The New York Herald Newspaper, September 19, 1873, Page 4

ae: COOKE 'S CRASH A Financial Hurricane in Wall Street Yesterday. The Great National Banking House of Jay Cooke & Co. Suspended, The Northern Pacific Railroad Supposed To Be Bankrupt. ‘DIRE DISMAY OF BULLS AND BEARS Depositors’ Money Taken from Bank Vaults to Prop a Railroad Project. A PANIC FOR AN HOU Western Union Tumbling 10 Per Cent in Ten Minutes. Suspension of Richard Schell and Robinson & Suydam. INTERVIEWS. WITH PROMINENT FINANCIERS How the Northern Pacific Was Stumped into Popularity, LIVELY TIMES AHEAD. ‘Indignation Throughout the City and Country. “VIEWS OF VANDERBILT, THE VETERAN. ‘Why Panics Occur—Attempt to Carry Too Heavy Financial Loads—Flimsy Rail- road Schemes the Bane of American Credit. A storm burst yesterday over our financial centre which threatened to convulse and distort all exist- ing values. In Wall street every comparison starts from the great gold panic known as Black Friday, and yesterday, for the first time in four years, peo ple were willing to own that they were witnessing something which approached very closely that dire Gay tn the annals of financial men, ‘The consterna- tion was almost as great, the fear was quite as general. Men who, the day before, supposed they could contro! their millions of dollars, rushed about, their. cheeks blanched with excitement and doubtiul if, as things stood, they could command, on the moment, as many thousand cents, And what was all this about—tne failure of one house and the bankruptcy of a railroad? When men went NEW YORK HERALD, FRIDAY, SEPTEMBER 19, 1873—TRIPLE SHEET. vo tell you that they always distrusted Northern Pactfic; didn’t believe in it; thought it was a fraud and a share; but if you questioned these people you would genei find that, in one way and another, they were interested in the road. Going down the street the general excitement was the same, and it seemed as if the whole of Wall street had turned out to discuss events on the sidewalk. Opposite the Stock Exchange the feeling was intense, and no other topic was discussed but this universal one of Jay Cooke’s failure, All other interests were forgotten in this absorbing one. Brokers did not conceal that they knew not how long they could last, “It all depends,” said one prominent broker to a crowd ol listeners, “whether { can get money in. if Tdon’t Pil bu’st, that’s ail.” And he went away laughing. Ou the corner of Broad street and Exchange place the feeling was still more intense and THE MONKEY MARKET was feverish and excited. From an early hour crowds such a8 have not been seen for years gathered here and began their bid- ding. At first some transactions were made at seven per cent gold, but speedily the rate jumped up to a thirty-second, at which rate money did not remain more than ten minutes before another jump took place to a sixteenth, and rapidly trom this momeut the rate went on inereas- ing, until the price for money reached three-eights and @ half, the highest price asked since last spring, and even at this rate there were plenty of takers, Lenders were scarce, however, and none but the best stocks as security satisiled thi The speculative stocks in many cases would not be taken, As the day wore on there was a sort of reaction on Change, and many of the stocks—indeed, all of them—recovered sligifly, and tus restored a little contidence, Still, mechs were not satisfied and did not beheve in,the durability of the recovery. There was a rumor around, which wanted confirmation, that that saturnine little man, JAY GOULD, HAD STEPPED IN and bought largely in Western Union, thus saving this untortunate stock from a fur.her decline, ‘There is little doubt that Mr. Gould was “short” of most of these stocks, and the panic was a boon to him. Whatever Providence'it 1s watches over this little gentleman it is certain that his strokes of good luck always come in when least expected and are tothe great detriment or other people. “T's an 1) wind that blows bobody any good,” and it’s always other persons’ ill winds that do Mr, Gould the most good. During the entire day the same general sensi- ment Oo! Uneasiness continued, and was added to by the confirmation of the failures of Mr. Richard Schell and Robinson & Suydam, as by the false reports oi the failures of Scott, Strong & Co., George Opdyke, the Union Trust Company and many others, whom it is unnecessary here to mention. As the day wore on, therefore, the great panic received little, if any, abatement, and the feeling ‘was that there was more to come than had yet transpired, Many, no doubt, saved taemseives for a duy by paying a ruinous rate for money who to-day may be unable to repeat the operation. There is a widespread idea of the general insecu- rity of things, and no mun trusts another, IN JAY COOKE'S OFFICE, A HERALD reporter was early in the office of the banking house of Jay Cooke & Co., and the scene Was anytuing but an encouraging one, particularly to the unfortunate people who had money invested in the insticution, and some of whom stood dis- ey around in the office and, like Micaw- , “waiting for something to turk up.” From the appearance of the clerks and higher employés of the establishment it was quite evident that nothing Would turn up, and that the house had suffered a reverse from which recovery was tor the time being, at all even‘s, impossible. While waiting for somebody belonging to the firm to make some statement the reporter was greatly interested by an emblazoned sign which stood over the desk of one of the managers of the firm. It seemed at the time bitter in its irony And ran this:— Aaa eiases athoosrosiebsanncsnscaste Qe > SER AND SEE VESTN NORTHERN PACIFIU 7-30 BONDS, 3 AS GOOD AS GOVERNMENTS. 2 Secured by Mortgages and by Land Grants, Qerrrarnvee ne ners nena ne NOIIOLE IEEE OEDOSEDE DEDEDE In view of the circumstances this sign was in- Silee amusing. Everybody in the office was run- ning down tiis unfortunate road. “Didn't they get speakers and writers to prate about the beauties of the road?” said one, “You couldn’t go anywhere without seeing something about the darned road. This firm here used to ad- vertise that it was @ better paying investment than government bonds, and just as safe. Nuthing would do but that they should advise people of spare means to invest in it, and what is the conse- quence? Youcan hardly find a clergyman or a teacher or a farmer inthe country who doesn’t have some interest in Northern Pacific, and yet what did it all mean? The railroad is unable to pay its debts, and the bu’st of tuis house knocks it sky-high.” Everybody's tongue was wagging, just as bad as it could, against Northern Pacific, and some peo- pie did not hesitate to say that Jay Cooke had not done the “square” thing in all this matter. For a long time the reporter