The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-03-30

tated to- he could not cross examine the witness no
pleased ami have such answers he wished he would
leave the Mr.. Scales, the chairman Of the CON-
mittee grew warm said that the committee should
not be buled by Mr.. Page; he would insist on hav
ing the ruth go to tho country. The witness had
shown exCommissIoner Smith and his successor,
Douglass b DO corrupt, and the facts should not be
distorted OF covered up At this Mr. Page subsidized,
and tho examination was allowed to proceed.
ROBESON'S ADVANCES.
THE SECRETARY IN EXPLANATION OF HIS
ADVANCES TO JAZZ COOKE, M cULEocH Il CO.
TIE METHOD OF FINANCIAL TRANSACTIONS
IN LoHpbN-sRcuRr1ID HELD RY THE GOV
EKEMENr.
WASHINGTON, March 90 1876.
The following is the reply OF Secretary Robson to
the nterrogatories propounded to him by the Com
mittce the Real Estate Pool and Jay Cooke indebted
NAVY DEPARTMENT !
WASHINGTON, d. C., March 81 1876.
SIR:-Refsrring to my letter Of the 10th inst, and
in further and more particular response to the inter-
rogatores OF yours OF the 2Sth ult beg to say that
the claims against the firm Of Jay Cooke
l. Co. In your said letter mentioned were assigned
TO me by Jay Cooke, McCulioch Co as collateral
security secure the government from loss what
is called the oreign ACCOUNT OF the navy, which has
been kept In London since 1915, and which at the
time OF such assignment kept with tho firm of Jay
Cooke, McCulloch Company, under the following
circumstances Previous TO May, 1871, The said for
egn account OF the navy was kept with the house OF
Barring Brothers & Co., who were before that time the
bankers or fiscal agents Of said account under
IN appointment, as Temporary special agents TO
accept and pay drafts drawn abroad upon them by
the Navy Department, or on account Of the de-
partment, by it's officers other persons properly
of May 1871 the said firm OF Jay Cooke McCulloch &
Co. appointed such temporary especial agents.
as Tor the reasons and and on the
Partment, dated May TO- ISL, TO Messrs Barring
Brothers Co AID sAe ls.ser or appointment and
agreement to and with the said hrm Of Jay Cooke,
McCuoch 4 Co, dated May 1, 1871, copy OF which
said letters and copy Of the reply to and eccepance Of
SAID appointment by Messrs Jay Cooke McCuiloch &
respectively, "A, .B" and &c" the said sp,
pointment and agreement beng tho same In all
respects had been previously made and existed with
Messrs. Barring Brothers Co., the previous "tempo-
rary SPECIAL sgonls' OF the department except that
Messrs Jay Cooke, McCulloch Co we're required to
give bond with approved security in the sum OF
800 oOo which they did, instead OF $50 600, which
was the sum previously required OF and given by
Messrs. Barring Brothers & Co
Under and in pursuance of said appointment and
agreement deposits made in the usual
and from time in maintenance and continuance
said foreign account" OF the Navy kept before
said since 1875 in London the money OF the
world for the purpose of meetingand the drafts
OF navy paymasters in all parts Of the world for tho
maintenance Of fleets abroad for the>reason that
the expenses OF ships foreign stations be
much more safely, conveniently and economically
met by drafts drawn upon bankers established at the
money centre with correspondents in every
cial city the world than by carrying the DIFF
ferent nations in large and uncertain amounts
ships or by any other means at the command Of The
department
The amounts and dates of the various deposits made
in maintenance of the account from the LIST day OF
March, 1869, TO the ID day of July 1873 including oil
those made with Messrs Barring Bros q Co., as
well as those made with joy Cooke, McCuoch & Co.,
ID"
AMER the failure of the firm Of Jay Cooke Co., the
correspondents of Jay Cooke McCulloch Co. in this
country, although said last mentioned nrm continued
to pay, as our agents, the navy drafts
drawn upon them in regular course, the
condition Of financial matters TO continue the said
count without additional security which accord
ingy demanded and gwen before the department would
agree continue the The additional security
received protect the said Of
about Ol5 tons OF railroad iron stored in the bonded
warehouses OF the and It's bonds
railroad companies amounting their face to about
5000 900 held collateral security for said
the government to receive the proceeds OF any pay
sales The regular time for remittance
to the said foreign account in the usual
about the LIST OF October, 1873. and
the department then applied TO by the
representatives OF said firm make remit
lance but declined 10 do SO at that timc though
navy drafts we're still paid in the due course by said
firm as our agents a. aforesaid About the middle OF
said month October 1873, however, 1t became
sary either TO make new remtances TO said account
to allow agents TO stop the payment OF drafts
Consultation held with the Secretary OF the Urea
sury and the President upon the subject and in con-
sideraon not only OF the fact that any difficulty the
pay OF navy drafts which had been drawn and
are now being drawn by our paymasters abroad upon
were out IN all parts Of the world,
would greatly inconvenience aud increase
the expense OF naval service abroad but also OF
the fact that any dscredit OF the said nrn OF Jay
Cooke, McCulloch Co., which would revert from the
stopping withdrawal Of the naval account at that
time might have an injurious effect upon the opera
lions OF government, which then carrying
large and important financial transactions with
sOcaon OF bankers Of which ASSOCIATION the said firm OF
Jay Cooke McCulloch co. were members. In placing
the government loan II determined To be wise
public policy TO continue said account provided the
Navy Department could additional security TO
insure the government against probable Osg In pur
suancs Of such determination, the department asked
further security TO the sand account and all
mlttances made thereto, and received further
fer OF railroad iron stored In the government
house the amount OF more than IL, 900 new
rails and 4, 500 Of old rams making the whole
amount OF railroad held by the department col
lateral for said account more than 20, 900 tons and
also notes and commercial credits to tho Of
about 500 COO all OF which has since been paid and
assignment Of the private estate Of Hugh Mccullough
this country valued st $l5O OU0 and also
Of the claims OF the said firm or Jay Cook Nc
tory together with claim not mentioned therein, but
amounting TO the sum OF &l46, go Is
In consideration OF the facts already stated and the
receipt the securities mentioned and In consider
OF the fact that the government under the laws
the United states had right Of priority Of payment
against the private estates OF all tho partners OF the
SAID nrm Of Jay Cooke McCulloch Co. for the full
amount OF their Indebtedness at the time. which said
priority has since been affirmed by the judgment aud /
decree OF the supreme Court OF the United States. and
amount OF the Indebtedness, further deposits
mado continuation of said foreign account
during the said month or October and tho following
month OF November, amounting TO E2l9 199 lis. lid.
or 81, 068 ia 81 said deposits were made through