19073. Jay Cooke & Company (Philadelphia, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
*
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
1b45bdb1

Response Measures

None

Description

Articles describe the failure/assignment of Jay Cooke & Co., trustees, creditors' meetings and the bank having closed its doors. There is no explicit contemporaneous description of a depositor run in the provided excerpts; the material discusses insolvency, trustee actions, and creditor settlement, consistent with a suspension followed by permanent closure/assignment. Dates of the original failure are not given explicitly in these excerpts, so event date left null.

Events (2)

1. * Other
Newspaper Excerpt
the meeting of the so-called creditors of Jay Cooke & Co., in Philadelphia ... was as clean a fraud ... The whole meeting was arranged by Lewis, the trustee, and was in the interest of Jay Cooke.
Source
newspapers
2. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure/insolvency of Jay Cooke & Co.; assignment to a trustee and creditors' proceedings described (trustee Lewis, creditors' meeting, payment of some claims).
Newspaper Excerpt
as soon as he learned that the bank had closed its doors
Source
newspapers

Newspaper Articles (3)

Article from The Sun, July 29, 1878

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Article Text

itor" says. The Times gives the "printing and stationery" as "$3,972." There are $6,283.40 of printing bills alone, but a large portion of this is for legal printing, which is doubtless included by the Times in the item "costs of litigation, additional fees for professional services and other legal expenses, $38.673." The trustee is highly and deservedly respected in this community. The committee consists of Isaac Norris, a gentleman of great wealth and high standing; John Clayton, a leading lawyer, whose wife is one of the heirs of the Baldwin estate; Robert Shoemaker, a well-known wholesale druggist, all of this city; Charles P. Helfenstein, who represents claims amounting to $120,000, a coal merchant of Shamokin, Pa., and Joseph Brown, a Wilkes-barre banker, whose recent suspension has been caused by this failure and that of Henry Clews & Co. They want the estate wound up. Their paltry salary of $1,000, and the niggardly allowance of $15 per meeting for travelling expenses given to the two country members, does not pay for their trouble and responsibility. "The fat," one of them said, "all goes to pay expenses." From the Hartford Times, The meeting of the so-called creditors of Jay Cooke & Co., in Philadelphia, several days since, was as clean a fraud as ever was imposed upon a swindled people. The whole meeting was arranged by Lewis, the trustee, and was in the interest of Jay Cooke. When Jay Cooke's branch and the First National Bank here, which was also owned and run by the Cookes and others, went up, they held over $17,000 belonging to Mr. Alexander. As soon as he learned that the bank had closed its doors, he attached the building, determined that he would get his money back. This did not succeed, as other creditors had as much right to the bank building as he had. He thereupon began to fight the Cookes in the courts, here and in Philadelphia. He attended one or two of these so-called creditors' meetings in Philadelphia, and seeing clearly that they were shams, he then and there denounced the whole party, and said outright that he intended to prosecute the Cookes criminally as swindlers. Knowing that he was a famous fighter, and being thoroughly acquainted with Alexander's fight with the District Ring here, Cooke was frightened, and, through his attorneys, made approaches toward Alexander, looking to a compromise. Alexander would not listen to any compromise. He said he was in no particular hurry for his money; that he "wanted 100 cents for every dollar, and interest for the time they hold it that nothing less would do, and that he intended to have every cent or nothing. Alexander made a demand every week for his money.and refused to accept the five per cent. dividend. About two weeks ago a firm of lawyers who are in the employ of the Cookes, and who are buying up claims for them all of the time, called upon Mr. Alexander and made offers to settle. They did that because they ascertained that Alexander had got it down fine that John Sherman was a large stockholder in Cooke's national bank, at the same time being Chairman of the Finance Committee of the Senate. It also became known that Mr. Alexander intends to make this the subject of a Congressional investigation at the next session of Congress, all of which had a tendency to make Mr. Sherman uneasy, as no one will for a moment attempt to defend Sherman for buying bank stock and holding it while he also held the most important financial position in the Government. The connection between the two is too plain, and needs no explanation. Alexander told the attorneys that he intended to have his money. and that whether he got it or not he intended to let all the creditors see that Sherman was a party with the Cookes in swindling them. Various propositions were then made, property of various kinds being offered as payment. Alexander looked at some pieces of property, among them one of Grant's houses here, which, it seems, has in some way got into the hands of the Cookes, but he informed the attorneys that nothing would please him but the money, which was paid him on Friday last. The reason for paying him that day was so that he could not gain admittance by right to the creditors' meeting held in Philadelphia on Monday. It was thought that if Alexander was there he would knock the bottom out of the little game the Cookes are playing. It will be difficult for the trustee, or the Cookes, to explain why Mr. Alexander was satisfied in full, while the other creditors, who should have equal rights, have only been paid a five per cent. dividend.