found that the firm would not make A STATEMENT about their diMculty, but finally he was invited into Mr. F. 0, French’s private oMce. Mr. French is 4 member of the New York firm, and took things with an ease which only financiers can acquire own to their business yesterday morning, confl- | dent and happy, they heard inat Jay Cooke & Co. had suspended and that the Northern Pacific Rail- |, road was “burst.” Immediately a rumor Tan through the street, and men felt as if the bottom of Wall street had Ilt- erally dropped out and they were all to go with it, For the moment no one could understand where he stood. The biggest men and the smallest cut round to the Stock Exchange, and when its ponderous doors opened and the first call was an- nounced the brokers were quaking in their shoes, andthe noise and mingling of tongues were en- tirely wortty of the ancient Tower of Babel. ce EVERYBODY WAS SHOUTING, noboay hx tening, and the President had difficulty in rapping Wi! his gavel to get the excited crea- tures below hint fo listen to his voice. The sus- pension of Jay Cooke & Co. was then an- nounced, and a monstrous y¢ll went up and seemed to literally shake the building J2 Which ail these | mad brokers were tor the moniezt confined. | When the call took place stocks of am kinds and descriptions came tumbling down at @ frightful rate, and in a moment many saw themselves ruined. This only served to in- | crease the hubvub to a demoniac revel. Many tore their hair and ran avout as if crazy, pushing, battling, shouting, shrieking to others equally crazy. The Stock Exchange had lost its head, and the usual pandemonium of daily occurrence was as mere music to the noises whicn were being made. Everybody was trying to sell, nobody was willing to buy, and, with the gesticulations of the principals, the breathless running in and out of the clerks, the “tick-tick” of the telegraphs, the overwhelming confusion of tongues and the shufle and patter of the feet on the stone floors, & stranger might lave well believed himselt in a madhouse. In the Gold Exchange the scene was only ar ion of that occurriug in the Stock Ex- change, and the excitement was up to fever heat, But THE SCENE OUTSIDE 41d not ditfer to any Xtent irom that oecur- Ting in the board room. Knots of people were collected on the street corners and oppusite every house of any renown, excitedly discussing the | appalling pews. Around the business quarters of | Jay Cooke & Co., on the corner of Nassau and Wall | streets, there was a dense mass of people, while Immediately around the building was drawna cordon of policemen, looking gloomy but earnest, | as if they expectod some trouble ahead. Men 8 rushing, anxious and hurried, every moment up the steps leading to the banking floor, all with little slips of paper in their hands, and a few mo- ments afterwards they would reappear downcast and crestfallen, their non-success imprinted on their.countenances. It was hard {or these men to think that one of the largest banking houses in the country—a firm of national reputation—nad really failed; but the presentation of their slittle slips of paper at the desks was quite enough—the suspension was patent and undent- able to any who chose to make the test. But the crowd remained around the corners, many gazing curiously into the windows of the marble building as if wanting to gee these men that could so con- vuise ‘THE GRBAT CENTRE OF FINANCE. Two old men stood near by, one of them seem- ingly prostrated with despair. “J have nothing left, John, It was all in there,” said one, pointing to the sign, where “BANKING HOUSE OF JAY COOKE AND CO." stood out in gilt letters, “{ wonder whether my bank is safe,” said the other,. “I guess my money won't stay there any longer.” And away he went to draw what he had out, while the other stood around eagerly listening to all that was said, hoping against hope. Oye Man was explaining lo another how the partngs of London would rejoice over this failure, aud a countryman wes telling & friend of his that down in his town every secon: man owned Northern Pacific; but be nad always been ‘skeered of them raiiroxd specs.,” so he Wouldn’t mind it 80 Much if it were not lor lis, nel hore ‘and all Sehuyler Coliax’s fault, damn him,” he added, At this time in sue hats) cian eleven o'clock, the geueral re’ a thas sont PACIFIC WAD TiSonn ur" with Jay Uooke & Uo. There were plenty of people | Bhall, nO doubt, make some statement, from long habit, One would have thought that nothing in the world had happened to disturo tne serenity of Mr. French. Being both seated the fol- lowing interview took place :— RevorTeR—I want to ask you nothing but what you are willing to make public, Mr. French—Well, you see itis dificult just at Present to Bay anything. We don’t know where x a We only know one thing—that we have led. REPORTER—But you can state, no doubt, the reasons which immediately brought about the fail- ure? Mr. FrENcu—The house was perfectly solvent in itself, but the Jailure is due to a large loan which was made to the Northern Pacific Railroad about a = ago, and which has never been paid. This rge sum of money not being paid in, we found, on examination of our accounts—that it was useless any longer to continue, that stoppage Was much the wiser plan—and so we suspended. The step Was taken on mature consideration, and we were not absolutely precipitated into the necessity of adopting it, RePorrER—It ts not true, then, that your refusal to pay some drafts of the Northern Pacific Railroad this morning caused your suspension? Mr. Freycu—Certainly not. Some drafts for trivial sums may have been presented, but this Must have been alter the failure, and, of course, We reiused to cash them, as we would have done with any others, and did with a great many. RerorTex—Can yeu give me no statement of your labilities and monetary standing? Mr. Fa i—Monetary standing! We, of course, hdve none now; and, as to the, liabilities, why, we have not been abie to make OUT accounts up suf- ciently at the present early hour. To-morrow we However, if you come in late in the afternoon we shall prob- ably have more to give the HERALD, STATEMENT OF THE BANKING HOUSE. The reporter then left the oitice, but returned, as invited, later in the day. He was introduced to aroomon the second foor of the bank, where were two members of the firm—Mr. H. OC, Falun stock. the bead of the house in New York, and Mr. J, A. Garland, The remaining member of the New York firm, besides Mr. French, is Mr. Pitt Cooke, who is on his way from Europe at present aud knows nothing of the condition of his house, Mr. Fahnestock handed the toliowing written statement to the reporter:— JAY COOKE & 00.'S STATEMENT. Jay Cooke & Co, make the loilowing state- ‘The immediate cause of the suspension of Jay Cooke & Co, were the