Helena weekly herald., 1874-05-21
THE JAY COOKE BANKRUPTCY
CASE.

CASE.
\ correspondent writing from Philadelphia
under date of May 7, contributes to the New
York Tribune some interesting matters re-
lating to the Jay Cooke BANKRUPTCY case. A
committee of creditors representing $500, 900
recently met the Trustee, Edwin NJ. Lewis,
and deliberated upon the long vexed question
as to whether dividend should be made at
the present time, or whether arrangements
already entered upon with creditors and
debtors of the firm, as well as with those de-
sirous Of purchasing portions of the assets,
should be consummated. The committee
also discussed the advisability of compromis-
ing several claims which the bankrupt estate
had against individuals, who in turn had
''set-offs." They did not decide whether q
five per cent. dividend in cash would be made
at once, for, although the most strenuous ef-
forts have been made to get in all the proofs
of debt, they have not all been received, nor
has the verification by the books of account
of those which have been received been COM
pleted.
Mr.. Lewis is still waiting to have returns
of claims by the Government Departments at
Washington, only one having thus far been
received-thst of the Post Office Department
for $4,000. lie has almost enough on
hand to make five per cent. dividend in
cash, which requires some $4OO, 1000. A sale
of 1900 tons of pig iron at Morristown, pur-
chased by Jay Cooke from J. Barlow Moor
head for the purpose of being made up into
rails for the Northern Pacific Railroad Com
pany, is in process of accomplishment, and
this will bring 800, 900 additional, more than
sufficient to make up u five per cent. dividend.
The Northern Pacific bonds are now selling
privately at about 81 or 40 cents on the dol
lar. This estate has about sc, ,OOO, 600 of these.
For some time past there have been negotia-
tons going on between some of the larger
creditors in New York, Philadelphia and
Washington, and the trustee and his COM
mittcc, looking to dividend of the assets in
kind with certain arbitrary estimates which
have been set upon the stocks and bonds.
That is to say, the proposition. or rather sug-
gcstion, for it has assumed no more definite
form than that of q mere suggcstion) is
that those creditors who choose to do so
should settle their claims by taking, say, 10
per cent. in cash, 40 per cent. in Northern
Pacific bonds at 20 cents on dollar, 30 per
cent. in Lake Superior bonds, and the re-
maindcr in other bonds ut IN assumed value.
This is but an initiative proposition, but it
shows how the current of feeling runs.
The committee, it is understood, will do
nothing that would not manifestly be to the
advantage of all the creditors, especially
those who elect not to concur in such an ar
arrangement, if it should be made. Other
propositions looking to partial disentangle-
ment of the affairs of this bankrupt house
are made, of which the following is type:
A large creditor, having q claim of about
$3.50, 600, suggests that he be allowed to take
lands on the Red river in lieu his debt. These
lands arc to bc taken under an agreement
that if they are plowed once, 25 per cent. of
their value will be allowed the purchaser.
This provision is, of course, inserted to en-
courage the cultivation Of land now going to
waste, and an increase of population, with
necessary increase of business to the railroad.
1t is thought that these suggestions will
assume definite shape before long, and that
the creditors of Jay Cooke s. Go. will have
to act upon.
As to some of the more prominent items of
assets, Mr. Lewis, the Trustee, is still ''nurs-
ing" them, prcfcrring rather to hold than to
sell at great sacrifice. This is tie case with
the magnificent country seat of the senior
member of the firm at CheltOn Hills, outside
of Philadelphia, valued at $500, 900. Several
prominent gentlemen, among whom were
leading hotel proprietors here, short time
ago thought seriously of purchasing Ogontz,
as the seat is called, and making it into
country summer residence for wealthy men
who could take their families there and re-
side on the White Sulphur Spring system, of
q main dwelling surrounded by cottages
adapted to the tastes and requirements of
each. This scheme is still being considered
by the capitalists referred to, and if consum-
mated would be very advantageous to the es-
tate, as this large mansion and the grounds
it could hardly find purchaser,
except among the wcalthicst men in the coun-
trv. Rumors have been current that Mr..
Lewis was about to sell the costly furniture
which has rcmaina) in the mansion ever since
Ihe failure This, however, is not conten-
plated, as it is thought that the property
would be much more valuable in furnished
state.
T.. c.nln 4hn cnnior ,,a ffnnr 10 l;r;,,. T.,