Evening star. [volume] (Washington, D.C.) 1854-1972, 1874-07-30
Case.

EXAMINATION OF EX-GOVERNOR COOKE.
The examination into the Jay Cooke bank
Iuptcy case was resumed in Philadelphia on
Tuesday before Register Mason. The Record
prints the examination of Jay Cooke, which
Cooke, the head of the Washington house, was
then called. He testified as follows: He had no
reason to anticipate the SUSPENSION of the firm
before that event took place; on the day of the
suspension he believed they had on hand at the
Washington house the usual amount of cash;
the relations existing between the First Ma
nonal Bank OF Washington and the firm OF Jay
Cooke IL Co. he explained in this wise: The
individual members of the firm were the prin-
cipal owners of the bank, which institution sus-
pended payment on the same day Jay Cooke s.
Co. did; the bank was not indebted to the firm,
but the firm owed the bank about 100000,
which amount was contracted on a current &C
count; portion of it grew out OF bonds and
other transactions.
Witness was then asked to refer to the ledger
OF the Washington house and turn to the ac-
count OF this bank. He did so. and continued.
The bank held no security tor the indebted
Dess of the firm; we held Sl01, 900 security in
Northern Pacific railroad bonds, and that u
all; the bonds were given at the time OF the dis
count OF certain notes; TO his knowledge the
6Tm did not turn over any other securities,
bonds, etc, three months prior to the suspen-
sion; at the time the bank suspended he was in
debted to it personally in the sum of $40 000 the
affairs Of the bank are beng settled up by the
controller of the currency, through q receiver,
and as yet that official has made no final adu
ment OF the firms account with the bank; at the
time of suspension the Potomac Ferry com
pany bad overdrawn their account; tue firm
were interested in the bonds OF the company,
and some of the firm were interested in the
stock; he was consulted at times as to the
affairs of the ferry company.
At the request of counsel, Gov. Cooke referred
to several accounts in the ledger which were
shown TO have been Overdrawn at the time of
suspension, amorg others that of President
Grant, who had drawn out 81 506.S7 more than
he had deposited. He had confidence in Jay
Cookies judgment when lie recommended the
negotiations in the Northern Pacific bonds.
During the months of April and May, 1873, the
sales of all kinds of bonds were reduced on &C
count OF the stringent condition of monetary
affairs. The property owned in Washington
was owned by the firm indirectly, as already
stated The trustee has realized fair price on
everything he has sold. When he received the
telegram announcing the suspension of the
Philadelphia house he asked for advice and r.
ceived distractions to suspend payment. In the
early part OF September, 1873, money was very
as the house had passed through many such
tight places he supposed that all was safe; that
provision had been made for any contingency.
This provision was made by calling in loane
and by personal contributions. Messrs. Jay
Cooke, Moorehead and Fahnes ok con-
trlbuted. He vas unable at the time to do SO.
MIR. FahnestOck occasionally and incidentally
expressed doubts as to the prOpriety of making
such advances to the North Pacific company:
on the day the crisis took place he was at the
Governors office, and was not expecting any
thing OF the kind; he understood in a general
way that the New York house was being more
generally drawn upon by the Philadelphia house
than 1t desired; since 1862 the firm has had
transactions with the United States Treasury
department; the firm had negotiated about two
thousand millions of dollars for them; he was
president of the First National Bank, and at
the time of its failure it was a debtor of the
Treasury department in about Sl75, 900, which
grew out OF continuous transactions; the sub
scription agency of the firm was directly con-
nected with the Treasury department, and the
house by its clearaDces was indirectly connect
ed. AT this point the examination was conclu-
ded for the day. This witness will also Do ex-
aminei in Sertember,