large drawings upon them by their Philadelphia house aud their own de tors during the last fortnight. Both houses suffered a large drain upon their deposits in sequence of the uneasy feeling which has recently revatied, and Which has affected, more or less, ati Rouse: closely identified with new railroad enter- prises. The Philadelphia house had previously been weakened by large cash advances to tne Northern Pacifie Railroad Company, of which they are Onancial agents. The business of Jay Cooke, McCulloch & Co., London, is entirely distinct, and | that house 18 perlectly solvent, so that it will meet | ali its outstanding Grafts and letters of credit without inconvenience to travellers, and have a jarge cash surplus to apply to the American house, ‘Tne firm ot Jay Cooke & Co. and its members have large amounts of real and personal property upon which, however, they cannot immediately r confident depositors will be paid in full, RevorRTER—From = th then, Mr. Fahnestock, delphia house is the cause of your downlall? Mr. FAHNESTOCK—Yes. For @ long time past the Philadelphia house has been drawing upon us for | iarge sums, and ali this money went irom the Philadelphia house to tne coffers of the Northern Pacific Kailroad, We went on lending money in this manner until ve could stand it no longer, so we had to suspend. ReEroRTER—Is it true that you have been taking the money place’ in your bank by depositors to lend it to the Philadelphia house, which im turn loaued It to the Northern Pacific? Mr. FAHNesTOCK—This ts true, quite trae. Where else could we get the money? RerorTeR—Can you tell the sum whieh you have taken of the money deposited in your bank during the past two weeks to lend it to the Northern Pacific? HRAVY LOANS TO THE NORTHRRN PACIFIC. Mr. Fannestock—No; I cannot tell exactly the sum, but it is very large. hn Bd ar long did you anticipate this sus- pension Mr. FAHNESTOCK—We did not anticipate it at all—that 1s, we thought we couid get over it, but since last Monday matters have grown worse. ‘The failures Which have takeu place iately precipitated our danger, until we jound that we could stand it no Jonger. RepoRTER—Have you any idea of your liabilities? Mr, FAUNESTOCK—No; not as yet. We shall pre- fare a statement a8 soon 28 possible, and give it to he public, It may, perhaps, be ready to-morrow, T wish to state here, however, that the don house is perfectly secure. Mr. Jay Cooke, th ad of the house, is in Philadelphia. The other partners in the Philadelphia house are W. G, Moorhead, H. ©, Fahnestock, H. D. Cooke, G, 0, ‘thomas, J. A, Garland, Pitt Cooke, Juy Cooke, Jr, and F. 0, — iN OF RESUMPTION, THE RTER—Do you hope to resume ? Hin ranmusroox—-We may; but | cannot tell, Of depositors have a claim against the Northern Pa- citic road for the money which the road owes us, It is a large sum sot ey bamper the road, but with its payment the will be iree. We, as the nancial agents of the Northern Pacific Ratlroad, é the first claim for the money due us, but the road is not necessarily in bankruptcy, supposing it is prompt in paying our creditors, REPORTER—DO you know the sum in which the Northern Pacific ia indebted to you ¥ Mr. Fannestocx—I cannot tell just at present, and prefer not to make a guess, This terminated the interview. But before the reporter left the office he learned that the last issue of mortgage bonds authorized for the North- ern Pacific Railroad was $30,000,000, Of this sum $25,000,000 had been disposed of and $5,000,000 re- mained unsold, This was indeed all that was left the railroad to dispose of at preseas: It appears that Mr. Jay Cooke had allowed all the money that came ito his banking house to go towards the rail- road, such was his confidence in the road, and so anxious was he to repeat his triumph of war times when he soid the seven-thirty bonds on account of the government with such brilliant success, The second essay was a failure, and so the famous house oi Jay Cooke & Co, went under, THE NORTHERN PACIFIC RAII- ROAD. This road is intended to extend from Lake Superior to Puzet Sound, 1,800 miles, with a branch to Portland, Oregon, 200 miles, At the end of the present year there were to be in opera- tion from Lake Superior to the Missourt River, 453 miles, and from Columbia River to Puget Sound, 106 miles, The road was chartered by Congress on the 2d of July, 1864. Congress made a grant estimated to amount to 47,000,000 acres of alternate sections of land for forty miles on each side of the line of road. The idea of the railroad was its identity with the St. Lawrence, the upper Missouri and the Columbia River, while it crossed the Yellowstone and the Platte. The roll- ing stock of the road consists of 72 locomotive engines, 16 passenger cars, 6 baggage and mail cars, 4 emigrant cars, 25 dump, 1,130 platform freight and 395 box cars; total 1,576 cars, The expenditure has been :— + $1,091,512 12,200,609 Rolling stoc 008,337 ‘Tools, machin Yi Harbor iinprovemenis at Duluth. _H5,033 Total,.....s0ree0 scacoaparongabiatantacvetieiact ISIS BDSTE The authorized share capital of the corapany is $100,000,000. It was necessary to subscribe 2,000,000, and ten per cent paid in, before the or- ganization of the company. There isa mortgage Upon the company’s whole property, including its lands, to secure the germane of bonds, at the rate of $60,000 per mile, These are seven-thirties, ‘The Northern Pacific owns a controlling interest in the stock of the St. Paul and Pacific; it also has taken & lease, or become owners, of the Lake Superior and Mississipp! Railroad, extending trom Paul to Duluth, a distance of 211 miles. On tne Ist of January last the oficers of the road were:—George W. Cass, President; Charles B. Wright, Resident Vice President, and Richard D. Rice, Vice Presi- dent on the Pacttic coast. The directors were :— George W. Cass, Pittsburg, Pa.; Charles B. ahs Philadelphia, Pa.; Richard D, Rice, Augusta, Me. ; Frederick Billings, Woodstock, Vt.; William G. Moorhead, Philadelphia, Pa. ; J. Gregory Smith, St. Albans, Vt.; Wiliam B, Ugden, New York city; William Windom, Winona, Minn.; A. H. Barney, New York city; B. P. Cheney, Boston, Mass.; Wil- liam G, Fargo, Butfalo, N. Y.; James Stinson, Cht- cago, Ill, and Albert H. Catlin, Burlington, Vt. The Executive Committee were :—George W. Cass, harles B, Wright, Richard D. Rice, William G. joorhead and Frederick Billings. SUSPENSION OF RICHARD SCHELL. During the afternoon it became known that Mr. Richard Schell had failed, and the announceivent: was made at the Stock Exchange. Shortly after a HERALD reporter called upon the gentleman and upon sending in his card was immediately intro- duced. Mr. Schell sat talking in his inner office with Mr. Lawrence Jerome. The following inter- view then took place :— ReporteR—Is it trae you have suspended ? Mr, RICHARD SCHELL—It is perfectly true—unfor- tunately so. Ihave suspended operations, RerorTeR—Can you tell me the causes of your suspension ? Mr. SCHELL—I do not wish to say at present, as it may invalidate my securities. I therefore have nothing further to say. From another source the reporter learned that Mr. Schell had been carrying a great deal of West- ern Union as well as Vanderbilt stocks generally, and that the sudden tumble took him unawares. It is ane a that, like many others, he was car- rying hl estern Union on insutticient margins and that here he lost heavily, but that his swapen- si0n ig Nore & Matter of precaution than anytuing Se and that he will very shortly resume opera- ions. SUSPENSION OF ROBINSON & SUYDAM. ‘This failure was also announced at the Stock Ex- change during the afternoon, and caused its ripple of excitement. The effect was only momentary, and stocks suffered no depression in consequence, A HERALD reporter called in at the office o! the firm and saw Mr. Suydam, who expressed himself ag being willing to say anything that would be in- teresting about his own suspension. “This thing has taken us unawares,’ said Mr. Suydam, “and we were unable to stand the sudden burst of the morning.” RerorteR—In what stocks were you most in- terested ? Mr. SuypaM—Western Union was the rock upon which we split, The fall was too great for us to bear, and we had to go under. We could not anti- ctpate such atime as this. We were not carrying any more than 5,000 shares of all stocks, a mere drop in a bucket. Bre pony who held Western Union wished to sell i¢ this Ea ok as it is con- sidered risky stock, and this is why it suffered more than ahy others, All sellers, no buyers, was the cry, and it was too much for as. KeProRTER—Have you apy hope of resumption? Mr. Suypam—I don't know yet, but lhope to be able to fix up matters yet. It isa hard blow, but I trust not irretrievable., A RUMORED PAILURE. Later it was rumored that Scott, Strong & Co, had suspended, and @ HFRALD reporter called at the office and saw one of the firm. He said:—I have heard the rumor, but there is no truth in it, whatever. We have $170,000 in bank, and I don’l think there's any danger of our failing to-day. REPORTER—You could make @ good deal by lend- ing that $170,000 out to-day. ‘ fisxze oF THE Fixm (doubtfally)—Y—a—a—s. Several persons around smiled, FEELING ON THE STREET. On the 8th inst. the New York Warehouse and Security Company, & monetary institution, in Pine street, establisbed for the purpose of advancing money on collaterals, suspended payment, and it was alleged as the cause that they had loanea money on securities from the Kansas, Missouri and Texas Raliroad, which were noi met, and in the vortex of destruction Francis Skiddy and Shepard Gandy were reported as mixed up and as having “gone by the board.” Speculations in sugar and Pacific Mail were likewise quoted as having been the primary cause of the suspensions, all of which were duly reportea in the HERALD of the 9th inst. At that time a prominent banker, who was interviewed by the writer upon the subject of the failure, gave it as his opinion that the beginning of the end had only just commenced, and before the end of Sep- tember as reached not only the city of New York, but the whole country, and mayhap Europe, would be convulsed with A GREAT FINANCIAL PANIC, The gentleman based his premonitions on the reckless manner in which money was invested in wild-cat speculations, especially in the builaing of railroads which had no Visible means of support, and the loose manner in which financial institu- tions loaned money on filmsy securities, How well the prognostications of this gentieman are verified was painfully visible in Wall street and vicinity yesterday, as made apparent by the sus pension of Messrs. Jay Cooke & Co. and others who are named above, HISTORY REPRATS ITSELF. In 1857, on the report of the suspension of the Ohio Life and Trust Company becoming known, the panic which was engendered thereby rust still be fresh in the minds of all business men, The ruin which it Wrought was not confined to one locality, try. Small iry-financial houses made this failure a pretext for suspension, and the effects on com- merce were felt for three years after, when the late rebellion brought back similar scenes by a general suspension of specie payment in 1861. Passing rapidly over the stirring war scenes, in the field as «th in financial circles, the great fuctuations in ¢° ' superinduced by successes or reverses experie... « by our armies in the fleid, we come to the ever memorable Black course it will depend on afier-developments, Qur Friday, gad since then comparative quict bas fai! | came.” reigned in the “Warsaw of the bulls and bears’ until yesterday, when, like @ thunderbolt in a clear sky, came the report that the well known house of Jay Cooke & Co. had suspended payment, CAUSE AND EFFECT. A reporter was yesterday despatened to ascer- tain the views of promiment flvanciers on this figantic suspension. The head of one of the largest inking houses in Wall street was the first gentie- man visited by a HugaLp representative, and who requested not to have bis name mentioned, In re- lation to the failure aay Cooke & Uo. he said:— “I sent this (yesterday) morning, about ten o'clock, to the oMice of Jay Cooke & Co, to ascertain the rate charged by them ior English exchange, when word came back that they could give no quotations. This looked to me Very suspicious, and latonce made up my mind that the house (Jay Cooke & Co.) was either tottering or had d, Shortly after the news of the suspension “What is your opinion of the tallure, and what has caused ft 7 “AS near as I can learn they have for some time past controlied the major portion of the bonds of the Northern Pacific Ratlroad, and recently they attempted to carry the amount in its entirety. Such @ load could only be carried by the whole of Wall street or the government. Yon see the road 1s not peopied to any extent, and through freight never pays. Passenger traffic is the Iie of a rail- road—the passenger needs no handling, no extra labor—but freight is diferent. Then the competi- tion is at present too great, and the earnings of ‘the road were comparatively nothing.” “WHO 13 MOSTLY AFFEOTED by this fatlure??? “Iam sorry to say that in the main mostly poor people will suffer by this disaster, In the West there is scarcely a widow who has saved $100 but what has invested the money in the bonds and coupons oO! this railroad. A prominent statesman identified with ‘C. M.’ had been lecturing on the ‘eat merits of this road, and pictured in glowing rms the advantages to accrue by @ liberal pur- chase of said coilaterais. Whether any great amount will result to these ‘stockholders’ only time can tell, For the present taere will not