The Portland daily press., 1876-03-30
THE REAL ESTATE POOL.
Secretary RObesOn's Transactions
with Jay Cooke.
The Secretary's Explanation.

New YORK, March 29.-The Herald's Wash
ington despatch has the following: The House
subcommittee engaged in Investigating the
real estate pool have been led to look into the
transactions of Jay Cooke & Co., who were
debtors to the pool They found Jay Cooke &
Co. having transactions with Jay Cooke, Nc
Culloch & Co. of London. The private cred
ltors OF the two houses have been embarrassed
in procuring a settlement of their claims, by
the navy department setting up claim to be
preferred creditor. 1t was thought necessary
by the committee to discover what was the ORR
gin of and the reason ior this preference. In
the course of the inquiry, dispatches have come
to light, being obtained from the telegraph
office, by the committee under a subpoena dnces
tecun. These dispatches are held to prove
that when in September 1878, the great panic
began, precpitated by the failure of Jay
Cooke & Co., Mr.. Robson caused to be trans
ferred to the house CT Jay Cooke, McCulloch
& Co.. in London, 81 100000 belonging to the
government. series of dispatches followed
dating from September 16. 1878. to September
2Stb, all showing that Robson arranged with
the Treasury Department to furnish the Navy
Department with 81, 500 900, enabling director
Cutter, by crediting him that amount in the
sub-treasury IL New York, to meet the drafts
of Jay Cooke, McCulloch & Co. in London.
The despatch says that Robson will be called
by the committee to explain the meaning of
these transactions, and whether be really lent
the governments money to carry private
banking firm through panic, firm which in
spite of this help went down q few months
later. 1t is understood Robson claims he got
through the whole business without losing any
money for the government, that he obtained
securities to the full amount of the debt of the
firm to the navy department, and that he now
holds such of these securities as are not real
lied.
In letter to the committee dated March 10,
1876 Robson saws he has received claims
proven by Jay Cooke, McCulloch & Co. against
Jay Cooke s. Co, Of this country, amounting to
$1,79955O He holds these claims as collateral
to secure the balance of the foreign account of
the navy department kept by Jay Cooke, Nc
Culloch & Co. of London, as fiscal agents of
the navy department abroad to meet the drafts
of payments of our foreign fleets. The balance
now held there amounts to about 100000. He
says he also holds the following additional COL
lateral securities for Indebtedness of Jay
Cooke, McCulloch & Co.
First decree in the Circuit court of the
United States for the eastern district of Penn
sylvania, amounting with interest, to $7S9, 2OS,
which decree is affirmed by the decision of the
Supreme court of the United States, and is
entitled to priority over all other claims Of all
creditors of the bankrupt aprties, of Jay
Cooke, McCulloch & Co. Upon this there
have been paid $273,2O1 leaving balance of
$575, 0O7.
Second the negotiable warehouse receipts for
about II 900 tons English railroad iron in bond
ed warehouse in New York, New Orleans, Buff
falo and Duluth, with one lot Of about 1850
tons in Canada.
Third, an original bond of the firm for
$4,000 with security approved accarding to
law.
Fourth, four hundred $1,000 bonds of the
Indiana Central and Illinois Central Railroad
Com panies
Fifth, one Hundred and forty. five $1,000
bonds of the st. Joseph and Danver Railroad
Company.
Sixth, an assignment of the private estate of
Hugh McCulloch in this country, valued at
$150,000.
Secretary Robson says, 81 have never been
Invested of any collateral held by me as securi-
ty for said original indebtedness by any person
or any judicial tribunal. But some of the COL
lateral other than these above mentioned, be-
ing notes and credit, have been paid Off and
the money received by the government and
credited on account; and some railroad iron
other than that above mentioned has been sold
by the agent of the firm with the assent Of the
government, the proceeds being received by the
government and credited on account"
The firm of Jay Cooke McCulloch & Co., are
no longer fiscal agents of the Navy Depart
ment, but have gone into liquidation under the
English law on account OF the bankruptcy of
some Of their partners in this country, and
their Indebtedness, which is in progress of set
Element, has been delayed only by the compli-
cation of their accounts with those Of the bank
rupt firm of Jay Cook & Co. Mr. Robson
says he will furnish further details when he re-
ceives additional data from London.
WASHINGTON, Mar. 29-The Secretary of
the Navy says the statement that be transmit
ted any money to the house of Jay Cooke, Nc
Culloch & Co., in September, 1873, is not true.
The money was transmitted to the Payinaster
General of the navy, then in London, to pro-
tect lin the event Of Jay Cooke, McCulloch &
Co., stopping the payment of navy drafts) the
credit of the navy. He says the money was
deposited in the Bank of England and with j.
s. Morgan, and that no advances were made
to Jay Cooke, McCulloch & Co., until the lat
ter part of October, after the house had shown
its intention and ability to continue its regular
payments of the navy drafts, and after ample
security had been given to protect the govern
ment He further says the investigating COM
mittee can have all the kilograms and transla-
tons of such as may be in cipher on ask ng the
department for them.