPOSED TO LIKE PROCEEDINGS Az THE END OF
FOURTEEN DAYS SUSPENSION.
IBY TELEGRAPH THE TRmUNE.f
WASHINGTON Oct. 1.-The IL days required by tho
Bankrupt act having expired to-day Of she ne
positors i'll the Washington house of Jay Cooke *
Co., holding per cent interest bearing certificate
of deposit Cor S05O0. fled petition in the Supreme
Court of the District asking that this firm be de-
clared bankrupts. The usual warrant was issued
requiring those concerned to appear in eight days
and answer why they should not be declared bank
rupt. As in this case fraud is charged within the
meaning of the Bankrupt act. the members of the
firm who are charged individually have right to
demand trial by jury. and in the mean time pro-
ceedng under the petition would await verdict
by jury. Considerable interest is felt here TO
ascertain whether tho proceedings instituted in
Philadelphia and temporarily postponed by consent
of all concerned will be again postponed so AZ to
give priority to the suit IN bankruptcy here. Friends
Of the firm say tonight that it will endeayor to
make such satisfactory offer of compromise to its
creditors rs to insure the withdrawal of all pro-
ceedings both here and in Philadelphia.
The proceedings to-day have caused pretty gen
eral discussion Of the question whether banks. in
Guiding the National banks can be forced into bank
ruptcy providing they refuse for ii days to pay de
pOstors. Among the law officers of the Govern
ment, officers of the courts, and those in the Treas
uTy having TO do with its law business, there ap-
pears to be entire unanimty in the opinion that on
the l4th day following such suspensions as are now
common in all parts of the country. if proceedings
in bankruptcy are filed, courts will be obliged to
nj Coz 10 OF 10
appear and show cause why they should not be adj
judged bankrupt. The opinion here is also general
that the majority OF such banks cannot avoid bank
ruptcy under these proceedings In estimating the
period of IA days, the day of suspension is not
counted, and petitions may be filed on Che 14th day
thereafter. This time will expire for the NewlOrk
banks on Monday, and for large number of West
ern banks during next week. While in the of
National banks the law does not provide for appoint
ing receiver for failure to pay despOSitOrs the Con-
troller Of the Currency will not fail to take notice
of complaints from depostors setting forth thai
National bank has refused to pay deposits.
GENERAL PRESS DIsPArCH.l
WASHINGTON, Oct. 2.-TO-day petition was
filed in the Supreme Court for the District of Columbia
in the Of clifford Arrck against Jay Cooke and
the other members OF the firm force them into invol
untary bankruptcy The petition sets forth that the
firm is indebted to him I'm the amount Of tlO5O, GER
fcates Of deposit bearing five per cent interest. and
charges acts of bankruptcy follows:
First that the 20th OF September, being possessed
OF large amounts of real estate In NewNOIk Ponnsyl
vana, Ohio. and the District of Columbia, they did
make assignment of all their real estate lying else
where than Pennsylvania, TO w. ;. M0rehead mem
Der Of the rm second that on the 18th Of september
they stopped the payment OF their commercial paper
third, that the 18th OF September, being possessed OF
bills, gold silver ana copper and being aware that legal
process had been issued and about to he issued
they concealed and removed said money; fourth, that
the 18th OF September they suspended payment;
aud fifth that the 18th of September, being then
bankrupts they did make payments Of money to certain
parties. to petitioner unknown, the plea that they
special depOsitOrs, order To give them prefer
other depOsOfs and to defeat and delay tho
act of bankruptcy
The petition presented to Judge Humphreys who
granted the usual requiring those concerned TO
appear Friday, Oct TO- and why they should
not be adjudgcd blnkrupts, &c,