likely be much demand for these bonds.” “How are other financial institutions affected, and where do you think this crash will stop?” “So far i have heard of only two or three small failures compared with that of Jay Cooke & Co, Dick Schell, Mire is alleged, was heavily in- volved with the Kansas, Missouri and Texas Rail- way Company, New York Warehouse and Security lompany and a staggering load of Western Union wléfraph stock, is reported to have suspended. Robinson & Suydam, 8 reported, have aiso igone up, but a inall, house, and ts loubtful whether thelr {ajlure will amount to mor, than about $100,006, ur f tie oibors ‘in into mil- ons, If by three o’clock no more fafiures are re- ported I think the storm has been weathered, and we will hereaiter sail in a smooth financial sea and business will become buoyant.” “My, = lhave just noticed by the ‘Stock Indl- cator’ that Western Union is ‘off ten per cent {from opening prices. How do you account for it?” “The price of this stock has gone fearfully over ita intrinsic value; the company has paid no dividend since 1870, and the stock has been a regular joot- ball for speculators. In the event of a financial a eraw this stock is the first to be kicked over- joard.’ Mr. Dickey, of Brown Brothers & Co., was next sought for and 1ound at his office, corner of Wall and Hanover streets. ‘his gentleman said he knew very little about Jay Cooke & Co.’s transactions, The business of his house was mainly in exchange with their firm in Europe. In answer to the ques- tion how the tailure affected exchange on Kngland he said that the demand yesterday was not very active and that rates were about the same. Brown Brothers do not make advances on railroad con- structions, hence they are in nowlse affected by the financial furor, Other prominent bankers who were visited by the reporter expressed divers opinions concerning the cause of Jay Cooke & Uo.’s suspension; but gen- erally speaking there was considerable sympathy expressed in their behalt, and, with the exception of the grasping propensity of the house in trying to control exclusively the gigantic enterprise of the Northern Pacitic Hailroad, it is looked upon as ® public calamity. THE RUMOR OF THE FAILURE OF GEORGE OPDYKE has been mfe on the street for the past two days. It was but natural that in tne turmoil of excitement pervading the sacred pre- cincts of the gold and stock market theramors con- cerning this house should be greatly exaggerated. On inquiring at the bank, corner of Cedar and Nassau streets, Mr. Opdyke was found busily en- gaged at his desk, and stated, In reply to the ques- tion whether there was any truth in their reported failure, that there was no foundation whatever in the story. He sald:—We are tully aware of the excitement prevailing, and on account of our senior partner having, by dint of great persuasion, been made President of the New York and Midian Railroad, and whose paper has gone to protest, we have been heavily involved. Hence they imagine that we have been compelled to succumb. You may say that ourbanking business is in no wa; or manner affected by the affairs of the Midlan: Railroad, and that we can pay five dollars for every dollar of our liabilities. We have all along anticipated @ stringent market for this tall, and fully prepared ourselves tor such a contingency, ‘The firm of George Opdyke & Co. is not affected by the trouble. George Opdyke endorsed some of the construction paper as “President,” but only a small amount. THE MIDLAND RAILROAD. The following is a short history of the railroad in question :— The New York and Oswego Midland Rail- road is a through line irom New York to Oswego and Buifalo, The line now is irom Oswego to Middletown, N, Y., 248 miies, with branches from Norwich to Scipio, 85 es; Guilford to New Berlin, 22 miles; Walton to Delhi, 16% miles; Summitville to Elenville, 73; miles, making a total of 379 miles. The com- pany. also lease and operate the New Jersey idland and Montclair rauroads, in New Jersey. A portion of the main line irom Scipio to Buffalo, known as the western extension, is to be con- structed. Three months since contractors, la- borers and others became clamorous for their pay, and there was a change in the directors, Dewitt C. Littiejohn, then President, and other directors resigned, that new capitalists might build the road, These new-comers were to take $4,000,000 of the bonds of the company, the procecds from which were to be applted to construction. This sum Was reported as subscribed. George Opdyke was elected President, and B. Schlesinger ‘Trea- surer. For a time the work went on smoothly, The bonds were to be taken in instalments, and some of the subscribers have not yet paid their subscriptions, and hence the protest. STATEMENT OF THE DIRECTORS. The directors state that the company has not formally suspended, but is simply im temporary financial distress, about $1,000,000 of its obligations having matured which the company had not beea able to meet. The floajmg debt of the road was about $3,000,000, It iS expected that additional subscriptions will be received {rem directors in the Syndicate. Among those who are either directors or have large moneyed interests {m. the corporation are Dewitt C. Litrlejohn, Delos E. Culver, J. W. Merchant, Cortland, ; Abram S. Hewitt, John BR. Clarke, Oxiord, N, enry E. Bartlett, Walton, 3 Josiah Macy, Jr., Aloert T. Rand, Henry en, Philadelphia, and. Henry R. Lew, Middle- town. A receiver was appointed by Judge Blatchfora in the United states Circuit Court yesterday, the particulars of which will be found amoug the Court news in another column. Interview with George Bliss. AHERALD reporter also called at the office of Morton, Bliss & Co, and had a conversation with Mr. George Bliss on the great financial break. Rerorter—What is your opinion of the cause of the Jay Cooke tailure ? Mr. Biiss—Jay Cooke himse!f is to be blamed. The Northern Pacific Railroad has been his hobby all through, and there has been a vast amount of money sunk in that experiment that it will take years to realize anything from, The house here and in Washington have been contributing their resources to sustain the one in Philadelphia, and perhaps were not aware of the financial embar- rassment itapending. The Northern Pacific Rail- road, as it stands, is not worth $5,000 a mile, REPORTER—Do you suppose the concern will be able to meet its liabilities ? Mr.. Buiss—The condition of affairs is not yet quite clear. It will go hard with the houses in this country, put I have no doubt the despatch from London representing that the house there is able to meet its engagements is reliable. RerorTER—What will be tue effect on the mar- ket? Mr. Buiss—The effect in the conutry will be felt @ good deal, for these Northern Pacific bonds have been disposed of