The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-07-29
LAY COOKE & CO.'S FAILURE.
sOuE TNDICirTONs THtT PRE'EDED
md FORETOLD THE Crash.


..t Il.trrs-- " here More than Million
,n. sunk-The Trustees Cloudy Report.
putf,prrriirA. July 27.-Thc failure Of
1ov Cookie 4 Co., was announced on Snrt Is.
,s-2 I'm, There wore indications long before
MAT should have protected country banks and
bankers from loss. In the year imro liataly
rre.cltng the suspension industrious drum-
,,er- u -itcl them. soliciting exchange ortryiug
n Induce them TO change their Philadelphia
correspondents and draw on jay Cooke 4 Co..
The zcnl ofthc-c agents sometimes outran their
di-er,tian TIN" President oi a Lebanon county
hank said that a drummer " thc kind described
assorted that the firm had cleared s12O0O.ou0 in
one day He was given to understand. however.
Mat a., bank was very well satisfied with lis
c.rr,-l oudrnt. ami desired no change.
I'm the frs, place" tho President snid. Il
dill not believe him. and in the second place
thought that II they were engaged in any sp"cu-
Ltiors hy which they could mako sl2.oOOnOo In
one day thoy were likely to lose us much. or
more. on the following day"
There was much earlier occurrence no less
thau seven years before the catasir. pho that
II fnly understood. would have hecn a sum-
Client warming The Preston Mining and Inn
movement Company was one " Jay Cookies
schemes. though his name docs not nppoar
among the managers. the only sign of his con-
no. NN WIFI IL bfil- lif liillf ~ Nllllill ~.
M5orhead among the directors. The President.
the Hon. Henry ID. Moore. a man II urknow-
edged integrity, served A. n ngurehead Tho
caral stock was at first put at t5000O0 Tho
lands II the company. situated in Schuylkill
county were very valuable. Their position
was such that no pumping was required. rs the
water from the mines could be drained of at
comparatively trning cost. This saved one OF
hehcavicst items " expense In the mining Of
coal an expense which must be met MI the year
round. whether tho men are working or not.
Their superintendent. Mr. kocruer, il one ut
the most ~kilful mining engineers IN the coun-
try. Add 20 all these advantages the facts that in
1864 everything was running nj high pressure.
the demand Tor coal Tor factory rolling mill
and steamship use kept even with the supply.
cst price. and YOU have combination OF favor
able circumstances which might we'll make the
stock seem too thick and TO require Watering.
IT'D" vnnag'rs performed tils op ration mol
wisely hut too we'll" dilutng II until il was too
thin. They added five times th" original
amount making tho sum total t3UUuupO, md
placing the new stock 10y the usual mot Iols for
such cus"s made and provided. Mr.. koerner
saw his task seNtupled without corresI ending
Increase IN his resources. for the money raised
hl the new stock went. II COURSE pro rata into
tho pockets - the former stockholders. still
he applied himself e. the work. and ~ reedri
~ 'l' airing enough Tor a ton per cent. llNd'nd
during the last year of the war. when every nerve
peace. But on tn" daN ~ the fan Of Richmond
douh" blow Wa struck 40 the existence and
welfare Uf the Pr -fNU Mining and Improve.
mrnt Company. The war demand fnr coal
cca.ed and the c.lllr WIS -irk"l out for O-onfe
the famous mansion Of JAW Cook" neur York
Road Station. ON the North PENNSYLVANIA Rail
rOad.
Mr.. koerner was In the position Of q gen, raj
sent into hostile country with orders not ON y
60 Keep his military chest iull without ass i-t-
nnrc. hut 20 ropien sh th" home treasury. H.
had been ahi" 10 do this when the national pulse
beat at the rate II ~ But Nhcu the reaction
set in h. found himself iu deny waters. which
neither pumping nor draining would aia,e
HE drafts upon thr home department cuWe
arrears. They could not live on promises und
they we're not slow n saving so
The hui.ding. II OEontz consumed a year. and
II cost M least sluWtW just as It was COM
petd and u. ,nrwsnapers were SCUM ling q,
praises Of both building and builder. MIR
ko"rn"t surce"dcd In ndurngthe miners To- re-
sumo work. after suspension OF four months
ii manly course had won their esteem and
cunnlcnee and though they had lost faith in
his principals. they were willing. with him. "a
atten ~ 10 retrieve the day for themselves and
for he company. But another element unex-
pectedly appeared. TIE II N. o. / Bsrhtel. ai
present one of the Associated Law Judge, of
S'huylkill county. wis -'' X INK SENATORIAL HON
ors. II was. OF course. iudiSpou SADLY necas sary
that lie should prgyc himself " the friend Of tht
workingmHn." knarnryism was not yet IN
vogue, but lac saw his opportunity and avallrt
himself oi II. ii" came 10 IA" mn ers ana calle'
their attention To- the lavish expenditures OF tn
CAPITALISTS. who had not been able, or UeTLal.