Article from Bozeman Avant Courier, September 12, 1878

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Article Text

# Odds and Ends. Banning, the great army reducer, has been ingloriously slaughtered in the house of his friends. The Democratic Congressional Convention, which convened at Cincinnati Saturday, put Banning is his little bed by beating him for renomination. Another striking illustration of the ingratitude of republics. The Nursery publishes a charming little story of an army mule at Fort Ripley which, witched to a cart, was used every day by fatigue parties to haul off rubbish. The mule learned the bugle calls so that whenever the recall sounded, no matter what he was doing or where he was, whether at work or play, hitched to his cart or not, he would make a break for the stable at a full gallop. He knew that his work was then ended and it was time to rest. Our readers will act wisely and sensibly by patronizing only such establishments as advertise and make known to the world what they have. The men who decline to sustain a local paper, that strives earnestly to bring the resources of its section to the favorable notice of capitalists and others, are wholly undeserving of patronage from any source. It costs something for the settlement of a large bankrupt estate. Since Jay Cook & Co., of Philadelphia, assigned the lawyers have made havoc of the estate. Before the creditors can draw their honest dues the following reductions are made: Counsel fees to the amount of about $41,311.37; extra counsel fees about $39.235.10; incidental expenses about $16,654.55; salaries about $54,646.49; compensation of committee about $34,480. Amounting in the aggregate to $4,187,327.51. The Rev. A. C. Roe remarks, in The Christian Union, that though it shakes faith in the biologists, he can make nothing out of Nature's free fight in forest or garden, but "the survival of the unfittest." The principle of selection of work there is mere strength and robustness, without regard to fragrance or beauty, or usefulness to man or beast. This is a hard tact, but intrenched behind cold frames and hot beds, and armed with rake and spade, biology cannot dislodge him. If good things gain the upper hand, though but slowly, or even hold their own, depend upon it, there's a gardener somewhere at work. May it not also be true of the great world-garden about us? Are all the fools dead? No, but they are trying to get out of existence as fast as possible. The record says that a Troy woman took strychnine because her husband wouldn't run in debt to get her a velvet cloak; a Chicago youth swallowed an overdose of morphine because a bad woman locked him out of her miserable heart and house; a sixteen year old Kentucky girl took rat's-bane because an old married man told her he had no business to love her; an Arcola, Ill., man hung himself in the smoke-house because he possessed only ten thousand dollars, and feared he might come to want. These are little bits of samples of what is going on in the busy world, and every day brings a fresh item.


Article from The Copiah Signal, October 4, 1883

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Article Text

FINANCIAL PANICS. In May, 1837, the New York banks suspended, and the crash, which had threatened for some time, came to the country. This disastrous event was fol. lowed by other failures, many business establishments were forced to close, and even States became bankrupt. Farm products fell greatly in price, credit was n by-word, and the finances of the Government were in such shape that the President of the United States could not always get his salary when it was due. This was about the time when the national debt amounted to only a nominal rum. The panic of 1857 was opened by the failure of the Ohio Life Insurance and Trust Company. Many banks in all the States were obliged to suspend, and certain kinds of paper were abroad, which proved to be worthless. The panic of 1878 was inangurated in September by the failure of Jay Cooke & Co., of Philadelphia. The effects of this last financial hurricane are too well known to need recital here. Various auses have been attributed to these financial caises, almost all writers agreeing, however, that reckless speculation, growing extravagance, and the carelessness with which debts were contracted were among the leading ones.