north, south, east and west, ‘The country banks will feel the pressure and, of course, there will be much alarm among country depositors ; but, after all, this collapse is not about to do any serious evil. The country Was never so prosperous, and except that individuals will sufer tor awaile, THERE NEED BE NO APPREHENSION of the general evtect. ReEPorTER—To what do you attribute the sndden fail of stocka, the rise in gold and the general un- easiness ? Mr. Biiss— You see, a failure of this kind, while intrinsically harmless tn its results as far as the business of the country is concerned, makes people uneasy because it is the failure of a house well known und supposed to be indestructible. Taken in connection with the suspension of another firm the otier day and rumors of embarrassment aniong others, this occurrence creates that ner- vous lecling that naturally influences the money and stock market. GOLD HAS GONE UP but bad Its disastrous effect upon the entire coun- | Without any vaild cause, all owing to the feverish apxiety prevailing, When the weather io the dog days 18 close, muggy and anpleasantiy sultry, a cloud springs up, # thunder storm occurs and the atmosphere becomes clear and agreeavle when all is over, So it will be with this taiare, It will make an end of reckless and extravagant railway speculation and railway building. solid stocks WUl apprectate and the empty ones will come to their natural level.” The CURBSTONE BROKERS made the falinre # lively topic of discenasion, yet there was but little of @ painfully Cape df teeling evident among them. They rather seemed Wo Cljoy We unWonted excitement of a house with 80 got & name of national reputation and known to the World at large tumbling from its high estate. Mr, Sam Ward, the great Washington lobbyist, bob- | bed about among the eager groups tor a while in the alternoon, and, after scattering various cheer- ful remarks on his way, retired to hot joiats and Cliequot. The number’ of faces unfamiliar to Wall street, though familiar elsewhere, tuat dropped down during the day’s excitement was quite large. Several clergymem, to whom Wall street was a terra incognita, were observed anxiously making their way through the crowds on tue cor- uer of Nassau and Wall in the direction of the bank, with either of two motives, to offer sympathy to the distressed firm, or to Sguize if their deposits were ail right. Ministers of the gospel had always great faiin in Jay Cooke, and their modest savings were largely committed to his keeping. It was easy to see that tuis Was nO Commerce al panic, The vld operators knew exactly, or seemed to know, the whole extent of the break and smoked their cigars in peaveful unconcern, THR UNCBRIAINTIFS OF WALL STREET LIFE never had a fuller ventilation, While @ great throng of noisy fellows were bellowing on the cor- ner of Broad street and New, and making more fuss than i{ the city was on fire, @ iot of quiet chaps were scattered along the sidewalk, above and be- low the Stock Exchange, discus Lue caprices of fortune, ‘they were placidly jolly, and the trouble oi Cooke & Co, appeared to weigh on their minds about as heavily as the bursting of Wise’s balloon. ‘You can’t,’’ said one Bunsbyish sort of a financier, “most always sometimes frequently tell until you bet, and then you ain’t always sure of winning, and even if you do win, you don’t always get your money, and even if you do get your money, the check won’t always certify; and even if your check will certity and you get your money, you may get a counterfeit $500 greenback.” There was a good deal of this genial ratiocination going on among the gentle- men Oj the curb, and iu trath, save the feliows in the clamoring crowd on the corner, nobody was driven distracted by the collapse. INTERVIEW WITH COMMODORE VANDERBILT. At seven o’clock last evening Comseodore Van- derbilt arrived at his house in Fourth street, after adrive in the Park with his handsome trotters, Five minutes later a HERALD reporter sent his name up to the veteran Ratlroad King, with the request that he would accord an interview of a couple of minutes to the writer. After waiting in the hall for a few minutes g nimble-jooted maid servant, who wore” a” blue tendre necktie, skipped down the broad and handsome , Staircase which led to the Commodore's siting room, with an .invitation to follow her, which was promptly accepted, and a few seconds later he.was in the presence of Commodore Vanderbilt. Rising from his chair with the dig- nity of an old courtier, he politely invited the reporter to be seated. He then threw himself back in his capacious easy chair and turned his bright and penetrating eyes upon him, which tacitly said, “1 am waiting for my dinner, and sul- fering the effects of the mauvais quart d'heure, but pray proceed with your questions’? The fol- lowing conversation then took place :— ReEPORTER—You have heard to-day, Mr. bilt, I suppose, of the Wall street panic? ComMMODORE—No. I have only just come in from driving, and it is all news to me; but, alter dinner, I shall see what the evening papers say. REPORTER—Well, you will, perhaps, allow me to tell you that Jay Uooke & Co., with immense la- bilities, have been compelled to close their doors, as they allege, through heavy demands being made upon them by their Philadelphia house. The First National Bank in Washington, of which Mr, Heary D. Cooke was President, is also closed; and, in fact, there is a panic in that city, It is reported also that there will be numerous other failures to- morrow, ComMoDORE—Yes, but you must not forget that ‘the reverse may possibly be the case, and things may brighten. No good counting your chickens fore they are hatched. Rerokgrer—I forgot to tell you Robinson & Suydam are also in difficulties, and that Mr, Richard Schell has also had to suspend payment. PENNSYLVANIA STOCK. ComMODORE (hensively) well there was no reason why Schell should have: fatled—wanted to be rich too quick I sappose—but let me ask you a question; was there any rumor set afloat about Pennsylvania stock ? REPORTER—Yes; such @ story was floated, but met with little credence. It was to the effect that the road was unable to meet its liabilities; but at ect two the canard was officially contra- icted. A pause in the conversation for a few seconds then took place, while the Commodore had his brows contracted as if in thought, ‘The revorter, aiter waiting for the veteran to relax the muscles of his face, asked him what was the cause of the rottenness in Wall street, in hts opinion. Commoporse (giving one of his'keen glances over | his spectacles and speaking deliberately)—I’1 tell you what’s the matter—people undertxke to do about jour times as much business as they can legitimately undertake. Of course, they soon get short and have to bolster up their business as