The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1884-10-30

The Banking Firm of ID. H. Cooke, s. Co.,
of Washington ID. C., Compelled to Close
It's DoOrs-They Promise to Pay Hum
dred Cents on the DOllar-ShrinlSage in
Values the Alleged Cause.
wAsHINGroN, d. c., October %.
The banking house of d. II. Cooke &
Co. closed its doors this morning. The
concern had a capital of $3.50, 900 to Sl,-
000, 900, and had almost unlimited credit.
1t is feared that other houses are in-
volved, and will be dragged into bank
ruptcy. The crash caused a great sensa-
tion in mercantile and financial circles.
The amount of assets and liabilities are
not known.
d. II. Cooke is brother to Jay Cooke,
whose failure precipitated the panic of
1878. A member of the firm stated this
mo rning that the liabilities do pot
exceed the assets by more than $780,,
600. 1t is thought, however, that the
crash will prove disastrous. The
friends of Cooke say that the firm is
only temporarily EN- barrassed.
1t is generally believed that specula-
tion in railroad stocks, in which the
firm has been extensively engaged for
some time, is the cause of the en-
barrassmeut. Cooke is a general IA
vorite among his brother bankers here,
and 1t is believed he can raise any
amount necessary to resume business.
The following notice was placed on the
door OF the banking house tlis morning:
"Owing to our inability to meet pressing
demands, we deem it expedient for the
best interest of all concerned to suspend
temporarily"
A prominent banker offered Cooke q
loan of $780,, 900 to bridge him over his
embarrassment, but the firm declined the
assistance
On the first of January last the liablli-
ties of the house amounted to four hun
dred thousand dollars. To-day they are
a hundred and forty thousand dollars.
The available assets aggregate about q
hundred aud three thousand dollars,
which includes a one-thtrd interest In
the Washington, Ohio & Western Rail-
road, valued at ninety-four thousand dol
lars, which is now paying six per cent.
and forty thousand dollars Ia the bonds
of the Florida Coast Canal, beside
q large interest in telephone
stock. None of these holdings
can be at present realized upon at actual
value, owing to stringenCy-in the market.
1t is said the outstanding paper OF the
uf1n IS amply BeCuIGQ ny COttdbSIhiS
This statement is borne out by the banks
holding such paper. The firm had but
few depositors, its business being princl-
pally buying and selling Of stocks.
A brother of Cooke Informed a repre-
sentative Of the United Press that the
firm will pay a hundred cents on the
dollar, but ia doing this the securities
held by the bank which can not be
realized on just now to the extent of
their par value will have to be used.
Mr.. Cooke stated this morning that he
preferred not to discuss the matter OF
the suspension until he had seen his
partner, Campbell, who is absent in the
West, and whom he had been endeavor-
ing to reach by telegraph, but as yet
without success.
teThe cause of the failure" said Cooke,
sfs attributable to shTinkage in values
and the general distrust prevailing re-
gardiug everything aud everybody, and
consequent inability to collect debts due
the firm, aud carrying out contracts IN
their favor. My partner, Campbell
is absent in the West, and uniformed
of the action l have assumed the
responsibility of taking. The actual liza
bilities of every sGrt, after deducting
Offsets on our books, is about hum
dred and forty thousand dollars.
have no doubt the assets of the firm,
including railroad and land interests,
and deducting every questionable debt
due US, are more than ample to pay every
liability.