Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1883-09-21
TEN YEARS AFTERWARDS
jay Cooke & Co.'s Failure Re-
called by a Creditor.

jay Cooke & Co.'s Failure Re-
called by q Creditor.
New York World.
Ten years ago next Tuesday, Wall
street and the entire country we're
startled BY the announcement Of the
failure of the great banking house Of
Jay Cooke & Co., Of New York, Phil
adelphia and Washington.
With this crash began the panic of
1873. The house OF Fish & Hatch and
others Of prominence we're soon buried
beneath the ruins OF Cookies downfall,
and for three years the country SUIT
fered from extreme financial depres-
sion Unprecedented in its history.
The failure Of Jay Cooke x Co. APP
peared to be an utter and complete
collapse. The liabilities amounted to
over 81, 600, 1000, while the assets for
the most part consisted Of securities
worthless or merely nominal value.
From being one of the great financial
kings Of the nation Jay Cooke in one
day found himself penniless and the
object Of abuse aud obliquy.
Tne firm Of Jay Cooke & Co. has
never been recognized, but all the sur
viving members Of that firm are to day
occupyingpositions oftrust and honor,
and are in possession Of great wealth.
-Mr. Jay Cooke is said by those who
know him we'll to be worth to day over
81 LOCO, 900. 1t was said by an old
friend that Mr.. Cooke regained his
wealth by fortunate mining specula-
tions in Colorado. He has purchased
his famous residence near Philadel-
phia. which he named "0gontz," and
at which he dispensed such lavish
hospitality. He expended over halt
a million dollars on this place. After
his failure it was used as a young
ladies' boarding school. Mr.. Cooke,
It is said, wa enabled to again obtain
possession of it for only 100000.
The other members OF the firm were
his brothers Henry and Pitt Cooke,
both since dead, aud his son Jay
Cooke, Jr., Mr.. Geo. O. Thomas, Mr..
b. O. Fahnestock and Mr.. II. A.
Garland. The youns Mr.. Cooke is a
member Of the firm Of Q. D. Barney &
Co., Philadelphia. Mr.. Thomas is a
member OF the house Of Drexel, Nor
gan 4 10 Mr.. Fahnestock is first
Vice President Of the First National
Bank Of this city, and was lately ad,
mltted as a partner in the house OF
Winslow, Lanier & Co. Mr.. Garland
is second Vice President of the First
National Bank.
Not only have the individual mems
bers OF the firm prospered, but the
affairs of the firm itself have been ad-
ministered satisfactorily to a majority
OF the creditors. Ii is claimed for
Mr.. Cooke and his partners that they
have paid their vast indebtedness dol
lar for dollar. This is practically so.
The estate after failure was admin
istered according toIthe bankruptcy
laws then in existence. Mr.. Edwin
NJ Lewis wa appointed trustee, and a
committee Of four were selected as his
advisers in administering the trust.
The trustee had at various times di.
Sided the securities held by the firm
pro rata among the creditors. At the
period OF the division these securities
were generally Of depressed value, and
il sold Immediately the creditors must
have suffered heavy losses. Those who
have had the prescience to hold on TO
the securities, however, have been
amply rewarded, for their value has
increased rapidly. Those who have
held on to their securities have not
only been paid dollar for dollar 0 ftheir
claims, including interest, but have
profted from 10 to 30 per cent add
tional.
A creditor Of the firm writing to the
World criticises the anagement of
the estate severely. He saws that while
the failure was a disaster to many, yet
some made fortunes Of the estate.
Edwin NJ. Lewis, the trustee, has got
$4,000 per year, making $780, 600 out
OF the estate. Associated with him is
a committee Of four men, who meet
once in six months for about one hour.
They charge $1,000 per year. or $1,000
each. Their names are Isaac Norris.
Robert Shoemaker, Charles I. HELEN
stein and Joseph Brown. These are
the lucky ones. The creditors, after
waiting ten years, have only received
about fifty cents on the dollar that is,
counting the market value Of the as
sets az the time they were distributed):
First dividend, December %, 1874.
about "a per cent; second dividend.
October 81, 1873, about 10 per cent;
third dividend, November 4, 1879.
about II per cent: fourth dividend.
March II, 1881, about 5 per cent; total
% per cent. There are some remain-
ing assets yet, but as the trustee and
are getting so much salary
out OF the estate they are in no hurry
pay 1t over TO the creditors.
The trustees and all of the commit,
tee reside in Philadelphia. TheWorld
reporter therefore showed the above
Mr.. Garland, OF the First National
Bank. MIR. Garland said that the
criticism was most unjust. Mr.. Lewis.
he trustee, is President ofthe Farm
ers and Mechanics Bank, Of Phila.
delphia- and is a man of aeknowl.
edged probity. II he has been paid
he salary stated by the complaining
'rIeditor he has earned il, for he has
gwen 8 large share Of his time and
,itention to the disposal OF the estate.
The other. committeeman are we'll
Known citizens Of Philadelphia. and
whatever remuneration they receive
mas been fixed by law. The assets
ave nearly all been distributed
The remaining sssets will be divided
IS soon as it is advisable 10 do so The
securities divided among the creditors
ave more than paid the amount of
he claims. The firm has passed
through bankruptcy and paid not only
for dollar, but more than legal
interest in addition. AS mach asSi30
been paid for claims against the
state. There have been few com !
plants on the parts Of creditors. A
Mr. brandon was one Of the heaviest ,
'reditors OF the firm. He exchanged
ne Northern Pacific bonds distribu- ]
ed to him BY the trustees for lands in {
ne northwest. In one year the farm I
'epaid him for the amount of his claim
md Il is now ono Of the best known in !
he West.
Mr. Schley, Of Groesbeck & Soblev. |.
he bankers, said that time has shown
he prescience Of Mr. Cooke and yipdi. {
ated his policy in regard 10 the !
Northern Pacific. Those Of the !
reditors who have hold on 10 thar Z