The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-03-29
he holds. and from which he holds that the govern
ment will be saved from loss:-
NAVY DEPARTMENT,
W .~....r.,.r I.-.I. ~ ICrn

ment will be saved from loss:-
SECRETARY RoBEsoS EXPLAINS
NAVY DEPARTMENT
WAsHISGroN March 10. 1870
SIR acknowledging your letter OF inquiry dated
on February IS, 1876 received at the Department
on the Sd inst, have the 10 say that as shall
not be able to specially all the interroga-
tories therein made without little delay,
occasoned by the necessity Of obtaning-partly from
abroad-and collatng some OF the precise facts have
thought Il might be proper with view Of facilitating
your Investigation, to send an answer to your
nrst nterrogatory far as the OF answering il
at hand. In response to the first interrogatory
say
First have received, as Secretary of the Navy OF
the United States, claims OF the amounts and descrip
tons mentioned in said interrogatory namely
First claim amounting to, currency, $45, 252 rs;
second, claim amounting TO, currency, $50, 225;
third claim amounting to- currency, 81 452,53l III
fourth, claim amounting TO- currency, s125. 30 40;
and also claim known the Syndicate claim,
not mentioned in said interroeatory, but amounting
in currency $144 276 IS that all OF these claims
amount in currency the Of 81, 79e sos Al They
are the claims proved by the firm Of Jay
Cooke, McCulloch Co., OF London, Eng
land, which said firm has not, to my
knowledge been adjudicated bankrupts in any court,
against the firm of Jay Cooke h Co., which said last
named firm has been adjudicatcd bankrupts by the
United States District Court for tho Eastern district
Of Pennsylvania
Second-I hold these claims inter aha collateral
security to secure the balance of what is called
the foreign account of the Navy Department
kept with the said firm of Jay Cooke, McCul-
loch Il Co, Of London, tho bankers and fiscal
agents of the Navy department abroad to meet the
drafts drawn by tho navy paymascrs in all parts Of
the world and TO pay the expenses OF our fleets on
foreign stations. cannot fix absolutely, without the
further Information above alluded to but not yet
received the original balance indebtedness TO secure
which this collateral was taken out but think
safe saying that It exceeded ESQ 900 5000 00O
II has varied in amounts since, and at time
considerably larger than the above
toned and though Il has been largely
reduced by payments aud sales of coateras other
than those mentioned, IL is safe to say that it
amounts after dcductng the TO be received from
the sale OF the colatcrals in progress,
than s12o 600, or $500. 600
Third hold also the following additional collateral
securities for the Indebtedness OF the said firm OF Jay
Cooke McCuloch Co. First. decree in tho
Circuit Court OF the United States for
the Eastern district OF Pennsylvania
amounting, on the 18th dav OF March, with
interest the OF $3.50 2Os S. which said decree
had been affirmed by the judgment aud
decision Of the Supreme Court OF the United States and
is entitled to priority all other claims OF all
creditors of tho bankrupt partners OF the firm OF Jay
Cooke McCuloch Il Co. Upon this there has been
paid the sum of $273, POI 2S, leaving
balance OF s576OO7 IS Second, the negotia-
Bile warehouse receipts for about IL 900 tons of
English railroad iron, the being bonded ware
houses in New York, New Orleans Buffalo nd Duluth
with one lot OF about 4, 500 tons in Canada; third
original bond OF the firm for SlO0, 900, with
securities approved according TO law; fourth, four
hundred ST. 600 bonds OF the Indiana Central and ILL.,
nois Central Railroad companies fifth, hundred
and iortynve ST. 900 bonds OF the ST. Joe and Denver
Railroad Company; sixth, assignment OF the private
estate OF Hugh McCulloch this country, valued at
$l5OOo0
have never been Invested of any colat-
erai hold by me security for said original
indebtedness by any persons judicial trbu-
nal but some OF the collaterals other than those
above mentioned being notes and credits, have been
paid or and the money received by the government
and credited on the account and somo railroad
other than that above mentioned has been sold by the
agents Of the said firm with the assent of tho govern
ment the proceeds being received by the
| and credited on the account as aforesaid
The said firm of Jay Cooke, McCulloch 4 Co arc no
longer the fiscal agents the Navy Department but
they have gone into liquidation under tho English
law account Of the bankruptcy OF some of
their partners in this country and their indebtedness
which is progress OF settlement, has been delayed
only by the complication OF their accounts
with those of the bankrupt firm OF Jay Cooke Co
! expect to bc able to answer more specifically upon
OF the points above mentioned in few days and
also at tho time the remainder OF the
interrogatons, but | send this much without
waiting for the precise information necessary to enable
these and other questions upon the same
subject with the idea that may thus avoid delaying in
any way the progress Of your investigation.
am very respectfully yours,
| GEORGE NJ robson,
Secretary OF the Navy