, 1875-04-18
AN OLD TRANSACTION
urNx1S JAZZ COOKE, M'crLocH CO.. Azp' TEE

TREASURY DEPARTMENT..
Special IsxEaseh ks TIE CAteaoo III tune
WASHINGTON. D. c., April 17--Ti 10 fact that
some Of the Dutch bondholdets NJ o about to
tring suit for 16, 600 tons OF iron IT 1s, pledged
BY Moorhead to J&v, Cooke i Co., I'd uow held
By the Secretary Of the Nary, ca uses certain
newspapers t. revive the old story t: at the Secre
.uyof the Navy has turned Ills De- ,astment into
Hpawn-b1okers shop. and loaned United States
fumes to Jay Cooke l. Company. Il ding old iron
Is security. Officers Of the Savy y apartment in
DORIS the following statement as -. ltue account
af tbs connection Of that DEPART nent with the
matter. When the ranic came. Jay Cooke l.
Company. needing money urge ntly to bridge
them ever the impending crash. obtained loan
from the London house OF IN Cooke ucCul-
ioch i Company, giving: as 81 .curaty the ware
house receiIts for the ircn rals belonging
to the Peabina Branch Of the { it. Paul l. Pacific
hallway. The day after the ir failure, McCul-
lcch, OF tho London house, n rived in this cnun-
Try. Ee was unaware OF tie disaster thnt Lad
befa'len hi. partners' firm ont il he landed jay
Cooke, Nccuilo=h l. Co., of London, were the
financial ageuts OF the Cover .ameut- The Navy
Department had
DEros1rED WITH THE ST. 5ooo ooo
IN gold for the use Of the feet in European
waters, Tie failure Of Js Cooke i Co., aud
the JUNIORS ,hat prevailed i1 regard to the shaky
condition OF Jay Cooke, II .cCnlloch d Co.. Of
London, alarmed the Nary Department.
and ths1 determined to uithdrsv their
deposit, Heating OF ! lr. hcC,Ilocl's ar
1ival4 Secretary Robesop hastened to consult
him IN The matter. in ordel to learn what the
chances might be. Mr. II cCu1locn said that the
firm Was in no danger fros any ordinary run up
On it. hut, should such l. srge withdrawal be at
ternted 4: that time. it would lie forced into
bar kruPrcg, and, tn that svent, ~ the Depart
nent would not TO p'acet 10 the position OF 4
prefas1ed creditor, tho entire deposit woald
probably Ee lost
ON THE OF HER HAED,
Mr. McCulloch offered 10 place 10 Secretary
1ol ca ms haads sucb secur1,y for The entire
amcuns ~ wcn'd be q mply satisfactory. Ths
8scre:a1yw&.s Lei l. to adopt tho OF l.. co1rse
that Wise judgment left open to o,tn, and he
name3- Dir. McCalic ch placed i'll his hands m
amount ct securities more than covering the
drpoAif, among Other the warehouse receipts
xE Ill The itd rails belonging to
,tb4se in Sew Yo,k- short time subsequently
Secretary nobcsou ad oecshicn to send ISU. 800
- the Naval faymas ter in London. sud he &C
conpaniad tue remit :aneo with q note leaving n
the discretion OF tht Il officer nlether be should
det osat it with JAY CooLe, McCuAloch d Co.,
Who
coSrHuED To BE TIE F1scAL AGENTS
Of tbs Governme:1 t, or elsewhere. Tie Pay-
master made inqui les audacano to the conclo-
ssoa that 10 ioss :outd result from deposistng
k40 1GuAAkAuGH ALL tA3 NVOAIs 0A|S0AA1NA ~
Co., but, to make sure. he demanded from them
aad received fuil security in The remainder Of
ths warehouse rec. ivts for the iron rails
that wHs In store In this city. Later
Alr. McCul och ook NON partner, and organ
ized 4 new 6ro1, and ths old firm OF Iav Co Ike
hcCul!och D. Co. went in;o liquidation
They hlre row paid OF everything except tue
Nary Departme ut claim, ard that has been partly
reimbursed. ecretsrv Ropeson STILL holds the
Securities, war hoose receipts and nil x!ich, II
eoh to-day wt .uid more than realize ths reuaAin-
der,