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

The said drm Of Jay Cook, MeCuoch & Co. continued
TO pay The navy drafts In regular course but were
finally obliged, under the operation Of the English law
to go into liquidation when their partners in this
try were formally adjudcaed bankrups, and the final
settlement OF their accounts with this department has
since been delayed by the complication OF their affairs
with the affairs OF the bankrupts which, besides in
JnnnG their credit and locking up their
to intrust all the questions in which the
bankrupts were interested to the consideration and
adjudication OF the United States Courts. Since the
said bankruptcy further remittances have been
made TO them nor any other funds ntrusted TO their
custody. but the drafts drawn upon them have been
accepted by them they came and presented
and have been paid and taken up at maturity by Pay
master General Bradford out OF moneys furnished TO
him by the Navy Department for that purpose order
that the said drafts might be paid In due course with
out 1S. interruption, lion. or discredi, but at a.
additional money to said firm Of Jay Cook, MeCuoch
Co.
The Indebtedness of said arm to the government has
since been gradually reduced by payments made by
them AID by payment OF the notes and credits and
sales OF some OF the property held by the government
as collateral until the amount now due IS the sum OF
$699 l54 10, be asccrtaned at this time,
and without a final adjustment Of the account in the
Treasury For the pay and return OF this sum tho
government now holds IN addition to the original
bond OF the firm above mentioned, the following
SECURITIES
Ftrst-Decrec in the Crcnit Court OF the United
States for the Eastern District of Pennsylvania,
amounting on the LIST day OF March, with interest to
the sum or $3.50 20S 81 which said decree has been
affirmed by the judgment and decision OF the Supreme
Court OF the United States, and is entitled to priority
1
rup partners Of the firm OF Jay Cooke McCuloch Co.
Upon this there has been paid tho OF 1928 20l 2S
leaving balance OF S46l 007 25.
SecOnd-Cains against the estate Of Jay Cooke Co.,
proved by the firm of Jay Cooke, McCulloch 4 Co.,
Of London, amounts and descriptions as follows
First claim amounting in currency to $I5, 1852 70 !;
second, claim amounting IN currency TO $50 225;
third claim amounting in currency TO 81 ASP 53l IL
fourth. claim amounting in currency TO 1928 20 40,
and claim known as the Syndicate claim. amounting
in currency TO STAG 276 Is that all these claims
amount In currency 10 the sum Of 81, 7q9, sos As
| claimed
Offsets, which will. when ascertained. reduce the
amount but not below the sum OF 81 300 600 The
actual value is not accurately ascertaned but
derstood that adjudicated claims be sold In tho
osrket at twenty-five per cent
Thfrd-Four hundred and sixteen 81 900 first mort
gage bonds OF the Indiana and Illinois Central Railroad
Company also las ST. 900 first mortgage bonds OF the
St. Joseph and Denver Railroad Company.
Fourth-Sx thousand seven hundred and twenty one
tons OF English railway in government
at Now York, New Orleans Duluth and Buffalo, esti-
mated to be worth at least 5000 0Oo
Fitfh-Prvatc estate OF Hugh McCuloch in this
country valued at $3.50 000
! The amount now owing said foreign account Is
than $500 900 less than the amount for which tho
government was in advance at the timc of the failure
! OF Jay Cooke 4 Co remittances made In regular
course and II Is believed that the securities held by
the government are amply sufficient to tho pay
| ment of the whole account and that IT will probably
be paid Off full before the end of the present fiscal
year have notice Of the insolvency of the house
of Jay Cooke, McCuoch Co. The said firm have
gone into liquidation have already said account
OF the former bankruptcy OF the members OF the
this country, and the payment OF their Indebtedness
|
OF their before mentioned but led be-
lieve that the of the said firm than suf
ncien to discharge their debts since think the whole
of their Indebtedness to the United States will
be paid out Of the securities specifically pledged for It.
and since the partners OF the said rm in London have
as understand, organized a new house and
| carrying on tho banking business in that city.
| have made no deposits OF the public money fthe
United States with any banking house IN London or
banking firm Of which Jay Cooke and Hugh McCuloch,
! either Of them, members, with which they
| arc connected, except with the said house OF JAY
noE 20 q Of -
navy as Aforesaid ia tho manner and to the amount
aforesaid, and have made none with them since the
! firm OF jay Cooke Il Co. were declared bankrupts.
| not az the time began continued the
said account with the said Jay Cooke, McCulloch Il
Co., that tho said firm had capital capital stock.
but the contrary understood from their partners
agents in this country that they q strong hrm
with good working capital and ample resources in re-
serve, and alter the failure OF Jay Cooke Il Co. was
informed directly from the firm OF Jay Cooke,
McCuoch Co., through dispatches to their agents in
this country that their private ledger still showed
very large working capital besides all their property
and assets; | would further state in response to
your second nterrogao-y that have endeavored to
collect the debts Of said firm the United States by
collecting and commercial credits assigned TO
and by disposng of the property held as collateral
whenever able to do so without risk and TO the
advantage OF the government; that have successfully
defended in the supreme Court OF the State of New
York the right of the United States to about 400
OF the railroad iron assigned TO aforesaid and
stored in the government warehouses in New York.
which right questioned In SAID Court, and that
have enforced the lien OF the United States against
the private estates OF the bankrupt debtors In this
States for the Eastern district OF Pennsylvania and
have obtained decree thereon against SAID bankrupts
has since been affirmed by the Supreme Court OF tho
United States and the right OF priority Of payment
settled in favor of the government
Believing that have in this and my former letter
of March 10 covered tho ground Of all your nterroga
tories remain, very respectfully,
GEORGE NJ robson, Secretary OF the Navy
Hon. j. NJ. GLOVER, Chairman OF the Select Com
mittee tho Real Estate Pool and Jay Cookies In
debtedness, House OF Representatives
VIEWS OF A PROMINENT CITIZEN ON THE AID
Co-vALUE or THE SECURITIES HELD BY
THE GOVERNMENT.
A prominent and esteemed citizen, whose position at
the time referred to secured for him full knowledge
OF the facts. gives the following information, which
vernes oil that has been written by our special Wash
ingon correspondent concerning the relationship be-
the Secretary of the Navy and the house Of Jay
Cooke, McCulloch Co. -
''First lot me remark =" said our informant "that in
my judgment-and 1t Is based somewhat on incidents
which have since occurred-the government will not
lose any OF the money that has been advanced.
Whether II will receive interest upon It's outlay am
not advised state what motives may
have prompted the Secretary in taking such an unusual
course TO
BOLSTER UP THE FORTUNES
of the English house. Personal friendship between
Messrs Robson. McCulloch and others may
prieties OF the case but business interests like
wise may have exerted less OF
direct influence in determining the Official action. For
you will remember that when Jay Cooke failed the
government n large creditor Of the hrn, and II
but natural that Mr. Robson should deem II
necessary sustain the London branch Of the firm
rather than suffer possible loss not positive but
II report be Henry Clews indebted TO the gov
eminent at the time OF his failure In the OF 37 600
With such experience | we'll understand why
the Secretary should have felt little
anticipating still larger loss at the hands OF Jay
Cooke, and why in order 10 avert IT, he made tho Ed
vances question deficit OF 81 900 900 would have
caused criticism the careessness of tho
government in the management OF its financial affairs
But" quericd the reporter ''was not the situation
OF Jay Cooke, McCulloch x Co known IN LondonY"
"Unquestonably, aud II the subject OF anxious
comment in financial circles IL discussed
whether tho house would be saved by the interference
aud assistance OF the Navy Department An effort
made aid from Jour OF i've bankers but tho