New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-03-30
PoBEsovs USE OF PUBLIC FUNDS.

LETTER FROM TIE SECRETARY IN Defense OF
HIS COURsE-THE GOVERNMENT PROTECTED By
1.-THE RAILROAD IRON COLLATERAL.
WASHINGTON, March 29.-Secretary Robson,
speaking of the dispatches which passed between
himself and Admiral Reynolds about the time Jay
Cooke d Co. failed in 1878, some of which were
printed to-day, saws that great injustice is done him
by the omission of some of the kilograms. In
one of the dispatches dated Sept. 16, two
DAYS before the failure of Jay Cooke &
Co., he ordered Admiral Reynolds to for
ward 81 200, 900 to the London house. The
next telegram published is from Admiral Reynolds
10 Mr. Robson Sept. Is, the day of the informing
him that the million had been stopped III the Trea-
sury Department. Mr.. Robson saws that this last
dispatch is in reply TO one sent that day, and re-
ccyed by Admiral Reynolds about noon, ordering
him 10 stop the payment, and that the stoppage in
tie Treasury Department was the result of that
order. I'm regard to the transaction, a whole
Mr Robson says he Is willing to stand upon the
record as given in his letter to Mr.. Glovers
Committee, furnished the press this evening
lie says that he had deposited with Jay
Cooke McCulloch & Co. 100000 and had he
taken steps to it, but allowed the house to
fail the money would have been lost, but it would
have been forgotten by this time and he would have
escaped criticism. But he chose to attempt to save
it, and the result has been that he has recovered not
only all the money advanced, but has reduced the
amount Of the original debt 5000 900, and now has
aprospect of settling the whole matter up this Sum
mer. The following is Mr.. Robeson's letter:
NAVY DEPARTMENT.
WARRINGTON, u. C., March %, 1876 ) .
SIR Referring TO my letter OF the 10th inst and in
further and More particular response 10 the ineIroga
tories Of yours Of the 2sh ult beg to say that the
letter mentioned were assigned TO by Jay Cooke,
heCuloch Co. as collateral security to secure the Gov
frNf a.
account Of the navy which has been kept in London
since 49, aud which was at the time Of
Jay Cooke. McCaloch & Co. under the following
Circumstances Previous TO May 1871 the said foreign
Brothers Co. who were before that time the bankers
orhscal agents Of said account under appointment
drawn abroad upon them by the Navy Department
account Of Department by its officers OF other persons
fAay 1871 the said firm OF Jay Cooke, MeCulloch
70 were appointed as such temporary special agents
On The terms and conditions set forth in the letter Of the
pelartlnent dated May 10, 1871, 20 Messrs. Barring
neni 70 and with the said firm OF Jay Cooke, McCu-
ioen 4 Co. dated May l.. 1871, copy OF which said
snee Of said appointment by Messrs. Jay Cooke,
seSGall9eh Co, dated May 4 ISL arc herewith
tnd appointment ard agreement being the same in al
epects as lad been previously made and existed with
sPeeal agents OF the Department. except that Messrs
Cooke, AcCuloeh Co we're required TO give ponds
WIN approved security in the sum Of 100000, which
they did Instead of $4,000, which the prevI
l;y required Of and given by Messrs Barring Brothers
Under and Ia pursuance Of said appointment and
etment deposits were made In the usual course, aud
Sla foreign account OF the navy kept before said,
Ce iel5 In London as tho money center OF the world,
tsymssters In all parts OF the world, for tho nnsSi
q o our s ss: n9Ss1 for the e s1
Fey conveniently, and economically M - by drafts
HA"n SOn bankers established at the Hsaey center,