The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-08-03

a loan TO them, and this action might nave noeh
embsrrassed house. nut when he went further,
and lent them over million IN additoh 70 tnis
for ali this favor may perhaps be found In the
fact that Robesons intimate friends and creo-
McrniIocS & ~ "a bonJsmen and had the houss
failed, must have lost S1D,OOO.
PREVIOUS FAvoRs TO THE FIRM.
nut this October Transaction, which. unlike
the attempts III september, was pushed to sue
cessful CON pletion. was by no means the first
favor Jay Cooke, McCulloch & Co. had received
IN co nection with the naval account. 1t Is
stated. by journal no less able and responsible
than the Chicago Times, that this account was
offered in 1860 TO the existing houses, on condi-
IT'S use. Whether this IL true or not, certain 10 Is
that Jay Cooke. McCulloch 4 ". h d no capital.
60. In about two years aud half they made
slONCW OF profits, or $i0O,OO0 n year, and Jay
Cooke co. withdrew their deposited million.
these prouts being substituted and treated as
ca.i tGl. How these great profits were obtained
la market where i've per cent. Is high inter-
est appears from the following faca The
money was usually transmitted to Jay Cooke
Co. at New York, who would profit by its use,
Cooke. McCulloch & Co. These bills being due
al thirty, sixty. or ninety duvs afor presentation
10 the drawees al London, wet not credited 10
time, Jay Cooke, McCulloch Il Co. could get
them discounted or borrow money, using them
The house. doing Si0OD.0p TO sl5,0oO,0O0 OF
business. needed n large working balance. THIS
tnry occurred from tne money hItcr Creultlng
the proceeds Oi bills OF exchange. and tho bal
hncc OF uublic money In their hands sometimes
exceeded $i.60a,o0 at a time sixteen times the
amount Tor which they were under bonds. It's
true that they allowed the Government four per
cent. interest on such balances; but II Is also
true that the Government allowed them one per
cent. on Hll MONEYS disbursed Ivy them on Its ac
count. including these balances. Hence, while
they AID the Government IN two years 10 June
10, 1881 over s5OCsJ III interest, the Government
In the satre tine paid them over $4,000 In COM
missions; az that they actualiy hAd the use OF
Z NJ In ta.tf kaf N to
world, Tree of charge, aud mainly without even
giving security.
TRYING TO HIDE THE EVIDENCE.
Tho statement that the Executive Depart
meuts. In rendering Information ON this subject,
have arranged that Information so AS to render
close aud deliberate scrutiny needful to sscer-
whilo the paymcnt Of terest Is dwelt on, the
allow nee II commissions Is lightly passed over.
wntle itb practical effect IL Ignored, and that no
thing was said about tue use OF time bills In re.
uniting tn the practice was elected by repeated
Inquiry, whe the use that can be made OF them
has never been sta;ed at all.
A more striking illustration OF this reluctance
20 give full Information Ia the arransement OF
Badfords account current, Furnished by the
treasury, SO as to conceal the holding OF large
bal.nccr BY him, whicn "a close anal fsis OF that
account revei ls He often held for some time
balances OF from $1,000 to sl.5OO00U. when
there was no occasion Tor holding any, as he
could at any time sell oil OF exchange on the
Secretary OF the Navy for money wncrewtth to
take up a draft Whether these large balances,
both in September, 1873, and sfterward were
ascettained but he admits tn considerable
sums were on deposit at Morton. Rose Co.'S
without interest, ana though he claims that
other banks where he Kept part OF the money
paid $500 interest, the Government Is not
credited with thus sum or any part Of IL In his
account An 'iysis OF his account also re-
vealed the fact that Lc repeatedly over
Grew at his bank, sometimes to the extent
OF sJOO.O.D at time. As IL WAS needless for him
To 40 thls, I'D "a he always acted under orders
1t Is tolerdoly coAr that some one benefited by
this course. lie stated to the committee tn at
Is L
have borrowed millionii necessary. This suc-
way which the interfngatories pus To him faiied
to develop. he did not under SO ret tnstruc Ions,
| 90 this very thing to son. ooody's profit; and
! London more than Two years after the emer-
| gency which detained him from his regular du-
! ties had passed. and a year after Jay Cooke, Nc
| Cuioch Il Co.'S successors-Ssigman Bros. s.
Co.-had beon ap ointed His bank account
1874, which looks as though ourinG that time 10
money that had been diverted from other APP
preparations to aid Jay Cooke, McCulIoch & Co +.
| W.. being quietly restored, money being mean
| time unlswfully borrowed to meet drifts.
Another case OF misleading arrangement Is
that after the Octoter tr.nsactions we're COM
plete. $4,000 more of bills OF exchange TO Brad
! iord's Greer were oougut from Jay Cooke. Mc-
CUlloch Co.'S New York agent. and appear on
| Bradfoiu's account As transferred to them for
| disbursement; whence It follows that they were
| helped nearly a million more than Kobeson h IA
ayrr Observation-Disclosures. Three hundred thousand
Joldrs OF this sum seems to have been used
euly ii, 1874. To make good Bradford's oyerdrafts
| Of S1OOOCO was exhausted In a month, and lurRer
| oyerdIaits again began.
robson CLAIMING TO De A FOOL.
Robson admits that he made no rigid eI.
| Jay Cooke, McCullocn & Co, before entrus.in
public money 70 them, but took their own rep
resentations. he sent the committee a letter
last March, In which he held out the hope that
| their deOt would be paid before the end OF the
fiscal year on June 30 last; out $t5O,0)J still re-
main unpaid. In two Years and four months.
! when Bar.ngs were ssents, he sent to London
Tor naval purposes t6,e9s,IO0: In the following
| two years anu seven months, when Jay Cooke,
| CuliOcn X Co., were agents, he sent, osteusl.
by for the zane purposes, SO, 900, an Increase
| hypothesis consistent with honesty.
lnere IL little ground for doubling that the
before Jay Cooke Go. failed, was to secre .ly
| loaned 10 save them, and though French swsars
that hey returned IL voluntarily. tue despatch
70 Robeson ind'ates that by SO doing they
| made virtue Of necessity. Rpbeson and Br id-
ford say that Jay Cooke, McCullooh & Co. paid
aoout $25O,UO OF pdymasters' draf out Of the
miiion Ioared IN October; but as, when that
sum was loaned 10 them, they already owed tho
payments must De on the fist debt. Robson
with the proceeds Of the graft for million on
| Co. but their account win the Navy Depart
ment shows that they did not CT dit y
till sept. ~ the maturity OF the bill
Of exchange whereby Robeson " pre-
| sumes' that tho mO1ey was RENTED. Fl.
nallv, his claim that 1t was necessary to lend
| more money In order to get security for what
was ilrsady In Is grOundless, for hy his own
! showing tue following assets 81 jay Cooke
| McCiiloOh Co. were within reach in this cOun-
try railroad bonds $lO,000 syndicate claim
against jaw Cooke Co., sli6O0J railroad IRON,
SA"ND; private estate Of Hugh McCulloch
$4,000 hond OF A. q X L. @. Cltteil, $4,000
total $1l60DJ. winch NO Id have cuveroI the
debt VI t6OJUDO aud left $4,000 beside.
The speech cloees by recommending the abo
litIon Of the use Of thirty. sixty. or ninety days
bills Of exchange for the transmission Of publ,
money abroad, and urging the impeachment d
! RJbesOn.
| DIR. -chliemnnn Compelled 10 Postpone III,
Trninn EXrnXnIInna.