The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-08-03
robson, THE EMBEZZLER.
MoRALLYAS WELLAs TECHNICALLY
GUILTY OF THEFT.

b1uu.OuD 1CDr-Mr. Giover'e Sprech.
WAsnINoToN Aug. 2.-The following Il
that portion Of Mr. Glovers speech Yesterday on
Robeson's loan q the peoples money to Jay |
Cooke, hoCulloch Co., which contains facts
not dcv logeu in the report Of the committee:
IL 1. useless for the Secretary to deny that he
was guilty Of. To saw The least, gross negligence.
Ho SHOULD have demanded security In Scptgm-
Der for tito whole sum tncn admitted ~ Nc
Culloch to be due. as tile selyency u the Lon
don house deDcuded On Jav Cooke \ Co.'S
assets. and should have thfeateneb 10 draw AL
for which security was not promptly fur |
nished; and should. II nece slry' rave pu,
this throat In execution. Tne baro 81 |
that the house VS. so we 'hI, WY
withdrawal OF tho United states recount
would hurt It's credit end rick H. bankruptcy, |
should nave moved hiri To- thi' course, Nhu
having followed it, he could have Justly cialmeu
Goveinment. Kn. wing the weakness OF the
housc. he should not have trusted II with an
o,her d"ler on my TERM, es' a ~ "a" Se shmud
have taken care to inform himself Of the nature
of and title to ths security that lac accepted;
which would have saved MIN ana tue Gov
ernment from becoming uncou cicusly, IA lie
claims, parties t. tie fraud on the DUTCH bond.
holders OF the 81. Paul aud L cinc Railroad
by Morohead ana his pQftners In the New YORK
aud London houses. AZ " 10, ne stghds H. the
position Of aiding these persons 10 dcfraud tho
Innocent victims. At all events, 1t was needless
for HIM TO advance JaT Cooke. McCuloch Co.
any more money, even to meet dtafts, and
equally NEEDLESS TO keen bradford there Tor any
such purpose. All he needed to do was ~ in
ttruoi jay Cooke, McCudo & Co. to continue
accepting eraf.s ana making them paYable at
Williams. Deacon y Co.'S, ana to place VIII
uams, Deacon Go. In funds to meet such
DRIFTS. lie could then nave NJ once arranged
with Bafinri or somc other fclisble house to
meet new draits, ami have instructed paymds-
tiers to draw on 6 GIN.
WHAT RoBEsoN MIGHT HAVE DOM.
Had he threatened JAY Cooke, licCulloch
Co. with wilhGrawal II would have forced them
ethor to iutntsn security, which by his own
showing they could have dors from thor assets
IN this country. available asset, or u inform,
him that they had not received the million OF
dollars which brought them In deut to tho Gov
bruinent. which ne states that he did not loarn
I'LL afterward. knowledge Of TINS ct, II tact II
be, would have eli ,uled MIN t. hold Jay Cooke
4 Co.. who were the last eudorsen on tho Treas
nry draft, and who hud received the money;
and to prompt attach enough II their ample
Estate to secure the Government; Whether jay
This million, there was no occasion for le .vlns
unsecured any part OF It, and still less for adding
Again, II be had the 10th. GOTH, or sist Of
beptembeT. 1873, exercised due diligence, he
would nave NEUTRALITY-SUSPICIOUS. the money
to nave really been trtnsmtt, don whom the
bill Of exchange was drawn, Ind N on any house
by telegraph not TO pay the money to jay Cooke,
McCullOch Co., bit 10 pay II to bradford, or
hold 1t subject to orders. his any respectable
house would hive done. II not Otherwise, on It's
promising TO indemnify them II necessary. Toe
position assumed by Jay Cooke, McCulloch
Co, that N the account was not taken from
them they could set through sa'ely, indicates
either that the, were anxious to pieyent this
CHARGED themselves With 1t when they could
have justly refused 10 co, aud nave referred the
collected the draft. " they took tho latter
course II was plaiuly for purpose. and that
purpose subsequent events reveal.