well ag they can by robbing Peter to pay Paul. If peo- Be | carry on business in this mad-cap manner ey must run a-muck. THE COMMODORE ON RAILROADS, “There are @ great many worthless ratlroads started in this country without any means to carry them through. Respectable banking houses in New York, so called, make themselves agents for the sale of the bonds of the railroads in question and give a kind of moral guarantee of their genuine- ness. The bonds soon reach Europe and the mar- kets of the commercial centres, from the character of the endorsers, are soon flooded with them. Now mark the sequence. The road gets into duficuities and bad language is heard all roand, DAMAGING AMERICAN CREDIT. ‘These worthiess roads prejudice the commer- cial credit of our country abroad. Building ratl- roads from nowhere to nowhere at public expense 1s not a legitimate undertaking. I might make aliusions to Texas, Midiand and other new rail- roads, but you must excuse me, for I am a frend of the ireu road, and like to see it stretcning to every corner of the United States, They help to develop our commerce and civilization, and | ought to be encouraged, All 1 have to say is, when railroads are to be built don’t victimize the pnb- lic to build them. “When Ihave some money I buy railroad stock or something else, but I don’t buy on credit. I pay for what I get. Peuple whe live too much on credit generally get brought up with a round turn in the long run. The Wali street ‘averages’ ruin many a man there, and 1s like. faro, Mistrus! will be en- gendered till we, as a nation, do our business on a more solid basis, and pay as we go. [am really very sorry | cannot give the HkRALD any definite information about to-day’s panic, but let us hope that things will straighten themselves out to-mor- row. Vander- THE WECENT ROND FORGERIES. RePORTER—One question more, if you please, Mr. Vanderbilt. Does the New York Central Ratlroad | intend offering any reward for the capture of the | forgers, who recently operated so largely in that | stock? Task this because considerable comment has ae in Wall street over the lethargy of | the Stock Exchange in offering no inducement to capture the gang, who have deirauded the street ‘ont of at legst $150,000? Commodore VANDERBILT—I do not consider such an expenditure of money belonging to the com- any legitimate. What do we care about the lorgeries? . Thanking Mr.. Vanderbilt for his patience and courtesy the reporter withdrew. SCENES AT THE FIFTH AVENUE HOTEL, \we After the terrible excitement which had reigned | im Wall street during the day it was but fair to suppose that an immense rally of the stock brokers would take place in the Filth Avenue Hotei. By nine o’clock the corridors were densely crowded with the bull and bear fraternity, and the most startling rumors had gained general credence, tothe effect that three trust companies would shut their doors to-day. A leading broker remarked, “If that is true hundreds will be ruined, and the occupation of Wall street will be gone.” It is impossible to give any definite idea as to the general tone of the assemblage, more indulging in discouraging prophecies than looking hopefully upon the developments which the morrow would bring forth, A SAVIOR WANTED. A broker remarked :—‘Vanderbilt is the only man who can come to our rescue and re-establish cont- dence, Lhope from the bottom of my heart that he will come down to-morrow, as he did on the occasion of Black Friday, when New York Cenirais Were depreciated irom 10 to 145, throwing ten millions of money on the market, put the stock back and restore public confidence. At the present moment there is. a | simi- lar fight going on to break Vandervilt stocks—Lake Shore, New York Central and Weést- ern Union ; for @ prominent operator, who is now a bear, buying on the decline to cover his short stock, 1s endeavoring to effect this. We are all sixes and sevens here to-night,” continued the speaker. “Nobody has @ fixed opinion and nothing is reliable In the suture of the market, The majority here to-night, I think, are bears, and the wildes and most confiicting rumors are circulated, which | it would be unwise to publish at the present moment. JAY COOKE TO ARRIVE IN NEW YORK TO-DAY. A member of the firm of Jay Cooke & Co. eS | that he nad received news that Mr. Jay Cooke was at last accounts at Lake Superior, and would Probably arrive in New York to-day. ‘Mr, oBawin O’Brien, who 1s Connected with the Gold Bxchange, remarked:—“Yho failure of { Jay Cooke & Co. and the refusal of tie gov. Lergment to accept bids ior mold run gold’ uo z to-day to 111%, which rose to 111% and 117 bat rf broke to 112%4 to-night at the hotel, and one eral transactions have taken place at that figure, The merchants have never, in our commercial his- tery, been in a more favorable position than at the present moment in regard to gold, for the reasem: that our exports have exceeded of late our tm- ports by some seventy millions. A HOPEFUL VIEW. Another broker remarked:—‘iIt isa fact wet worthy of consideration that, in spite of tne ter- rible 3hriikages in railroad stocks to-day, we have had bat one large failure and two smalier ones. So I hope that the worst is tided over.” ‘The following short interview was had with Tom Murphy, who was present :— REPORTER—What do you think of this terribie ex- citement, Mr. Murphy? Mr. MuRPHY—I think those men, pointing to the seething mass of Wall street men, are trying toget up a panic. Good night! ‘The crowd did not leave the Fiith Avenue vestl- bule till near midnight. MORE INTERESTING DETAILS. Jay Cooke’s Usciess Remittance of $15,000,000 Bonds to the Londdn Mar- ket—Forty-five Millions of Capital of Ameriean Rallroad Stock Dishonored in European Markets. Last evening a HERALD reporter had an inter- view with a prominent Philadelpnian at the Fifth Avenue Hotel, who dehvered himself as follows respecting the failure of Jay Cooke & Co. :— “Messrs. Jay Cooke & Co. have had the Northern Pacific Railroad round their necks like an ana- conda. They have fought aswell as they could, feeling that they had miends inthe matter who should not be sacrificed without making @ desperate struggle, and I honestly believe they have done their best. “The immediate cause of the suspension, I hear, ‘Was that they nad advanced $15,000,000 on bonds which they sent over to Europe and could not real- ize on and on which they had mado heavy ad- vances. Since last January, commencing with Ben Halliday’s Oregou and California Ratiroad, cou- ons of interest on upwards Of $45,000,000 of cap- tal, which had been sold principally at 65 to 70, have been protested in European markets and the bonds have gone to no price, damaging our credit abroad; so it was no wonder that Jay Oooke’s bonds were a drug in the British market. - THE LONDON HOUSE, > “With