, 1874-01-01
Jay COOKE & co.'s AFFAIRS.

! Jhl tNVhE * W. . AfFAIno.
! Il Poor Prospect for CrcdltorS--Th
Northern Pacific 4sailroad tho sol
Origin of the EaiIure 80 1'1ae Ere
Ruined by Trying to Uphold til
! Market for the Railroad f3onds--ls u
| DayiIuai Fortunes Of 1Iso Partners.
Philadelphia {Dcc. 2] Correspondence Gf tie Ne,e 10,
| Tribune.
! Public opinion in financial circles has settle
down rs cents on the dollar as tho figure viii c
the estate Of Jay Cooke j. Co. will probapl
yield its creditors it closed within year, ande
tho provisions OF the Bankrupt law. II lonSe
time can tie taken for itB liquidation. and l
there should ba a rebound from the de
rercentase would be obtaiued. Ab5u
| half ct tie entire assets Of th
| firm are in the obligations of the Nortncr1
| Pacific kailroad, which, # thrown upon tue mar
| ket at once and in body, would scarcely briut
| q nominal piice:: Some small transactions il
| Northern Pacific bonds we're reported few days
! ago to have been mada Oh the stock market 4.
- and 2915, but these are suspected to net hays
been genuine sales. Many OF The large creditors
are opposed to tie immediate sale OF the bonds
| und other obligations Of the road held by them,
Oh tho ground that nearly tho entire amount
would be sacrificed. 1t is suggested by some that
all the assets OF tho finn, with the exception
OF The Northern Pacific securities, should be
converted into cash, and dividend declared
with the proceeds; aad that the Northern Paciic
securities put in the form of bonds (which could
Boon be due, inasmuch a3 the tirE held bonds Us
colatcrals for the mouoyle to the road,
should then be distributed pro rata among tho
c1ed;tors:- In this way creditors who still have
faith IN the future Of the railroad, aud believe it
will recover from its present embur1 assments.
could hold the bonds !; while such as chose could
eel their share Of the bonds, and no doubt ges
q better prico for them than tue Receiver or
Trustees could II the whole amount were thrown
bS them upon the market.
An examination OF the assets OF the bankrupt
firm makes it more than ever evident that tie
Northern Pacific was the weight that sunk them.
Their contract with the Company gavo them u
per cent for placing the loan. They got the
bonds at " aud sold them st par. II they had
succeeded in dispoging of the whole loan before
no PANIC came. they would have made colossal
H. tune from tho transaction. As it was. they
need not have suffered By the want Of confidence
felt by the publ,c IN tue suceess of the enter-
prise, II they Lad confined their connection
with It to an agency business. and had not
supported 1t with their own money md that
of their depositors. But thelr enthusias-
tic 1nlth in the undertaking led them
thom to embark more and more III it, and then
wien ruin threatened It they put still more IN it
to save what they had before invested, and 50 it
went on until Tue unal collapse. 10 eel! tne
bonds, It was necessary to push forward the !
building OF the road and arouse popular cn-
thu siakm about i,s rapid progress. The bond
sales did not yield funds enough to do this, 60
jay Cooke d. 20. advanced their own money first
and tlen the money q other people intrusted
70 their keef!ng and took tho ra.lroad bonus
II security After While the confidence Of the
public IN the road began to abate instead OF III
'.ease Personal friends Of the firm who bad
;een persuaded into Purchasing the bonds
wanted to get r1d OF them, and the firm, to |
setnonstrate their continued faith IN the enter
2rlso. had TO buy them back Other people
threatened TO throw their bonds upon tho |
nar4et, which would assuredly have STOPPED
my 1nrlher saiea at par. some OF these the !
1rta oooShs, anu 70 some OF the holders they |
e ent money, tasns tAe nonos as collatcra!s. 70 !
what extent they purchased bonds canuot 10 |
lscertalned, put among their ASSETS appear over |
:2oo:ooo held ;ss collate1als Tor Loans, Of which
KS ooo went Il to 3 former Official Of the House Of
representatives generally reputed to have given |
great Y assistance N .looDylng tie laud-grant for
ne u 1oao tnroush congress from the Gay
snen "a 1ae urn oeGao 10 nuy oack tue oonds and
make n; 1oans upon them thelr doom WAS certain.
l lhef subsequent e1or1 TO save Themselves was |
'nly to"1ns up s'ream whno the current was
tnem s.eauny ana swiftly mto Tie
"t45[ip9oi paiI.;o;a1[ VI pa.htuttey. :.,,
ronucians co1laectea VIII me L1Sefai ana he
oiiu ino'emenIs asse1t tnaE Tue e1tiaoEdln af5
,aeltiohs mau9 70 p,e'ent tue concern from
,olus tn1ougn tne olWna1s course IN the banS-