New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-03-30

United States Government in n new attitude-that
of lender Of public funds to sustain tue cren, o,
private banking house, while receiving as security
property the title OF the borrower In part OF WHICH
was questionable and tie relations OF the borrower 20
all OF which Of such nature that leanng rtivai
banking house did not consider II ood security. i,s
under order of the court by atdayis ana deposio
The case that OF Lucu. Hendrck weetien and other
Dutch holders of the 81 mortgage bonds Of the ST. Paul
and Pacific Railroad COMPANY agains that cornmraio,ll
S5 600 OF bonds which sold for the stimulated
purpose Of building the extension lines OF the 81 PAU
property OF these mes william G. Mo0rhead was the
truseec under the MORTGAGE, and was also cohtineo,
the bonds thus came into his hands as trustee;
and expended hy him az contractor Moofn Ca
partner in the NewYork house OF Jay Cooke 20
having interest Of about 20 cent and rartrer III is
Londo house Of jay Cooke McCuoch CO: IN %m nor
after the sale OF the S15o0O000 OF bonds me money
which then remained hand were turned over ny
They in turn turned them over to jay Cooge ,h
& Co. These rails were I'm Ncwf York, Bunao' Duinln
bought with their money for specific purpose , o
part Of the proceeds Of thet bonds was nse IN, or
est and which not covered by their bonds
and that lay Cooke m ihers Sceouss uoo TS
head being partner his knowledge is IN law the know-
edge of the firm In the of the suit brought by me
Ondhoders last November II became necessary 70 trace
this iron aud prOvde by injunction against us beng
sold otherwise placed beyond their reach; FOR
onirng Fpsncs O. French of fhe firms of jaw Cooke &
Co. and jay Cooke, MeCulloeh Il Co. and Nathan
Chandler of the firm Of John Munro Co. OF Paris ara
New-YOrk to make affidavit in answer 10 questions pun
bv Messrs. Evarts, southmayd Choate, attorneys Tor
In the adavits made in consequence Of this order an
swers to certain important Questions were te5eu o q"
confidence. further order was therefore granted on
Feb TO- fcqTrG e W% d summit to nn
From the aidavits and the dispositions the following
At the time of the panic in September last Jay Cooke
Il Co. the First Division Germany, ana the Nor'nrrn
sctarT of tie SaVv had arge balance in the hands
Of jaw Cooke. McCuloch q Co., about Sl,Ooo,Ooo IN
n f for tns T Tag%sn' Mr. Mscuoch
in NewYork soon after, and made 81, stIeh h,,as
from going down. and also TO prevent Secretary
Robeson from removing his account from them, as MI
to Continue tins account for two reasonsnrst, The
balance was useful to them ana sGco fa credit Of
the house would have been destroyed nj once all over me
IRON bad been deposited with Drexel Morgan & Co.. and
an effort had been made to effect loan on
Of The orininn of two LAWYERS that under
a recent decision Of Judge Blatehford the properly
negotiations having failed the warehouse r. c'nls IeP'T
senng the iron were deposited by prGxc, NOTED q
as trustees FOR tho person or persons who should have
title to them. They afterwaTd delivered 20 Gcorse
Of the Navy After several interviews between McCnllocn
and Secretary Robeon the latter consented to reia ne
Cuoch Co.. and received large number OF securlies
among which about 1000 tons OF iron, paIi Of
which Buffalo, part IN Duluth, ana Plft IN New
Orleans The iron in NcwYOrk retained Tor the mr.
nose Of efTecting loan OF 100000 sterling, when
NcCulloch knew would be needed by his nrm IN
November. This fui Their advance WAS obtained rom
Secretary RoheSGn and the documents representing re
iron were handed Mr. Gutter on secrct2fy Gbe-
sons order The terms OF the deposit with TIE Secretary
OF the Navy were not known 90 Mr. French, bnt Tor
NAL document was drawn up Nv Mr.. RohcsoD which me
witness believed secured the continuance OF me
amount then deposited and TO he deposited with INC
firm for the Navy Department Since ths IRON, CONSIST
ing Of new rails and old has been IN the possession ."
the Government, part OF il has been sold and the
money received by the Secretary of the Navy or on ms
account Among other lots one OF old lis, Which
were sold at the price % Junk 800 - -
Mr. French said that the claims which Mr. Robeson
has unon the iron thus scattered through the 'inry
las been announced the Treasury Department, and
that the people in whose the iron stands einot
move rail without orders from Washington since the
81 600 900 balance was cft In the hands OF jay Cooke
McCuoch & Co, and the 9lG0000 has been RENTED 10
them not more than about 22000OO have been PAID out
by that firm on account of naval drafts.
The following correspondence shows the exercise OF
the right ownership in the rails by Secretary Robe
son: - -. .-.......,. ~. n, 1919
lIessTs. JOWN MUSGO CO., Nelr- YORK.
GTNTlFNrS: Please deliver iron rails held Tor account Is
advised by you Pay Director George r. Cut e New orA
GEORGE NJ robson.