reference to the London branch—Messrs, Jay Cooke, McCullough & Co,—-they will have to liquidate accounts with the United States govern- ment during the current month for the postal ser- vice to Kurope and Post Office orders, aggregating to say £100,000, In addition to this there is to; be counted the money that has been drawn upon of late by the United States naval vessels in European waters. The Treasury Department at Washington hag stated that the firm is not in their debt to the extent of a single cent. I have heared to-night on first rate authority that the London house is in no wayinvolved. A new agency will be appolated by the Government, I believe, I suppose holders of Jay Cooke’s circular letters of credit for travellers will be duly paid at London. “The amount of Northern Pacific Railroad seven- tiirty bonds on the market, 1s, I believe, about twenty millions.” THE SHOCK IN PHILADELPHIA. PHILADELPHIA, Sept. 18, 1873. I wasin the banking house of Jay Cooke & Co, about eleven o’clock this morning, and at that time neither myself nor the public had the slight est suspicion of any unusual perplexities in the affairs of the firm; but an hour afterwards, how- ever, the great iron doors were closed, with a brief card announcing the fact of suspen- sion, which a moment after spread over the city like wildfire, Half aa hour more elapsed and Third street was blockaded with people. They completely filled the thoroughfare from side~- walk to sidewalk, and their excitement evinced itselfin many different forms. A squad of police- men guarded the doors and preciuded all inter- course between the firm within and the creditors without. The crowd was not solely composed of men, but of women as well; and some of the circumstances attenJant upon the gathering of the multitude were exceedingly sad. There were ladies there, down whose faces the tears were streaming, who had placed their allin the hands o/ the firm, and in their anxi- ety could look on none but the darkest side of the suspension, They approached the officers witht vehemence aud expostulation, and in some in- stances imperatively demanded anentrance. The crowd increased rapidly every hour, and it was with the greatest diniculty thatl forced my way through it and ilnally reached the door, I sent in my card, explaining my business, but the answer was presently returned that MR. COOKE WAS NOT IN; that the other members of the house had nothing ‘whatever to say, and nothing would be said tor two or three days. OTHER FAILURES, The house of E. W. Clark, upon the opposite side of the way, went under at the same time, and their doors were besieged by the same frightened and excited throng. ‘Tonight a rumor is out that De Haven & Co. have also suspended, and it is thought that before midnight other faiiuies will be announced, A&G eight o’clock to-night the street 1s as full as it was: ai noon, and rumors of all kinds find easy cre- dence at every coraer. ASSISTANCE OFFERED. It is known, however, that many of the leading Capitalists of this city have offered Jay Cooke the invst liberal loans, and it is sala that a meeting of banking men was lield immediately after the sus- peusion was announced, and that a pecullar sig- hiticance 1s attacued to the same. Every one seems to have the utmost confidence that tle firm will soon resume paymeut, and bets aie offered that the resumption will be made iu jess than thirty days. fhe rumor tuat the Phitae dein hoase closed firstis untrue, tor upon his ariva at his ottice upon Tard street, this morn- in_, M’. Cooke was in the best of spirits and had no ide. uv. the fearful calamity destined to close his doors before sunset. In proof of this statement fre the following aa eae es received trom New York this A, M. by the head of the uirm:— No. 1. INO. Hihw Yous, Sept. 18, 187% Rumor on the street of ie gilure ot Jay Cooke & Co. 0. 2 New Yorx, Sept. 18, 1873. The failure ot Jay Cooke & Co. pronounced untrue. New Yor, Sept. 18, 1373. Jay Cooke & Co. have suspended. The firm has made the announcement that every dollar of the individual fortunes ot its members will be sacriticed to pay all tus creditors. The personal intrigrity of Mr. Cooke 1s not for one Moment doubted, for nis immense amount of reai estate 13 entirely unencumbered, and for the misfortune which has suddenly fallen upon him every one seems to ieel sincere sorrow. If, howeve: the failure is final the result ef it will be terribie indeed, because al- most every one I meet among my acquaintances had all his savings entrusted to the hands of the firm, and in the presence of that great crowd im Third street, composed tor the most part of mem and women who were yesterday in easy circum- , but who, unless their claims are paid, are ruined, vo one cau ielp hoping that the good and honorable old house may yet have strength to raise itseli and meet all its many obligations. Mr. Cooke’s Statement. PHILADELPHIA, Sept. 18, 1878. Mr. Cooke says:—I believe this house wih speedily be relieved from embarrassment, and to this end, If needs be, every doliar of means pos- | sessed by members of the firm will be applied. No one who has a dollar on deposit here will lose it. Every labitity will be faithfaily discharged. fhe temporary suspension of the American house does not affect in any way tne London house of Jay Cooke, McCuiloch & Co., trom whom the following cable telegram waa received this after- noon, creating the liveliest satisiaction when made ‘ to the publi wien: Lonpon, Sept. 18, 1873. ‘The London firm of Mr. Cooke responds to his suspension by scating that all drafts and letters of credit oa them issued by Jay Cooke & Co, will be duly nonored. bbs Cause of the Suspension, PHILADELPHIA, Sept, 18, 1873, Jay Cooke & Co. emphatically deny the scores ot rumors as to the cause of their failure, and say it has been caused, more than by anything else, by imprudent advances to the Northern Pacific Ratl- road Company. They deny positively that they bave anything todo with gold mining operations. ‘They make this stutement in consequence of a re- port telegraphed from New York, The Forma! Announcement. PHILADELPHIA, Sept. 18, 1873. The following card has been posted on tho offica door of Jay Cooke & Co. in this city :— We regret to be ey to announce that, owing tod demands on us, our office has been to suspend payment. In @ few days we able to present & statement of our affairs to ditors, until which time we must ask for thetv patient consideration. We believe our assets | to be iargely in excess of our liabilities. JAY COOKE & CO, The Hiect on the Northern Pacific Rail. road. PHILADELPHIA, Pa., Sept. 15, 1873. Asin connection with the suspension oi Jay Cooke & OO, many holders of Northern Pacific Railroad bonds throughont the country will naturally feor concerned aboyt their juyestwents, inquiry hag