New-York tribune., 1874-01-14
JAY COOKE BANKRUPTCY.
IMPORTANT STATEMENTS CONCERNING THE
FIRM.


sErr-LErrERs FROM THE OTHER PARTNERS
THE RECEIVERS REPORT
frRox An OCCASIONAL CORRESPONDENT OF TIE rRrBUNRl
PHuADElPHIA, Jan 1S.-On the 26th of last Novcm-
ber. judge Cadwaader of the L. $ District Court
made an order in the Jay Cooke Bankruptcy case,
beginning
Certain creditors asking the appointment OF receiver
and the bankrupts asserting thereto. It Is consdereu
that by OF the delay OF the original peutons
prosecute their applications, ana py reason
OF the intervening writing OF oct 1873 he jay COOKE
plan Of settlement appointing g. A. Rollins truS'oei'
such appointment is proper and necessary therefore
Edwin NJ. Lewis Of the City Of Philadepha president
OF the Farmers and Mechanics National Bankl Is
appointed receiver of the estate of the oankrupts
He IA TO account weekly to the Register for
all moneys received, until the assignee IL ap-
pointed II the bankrupts have at any time
made any conveyance transfer payment or appropfa-
ton otherwise than in the regular OF business.
for valuable consideration or IN family expenses the
rccelver WILL through the Register, report the same
Judge Cadwalader, in an order, made recently re-
fsrs "a follows to the final clause quoted above from
the order appointing Receiver:
This part Of the disclosure Of bankrupt IA not re-
quired IN the original schedules mentioned in the thr-
teenh aud fortyecond sections Of the Bankrupt law
and Ia not ordinarily made until a later stage OF the
proceedings In this case however there had been un-
usual delay the early proceedings. This reason and
another rendered necessary the extraordinary
measure of appointing receiver, and caused also the
insertion in his appointment OF the above provision to
answer an ordinary purpose Ihe receivers
first report under 1t is composed OF unsworn statements
IN OF letters from Of the bankrupts the
receiver adding that the Of the other one had
been delivered and then withdrawn and a second an
swer made and in turn withdrawn. aud the receiver
would endeavor to procure one ana SEND IL without
delay This gentleman (Pnt Cooke might have been
allowed make any necessary and proper amendation
and supplementary statements, but he ought not to
have been permitted to withdraw any paper which mad
been exhibited. Whatever was Withdrawn will there
fore DO produced whenever called for. An unsworn
satcnen, in the form of letter. dated long ago
Dec. 15 Is this afternoon reported by the receiver
The Judge then refers these eight statements or
letters the creditors and assignee to be appointed
He also says, in answer to the suggestion OF the
Register. that the time covered by these letters
should have extended back to such period anterior
TO membership in the firm of Jay Cooke d Co. as
would completely cover every reasonable question
of dlmInuti0n of capital or diminution of means
otherwise available.
In the unlimited form in which the question was asked
very simple kind which every debtor should In
OF misfortune be glad of having an opportunity to
answer in the usual unqualified manner. Unless Tor
some special reason which DO not anticipate the an
swers ought in the present case, to be in this form
The Judge then makes further criticisms as to the
character of these answers and directs the register
To make further inquiries The first of the State
ments OF letters" Judge Cadwalader calls them,
is that Jay Cooke himself and gives the following
important history of his firm and its affairs:
1 entered into copartnership with WIN. q. Moorhead
tho Of January 1851 under the firm OF Jay Cooke
& Co. / considered myself worth at the time about
s5OO at lowest depressed prices which all know
were then prevalent j believe Mr.. M0orhead to have
been worth at that time fully double that sum, and
probably nearer half million Neither OF us had
very barge amount In actual cash, but we had Lands,
bonds stock which fairly represented these values
months after opening our banking house, and up
10 that tune doing but moderate, snug ousness' we
became ono OF the agents of the OF Pennsylvania
for the negotiation of their sSOo0OOO loan We had the
satisfaction of saving the State at least half million
dollars that negotiation aud Of raising, by that
means the credit of the General Government also,
rs both the State and Government finances at
that time very low ebb This success gave us
avery prominent position. all the payments to the
State made through us. The operation also at
taced of the Secretary OF the Treasury Of
the United States and appointed sole agents IN
Phadep pha under the law for the negotiation OF the
We had previously negotiated for the
Government several smaller amounts without commis
sion or agency. III common with other citizens. We
were so these efforts that the Government
placed hands finally the great $50 loan amount
ing to over s5QO0OOOOO which negotiated N very
brief period. Other loans also negotiated by US
from time time the largest of which that OF the
70 loan $30 100000 and lsttery $90O0O00O of the new
funded per loan, together with the participation
40 the recent Syndicate which has negotiated about
&O00OO,OoO
During period the collateral business through
the prestige had gained by our Governmental con-
pections had brought immense and profitable
business think right, however. 10 state that the
mere commissions and emOuments received from the
Ooyernrent from TO time have been, think, fully
returned to various forms Of taxation upon
the said profits upon those greater profits which &C
crued business so that We feel that we
can Justly say that connection with the Govern
mon except from the collateral Dement'S, mas been OF
very little advantage pecuniariy.
Shortly after the commencement OF the war we estab-
lsbed branch in Washington. and Jan. J. 1866.
tablished q branch in New-York. On jan l. 1871 we
took an interest in a in London The present firm
was formed J. 1871, with an entirely new adjust
men of partners and interests Our profits up TO Jan
l. 1863 which divided among the partners, had
been large In one year 1 recolect my dividend was
nearly sOO09 believe during year were they less
than ss5O0O on the average during that
perod At that time / considered myself
worth over s2OOOOOo beyond all possible contn-
gencies aud owed nothing but small current
housekeeping bills which always paid on presena-
ton During the period have spoken OF there was no
fixed capital in the firm beyond the undivided Proht ana
Ioss account but when the firm needed funds beyond
that at auy time for any special purpose the individual
members Of the ready TO furnish their portion
of or securities for any such purpose and the firm
at all times had assets than sufficient to cover It's
liabilities It's liabilities merely such as necesss-
rily accrued in the course OF banking business.
Believing myself worth at that time, above all pos
sibe liabilities q 100000. did give, about the st
OF January 1863 my eldest Jay Cooke. jr short
time prior his marriage Che was not then member OF
the arm but became on the lst of January, ls7l),
In