St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-06-15

EG9GZ& ated, For sixteen
PZEC>E NSSA ~ years the success
- 81 - i've trustees of the
[SSCAS@ estate in bankrupt
SITNeS~@z2 ey have nursed the
ACIeN property, and from
- time to time sold
off portions and de clared q dividend
and the final sale will soon be held ana
the final dividend declared, J, Horace
Harding the present trustee, will sell al
auction at Thomas auction rooms, IN
Philadelphia, ON June 10 ana 90, all the
TemNiNiNg assets OF the estate, IheSe
are some AA000 ceres of land IN
NOEth Dakota, some iron land on
Lake Ch0mplaiN, detached pieces OF
Teal estate in MmNeSOt@ NebraSEa
NNd0theE states and q tine collection OF
stocks aud bonds OF detNNet railroads
and ether CORPORATIONS, The whole
pp0NeVty may TGAllSe $lONN0NNO or $lAANNN
which Will 10 0lS0lNNte0 NlNNNg the
l,NNN eyy(l((0ES 0f the eSlNtA and then
the NONkS will be el0Se1 aN0 the &C
counts 1MNl(y NWdttetSsN0 settled by the
eNNy(,
IN the history q NNNkfN& IN this
eNNMtEN> there never WAS \ hN@$e whose
fN(eySNS($ we've ~ VAST NSA0 WNNSe FaNAE
NeAN(NN,& we've ~ eNteSt$(Ne rs the mn
~ Jan (SNNNe y w The N&NeMt house
WAS III RAtlANelNNSA> With NVAMeNe$ N
New N0y& aud WASAlM$tNNA> NCd an
A(lSe<S SSySlN> Jaw CNANe> MeCN(lNeN &CON>
IN l.NMNNM> The mn A&& S,S9o &SeMeS
NAA eAvEeSNeNyteMtS in this country al
most every NSllAsSe being reNveSeMted>
0NESM& the NtAN over $A,OoAOoAOo0 OF
government bonds were sold Ny the
mn, and the head az the house pcs
SeSSea the entire con k&eNce oftAe pgeSS~
dent and his Cabinet ~
USING G0VERNNENr FUNDS
So profound was this faith that the
secretary OF the treasury went to lengths
NTH Mn Cooke which no secretary be-
fore or since ever NenMred, and gave a
citizen authority 10 use the Funds of the
United States in the bond market.
Early in the morning after the aSsaSSi'
nation OF President lincoln Mr., Cooke
telegraphed TO the secretary that gov
eminent bonds must be sustained IN the
market at all hazards, and he desired
th0ainancial support of the United
States in keeping up the price. The
secretary telegraphed back the de-
sired authority, and Mr.. Cooke
sent word to all his agents through
out the country to take all the gov
ernmentS that were offered at IS above
the closing price the previous night. He
bought millions of bonds that day, and
drew money from the New York and
philadelphia Sub-treaSurieS TO pay for
them at night. The next day the price
was advanced another eighth, and more
bonds were bought, but the third day
the run was over.
1t was the Franco-PruSsian war, and
not the panic of 1878, that broke the
house of Jay Cooke 81 Co. After our
War of the Rebellion the firm became
interested in the Northern Pacific rail
road and undertook to build the road Oh
bonds. The original subscription books
of the Northern Pacific Railroad com.
pany show that member of the pool re-
ceived seven-thirty bonds for the full
amount of his subscription, while the
stock was thrown in as bonus. With the
wonderful machinery he had built uI
to float the government loans still in
existence, Mr.. Cooke found no diff
Guilty in bringing the Northern Pacific
project before the people and getting
them to subscribe.
TRIED TO FLOAT BONDS HIMSELF.
He also entered into negotiations
with foreign bankers. and had con
cluded arrangements with the Roths
childs to take in connection with his
own firm $4,000. 900 of the bonds. The
arrangements were verbal, and Weri
made three days before France de
clared war. While the formal paper:
were being drawn UP the war clouC
burst, ana, of course, the plan col
Iapsed. Mr.. Cooke then undertook t
float S30,0O0.O00 of the loan himself, ant
it proved his ruin. He actually sole
S23, 100000 of the bonds at par up Il
that fatal September day in 1913, Whel
the magnificent structure he had reared
crumbled in an hour, During the early
part of 1855 the sales of Northern Pacific
bonds were made with increasing diff
Guilty. The revulsiOn from the great eX
element and expansion of the war wa
at hand. and prices of stocks. lands ant
everything else were shrinking almos
daily. The Northern Pacific w S thel
in course of construction, and the com
pany was drawing on Jay Cook & Co
daily for from $4,000 to 100000. Il
supply this money bond sales wer
relied upon. but the bonds were n
longer as salable as they were. Gradu
ally the firms advances to the road gley
larger, until On the morning of Sept.
the company was adebtOr to the amour
of 81, 167, 43S, of which fully one-hal
was a simple everdraft Oh the firm
books, with not bond as collateral.
CLOSING THE DOORS.
Besides the financial straits referre
to the members of the firm were not
unit on the question of the Northern
Pacific road. Mr.. Cook thought it coult
be built on the proceeds of the bonds
others did not think so. At any rate
was suddenly decided, on the morning
of Sept. Is. to suspend payment, and a
IL O'Clock the doors were shut.
The panic that followed was the wild
est since the South Sea bubble burst i
London. The few days succeeding tn
failure were employed i'll circulatin
paper among the creditors for signal
ures, allowing Jay Cooke TO continue til
business for them, but this could nc
be carried through, and formal banl
ruptcy followed. The creditors wer
asked to decide whether a truste
should be appointed to nurse tn
assets aud distribute them eQul
ably, or whether an aSsis
nee should be appointed
sell off everything and wind up til
estate in short time. A trustee wa
decided upon, and the late Edwin
M. Lewis, President of the Farmer
and Mechanics Bank of Philadelphia
was made the first trustee. The cree
itors elected a committee of five to loo
after their interests. Messrs. John Cla.
ton Isaac Norris, Robert Shoemake
Charles P. HelfenStein and Josep
Brown.
The members of the firm surrendere
all their property of every kind to I'll
trustee. The claims against the estat
flied by $500 creditors, aggregated SIC
S04. S4S. IS. Against these claims wei
assets which seven years later wei
valued at S30.00O.0G0 and which are no
believed to be worth S40,000,000. Son
of the claims were contested and Other
were compromised by the trustee wit
the consent.of the committee of ere,
itors, so that when matters were final
adjusted. the claims unsettled aggr
gated about S6,5O0,000.
PAYING OFF THE CREDITORS.
For the satisfaction of this sum IL
firms estate was devoted. Four div
I, ,o;l M