Evening star. [volume] (Washington, D.C.) 1854-1972, 1874-09-17
,JaY Cooke & 90.

EXAMINATION OF THE HEAD or TIE FIRM
BRFoRE THE REGISTER IN BASRaUPFCY-
TIE PROFITS or TIE BUSINESS.
y LOON yesterday the eNamin alton of Mr..
Jay Cooke was continued before Jose % NJ >
sou, esq, the register in TIE bankruptcy oi
NJ ssrs Jay Cooke * Co., in relation 70 u
transactions OF the firm prior to the inssl-
vJnCy. Mr.. Cooke stated that the exact amount
or DEPOSIT belonging 70 Dir. Moorhead and him
self a. the time the partnership was fiTst effect
ei was $3.50 OtO. Mr.. MOCrhest : had lie thou Zhg.
further amounts In certificates oI deposit;
had MT. Fahnestock and etGeT partners. X.
would ascertain che precise amount. and re.orf
them 81 the next examination. The am1Iu: %
real estate. bonds, &c, owned by The different
members OF the firm cOUld be found ~ The
sHCTn statements already prepared by them.
These wCGid furnish full and true answers -
all inquiries. His own state lCcDt also contains
what disposition h had made OF the Teal estata
BONDS, &c, be owned, 70 the value o. over
S2.t00,CO0, in January, 1911. It would furshe-
show what prOpoTJioH OF them was disposed 0T
All the haJhIies OF the firm were c0ntract53
by the nrm az firm, ia the usual mode o.
banking business, by moneys received on de-
pssIts. TIE bulk CT the assets OF tha dTm were
the proceeds of tde regular investments by tIe
II IN beTs or their profits III the hu~inss-.
Ninety five per cent of the assets would FeDre-
sent what he meant when he said bulk" Ad-
VauceDents were made TO ana money received
from the Northern p Pacihc Railroad on drafts ~
10 the day OF the suspension. The members OF
the firm were worth sOmewbat more IN Septsm-
beT, 1873, than in January, 1874. On the 18Th
day OF September, 1873, tue assets were seYera
millions In excess Of the firms liabilities, ac-
cUTding TO the estimates made at that date. The
net profits for the year of 1SIl in the PhIalei-
phia Office WAS S5OO, 600, in the New York Otiss
S5s3 Geo. In the yesr 1872 another dividend 81
SEQ, 900 was made in the Philadelphia office
No division OF profits was made in 1873, a. il
was customary TO wait until the first OF the next
year before it was declared. There WAS no divl-
deDd in the New York house IL ISs2 the profits
being lett to lay in. On the 18th day OF Septe IN
ber, 1873, the profits and loss of the firm IN
divided, being part OF the proceeds OF hat gear
and the surplus OF previous years, was about
Al 100000. This remained after all the divi-
denis had been declared. Ia the transaction
OF everyday business all items OF profit
were put on the bOOks-the results Onlv.
AMI not always the full Transaction. Az
net profit in lSIl, Si0S5 COO divided,
leaving a large surplus fOT contingencies.
No one could tell exactly such "A business iS
the firm carried on What the un tiVidei profits
amounted 10. During the three YEARS. business
they summed up about S2,e35, 600. No one could
tell the amount Of business character of
profits in 1913 until the concern WOUni ND. The
firm did not lose anything in tier business.
TIE cause Of the failure was biying too tna0y
eggs In the basket" Loans and advances 70 the
Northern Pacific railroad brought about the
crisis. The hSm never purchased irop or rolling
stock, or anything else for the Northern Pac iit
railroad. They were only their financial agent
10 put their bonds In the market. know nDth-
irg about Mr. MOOrhead buEiug any iron. O1E
schedule Of assets shows exactly WI ere and ilOW
We have invested the amount Of over eight nil
lions Of dollars which We owed to or cTeditOrs.
This mOrey Came into our hands in the regular
course OF business, and had been invested in
loans, As mentioned in our schedule. We Sus-
tanned no losses OF any account, etc -pt from the
al FanGement to the Northern Pacific railroad.
There were Few losses charged 10 profit anC
loss, but they were trlhing. lItiI Pssss.