Iaymaster General Bradtord's testimony
shows that the transactions OF september were
account furnished by the treasury confirms
this: II will De remembered that Just after Jay
from Jay Cooke, McCulloch & Co. giving direc-
lions to draw on the latter Tor whatever was
American h house was INDEBTED " TO the LAneoe
one 70 the extent Of over two and half mil
borrowed million flom them on Moorho d
iron, dawn 100000 out add ional, and deiault-
ed TO them for a mniion besides, this offer Is, TO
say the least, suspicious. lHken in connection
with the strenuous efforts OF Jay Cooke Co. to
sfect a composition vita their credi ors, and
thus to avoid any pubhrity OF their AFFAIRS, aud
With the haste manifested oy jay Cooke.
would seem tnat the object OF telegraph ny
Bradford million, Sept "a, was 10 enable Jay
Cooke " Co, to fun the prosrimme foroshadow-
paciiy infiuentii ii creditors and to complete the
private composition with the rest
SUSPICIOUS CONDOLENCES OF DATE.
This view Is strengthened by tho fact that
aunng September and october II. afford paid
po drafts. But the day after tue money left
it-petitions ~ bankruptcy were filed against
Jay Cooke Co, which stopped their attempts
70 do Insness, aud made this programme use
In September and OCTOBER, this would have
amounted to relieving the London house Of the
nect ssity for doing SO, which would have been a
virtual loan to the house: that this WAS not
done shows that tais vas not the object Of the
Another feature OF this September transaction
Is noteworthy lhe PROBABILITY OF panic was
known and discussed in the pJbiic press some
time prior to its occurrence. II hls been strong
ly intlmaled in tue press that public money was
used In specula ions on private account during
the panic mo time At which the money was
telegraphed to New YorR-Se ptember 2+-was
thar of greatest depression IN prices, ana pur
chases of stocks United states b1nas, Sc
could be then made at very low figures Tor cash.
100000 Of the amo mt credited TO Cutter Sep.
TENDER "a, by the Assistant Treasurer at New
York remained there for ten days This gave
At material profit, especially In view OF tho
action OF the Treasury Department, which at
nrst fatty refused to make a ten porary over
Issue Of greenbacks as a stay for the general
alarm, ana after prices h ID thus been for ed to
the lowest atteinsbIe point quietly made this
over ISSUE and thus aded them to advance. BY
the use OF half million at such time for ten
DAYS rye profits could he realized, and at the
way, no one being the wiser.
The October TRANSACTION seems to have been
an aitertnought. According to Bradfotd's ties.
timOny, the house, out 81 the $oJO0JO admitted
by McCIl!Ocn to De due after toe failure, went
on ana paid DRIFTS 70 the extent Of <sOtO0 sfter
which they found themselves unable to con-
tinue. lt has been animated TO me from
another source that at this juncture McCulioch
represented 10 RobesOu taat II the house was
not aioed II must Lat ana that he would be held
by the country responsible for the loss Of SON.
100 bradford teslnes repeatedly that the object
was To save This bal4nce by hidiug-really by
sNlnR tne mouse .hu tnls testimony anu ac-
tiCn ntfest STRANGELY with tue secretary )
declaration IN . ne oid not know that the house
was IN ihlling circumstances. he nrst action
In OctOhet, 80 r as known, was the uesp 4tch
from RotesOn DC II, authorizing Bradford TO
"protect ACKNOWLEDGEMENTS dTaft-;' aud IN THIS
connection 10 must he remembered that Brad
FORD, according 70 the COPY Of his account cur
rent furnished by the treasury, did not begin
TO take up aNudstrrs' dratts III Nov. 3, n week
after he had y Id Jay C1uke, McCullucn a. Co,
the second anu last part Of the saDNO. OCT. ~
he received from Cut er the S5JOOD that had
Btaid ~ New York ten days, ana the same day
paid over 10000 Of II 10 Jay Cooke, MCCuluc n
Co., Keeping the million received SOFT. 25 TIL
Nov. ], when no handed over half OF this also 10
lhem.
THE THIRD ACCOMMODATION"
This does not seem TO have been enough TO
pull tho house through, for, Nov. IA. he accom-
mOdated them with $20O0OJ more. NDtewor, ny
features Of Luis transaction are that securiiy
was prufess6Uy taken. that most OF this secur-
lty was equtaoy worthless "a such, that most OF
the money was not used for naval PURPOSES ana
That II was rep i'd not Oy disbursement on navy
account. but Ike any other loan by refunds Of
The Gosh and sales OF securities. the statement
that the brm's going INTO liquidation has pre-
vented earlier repay ment shows pl anly that the
money waa used for business and not for naval
purposes Had II been hed IN readiness 10 meet
Or lts, " could have been at once turned over
20 bradford the Barln.s, or the Seguans when
NQ iditlOu began.
kNal .uFN.. 4 lt.a1 a