The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-04-03
vol. XLllI.-N0. 7C3.
G0bENON SELF-C0NVICTED.
mrs tSr. or THfT PJHLFC FUNDS TO
pEOP 4 BiNhL LUPT FIRM.
Che Inesal Advance. to PA, Jsy Cooke. Nc


s,r,ns clear Case Ter imponchment.
WAsHiNG1oS, April 1.-Tho attempt OF
A.or uobsscn to defend his conduct In using |
,,e n.,,t,y and credit OF the Government to sus-
,.i, the sinking fortunes Of the London branch |
., house IT JAY Cooke n 90. will only make |
h. Gull, the more apparent when all the facts |
a. tho 9, a. are cSposed. His answer to the in |
,.,r,s,tories OF the Real Estate Pool Committee |
4. lis prepared. and va meant TO deceive |
con,ress and the country. Important facts are |
withheld. and others wilfully m'srepresented.
In the first place he ptetends TO give "the
,moun.s and caics Of the various deposits
made with ia, Cooke, McCulloch Co., but
he stop. sno It On the I'd day OF July, ls'S
whv did ne do thi.l Was that the last deposit
h. made with tie nrm before the panic OF 1897
mi. IS Undoubtedly what he would have the
committee infcr. Indeed he does not say one
word in hi, answer about the deposits made by
oeble ON SEPT. a. six days after the failure OF
Ja,tookeS Co. Ihls answer, It must be borne
In md WIS written on tho eid Of March. six
before hls te.~4roins concerning these de
posi-. we're made putnc by the committee.
Afcs mentioning in ni~ letter that "tho
mounts aud da',s q various deposits" were
shown 10 an a, mpanyins statement he pro-
seeds to eay;
eerr ett. II is, t0 ke NcC hnoch \ 20 10 thi.
country athDush -d irt M .ntioued nrm coninued TO
pa ~ aE,lts. the navy drais drawn w. N thriu u
felulir c'utse. Tie drpartn,nt Nas n0s Nulias ~ tnr
si.Ilr cd e. unl Tom ci uuAnth mat y. 'o'lllhuetne
iad account Without eeeitienal .ecr Snlsh S.s
sccofdi- : cemsndc ! ga ~ s,Nen 1et,te He eep-it
uelt eou d agree a. continue the same
The fact IS. as shown by Robcsons kilograms
that one milton and a half Of dollars were given
to Jay Cooke, McCulloch Co. six days after the
hllure Of the principal house In this country.
lnd without any security whatever being put up
by either the house here Or ITS branch In Lon
don. This Is concl lsively shown by the following
ssble despatch from Bradford, the Paymas aster-
General Of the navy who was in London along
with Cattell trying 10 bolster the credit OF the
bankrupt nrm. Under date OF sept. - Bradford
kleerAphs:
Wit c.'!s have ts long :, l3tsTyw VIII WIZ esg,
iss aood. ~ ne egif BE n,oDs-t nms thes cfrnoi
eits Ll40 bt ss.ffg atif lA.asliafrg Iieg 20 ,
~ ~, ~ NJ al sc. Nccasc6 have po.ye a,,ur
ance conuaudus nay Diei thsl nay' dr,ii Ia resniar
house most uuw,i, .or Government interest.
Itis perfectly clear from that portion OF the
despatch e. hich hayeitalicisel that Jay Cooke,
McCulloch & CO. werc unable to elys any tansi-
bic security even to protect the deposits already
In their hands. sud everybody knows that jay
Cooke X Go. could give no security, for they had
become ii-ulNent, and all their assets must, un-
der this Bankrupt law, hc held for the benefit OF
oil ,hoir creditors. 1t was too late. IN other
word. for the principal house here 10 make the
Government Il preferred creditor in order to
protect its deposits with the branch house IN
London. II 1t could not secure the Govern
nent sga.nst loss on money already In the hands
.. the London nrm, how could 1t, after it was
BANKRUPT. make the Government good on de-
posits to lie made ia the futureI
That nothing was done to secure the Govern
neut IS further shown by another despatch
sibled by bradford on tue same day, Sept %
which Is as follows:
Yours received and iully under,,,ooi. Esrn,,suy a
worS 10 cary on, 1oHT yt,Ns Nv rg11&,s & 81 i.Se,e
u.ns open 70 me ih.g a., a. % ,,
Eo voc II sss.s az: as 81 rtS,e ,ats s
public sentiment shows conndeacc ln house. Hope
opy hS % hoase vii eaae oin1rio~ throush titi
bahSers 10 all psrstnst navy drafts will be pronp'i
Tue very next lay Robson took definite &C
ton In the matter, as the following Telegram
shows: -.
Commoiore R,Dnoias, AcrH0 Sersiiry Ndry, HaI
da. 'Sa Sm .ss,s2 s fy' t fPaaa ss
NJ p e So , N Pgri9ss sy t. .Sr.' ei 81 pIep
ALsne. to 70 broadway GEo. NJ Rom SOY.
follows;
navy DEPARTMENT, wAsuISoroS. sept. "a. 7S
ose, Jt hobs'ol, oU, iHy D"ee.0r q. r. CHH'r 9
r. ,uons ,hr usn, I'D smogn, to credit Of Cutie
WILLIAM REYSoLDs. Acting secretary
Thus It appears that Robeson gave Bradfore
che pa astsr. General OF the Navy, sl,500O00 /
gold Of the money Of the United States, 10 b
used to sustaln the credit OF the failing hrm {
Jay Cooke, AcCulloch & Co., without their civ
Ing cue dollar Of security 10 protect the Cover
uent Tue two kilograms from Bradford, Hboy
quoted, prove this beyond adow Of a douh
IL the lrst he says that II would be impossibl
for tEeu. 10 tue then condition Of things to CIV
kngiblo security 10 London, but In Il day or Nv
they may possibly be able TO arrange to pre-
sect the account with securities In New Yori
Th,re j, not one word here about hypothecatin
securities g. protect further advance. II the
have good luck however, they may be able I
make tue Government good on what 1t has a
reauy Ia their hands. In the second telcgral
bradford says that the 1rm Is lguring up its a
sets s-makug u balance sheet-to enatle theI
~ onect the views OF the Secretary, and If the
make as good a showing as he expects theT
vii he surplus outside the private estates
she Rnghsh meuhors Of the house. II Ia sti
al hypothesis. There is nothing deAnite-n
tane1ale security. Aud yet In the face Of thes
fact' Robson risks Sl,jUOOOO In gold additions
ol lhs Government money with house that
Nuabie 70 give tangible security " for nearly
million ateady In it, hands This Is the fact
deliberately suupresses In his answer OF Marc
~ TO me committee. lie never once referred I
thls niliion and a half that he had advanced q
eept' ~ tut be deliberately states that the Go
ernmrnt would not suffer the account to RENAL
uhtU Adni,ional security had been given, whiC
- as have -hown double falsehOod.
but this Is not ALL lie goes on In his answ
-al ei t1e above untrue statement about r
curing Jay Cooke, McCullooh & Co. to Give a.
ail'on"l security Lefore allowing them to reta
the hcccunt-to says
ll regular Tine iora new remittance TO the said fr
~ Ht' ~ 10 u-ual couts came about the 1t
f,ue 20 lfg'tn al yes n saiq nrin T. maxi such 4.
~ ."'A O. ~ were st PAD IN due course y sa
stN' No aSrus AZ. Al. About the mlldle 81 1
e'lh ~ btlptef 1873, however, "a be talne uccl
i''i ln make urA rcuittlnccs 70 said count
~ 4l.H! ril hltu thr S.cretarl Of the Irri
~ ''N ffN dent nnon The subject, nd In cOis
,' p" .Nt puh % tnt iset that any olinuuiy Ia &
t-''N ~ our navy dflfir, Wurh h4u been draw
~ ia' our rrsu ar agents .rd Nhi,h " 10 ont
a.. wa p q Iht Wuri, N0ul htealiY ilCHuYtnlel
11 l.e rAn'nsro Of our naval service abr0l
H., f.h.l tlW aaY disred.t ui ne said nfm
!Ii.t aii NItlh. aNal of tlt naval account
M t.' sthl Do h4NeHI HJuUous Ne upon the up
Ir.r Az, VIZ NrLW.hI "hel tnen arriving
n,u 'u WPHuut tn.ucl traA tIoLs WIN
HN 10 D kFrf. Whlri HsHOrialluu