The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1884-05-14
A Double Failure.

The startling event Of the week is in the
financial world On Tuesday, the 9th instant,
the Marine bank of New York, and Grant &
Ward, brokers in that city, failed The bank
closed its doors because 1t discovered that it |
had certified the checks of Grant & Ward to
the amount of $4,000, on false assurances
made by Mr.. Ward Of the broker firm. Grant
g. Ward failed by reason of the development
of the fact that Wards management had
ruined the firm. The Marine bank was an old
institution that had successfully weathered the
financial storms of 1857 and 1878 Its presi.
dent, James D. Fish, had held that office for
twenty-six years, was interested in the firm of
Grant & Ward, and was also large operator
in real estate The firm of Grant & Ward was
made up Of Colonel Fred Grant, Ulysses Grant,
Jr., and Jesse Grant, sons of the general and
Ferdinand Ward, who was also director in
the Marine bank General Grant himself was
general partner in the concern Five years
ago Ward was clerk, with thousand dollars
a year. Losing his situation he borrowed a
little money and turned it into Wall street.
He soon made enough to buy a silver mine in
Utah, of which he brought roseate accounts to
New York The mining excitement was then
HIGH and he cleared $400 000 with which he
set up regal private establishment in Brook
lyn and fine country seat at Stamford, Conn.
He Is about thirty-ive years old The deal
ings of the firm covered almost every variety
Of speculation. They borrowed large sums of
money for the purpose OF loaning it again.
They cashed city paper and advanced money
TO government contractors, and to all other APP
plicants who could furnish what appeared to
be passable collsterals Mr.. Ward seems to
have been the trusted financial manager OF the
firm. He signed its checks and conducted its
office and banking affairs. On the day of the
failure his partners were unable to open their
safe and discover their real condition, rs Mr..
Ward had the combination upon which it was
locked, and, anticipating the crash, and lack
ing the courage to meet his former associates
in business and his creditors, did not present
himself at the office. Just before the failure,
Mr.. Ward asked General Grant to obtain $780,
900 from Mr.. Vanderbilt, representing that the
Marine bank might be in trouble which that
sum would avert. General Grant obtained the
money and it was repaid with the check of
the firm. The check was worthless, and the
general assumed the responsibility for this
loan, transferring all his property to secure
Mr.. Vanderbilt Mrs. Grant is also said to
have transferred her property to Mr.. Wander
bit, including the cottage at Long Branch and
her house in New York The generals trans
fer includes two houses in Washington, a house
in Philadelphia and farm in the suburbs of
st. Louis The Grants were thunderstruck
when they learned that the check had been
dshonored. The general was congratulating
himself on the morning of the failure that in
any event his friend was secured When he
learned the contrary the next day, he went
Voluntarily to Mr.. Vanderbilt, told him of
Wards receptions, and assured him that the
debt would be protected If he had to sacrifice
ulb property, anu even IL MIS-. Gfant naQ TO
give up all hers Instances multiply Of the de-
ception practiced in the name OF the firm to
carry on the wild schemes in which the interest
or profits were paid to those who invested
in them out OF the principal they put in. Mr..
Chappees deposit of securities to the amount
of at least 100000 was secured from him
within recent date, Mr.. Ward depicting the
great prosperity Of the firm. J. II. Work, Sec
rotary of the Mexican Southern railway, is
said on good authority, to be n creditor of
e. Na~I 49, H. =
his friends are also victimized to the extent of
about 100000 1t is asserted by General
Grants friends that he supposed, up to the
time of the collapse, that he had TO his credit
in the firm profits Of 81, AGO. 900. A person who
ought to know said that Mr.. Fish insisted on
receiving his "profits." and drew out Of the
firm $4,000 in 1888, and $500 900 this year.
Instances of re-hypothecation, or the fraudu.
lent use, OF securities for money loaned come
to light. The following is an example: The
New York, Chicago 4 st. Louis railway Dor
rowed in April. at one time, $780, 600 and al
another 500, OOO leaving with the firm as Sc
curity 81, 400 600 in the bonds of the railway
It'll alleged that the firm then used these sc.
curites, or some portion of them, as If they
were their own property, and proceeded to Dor
row money by pledging them as security. In
some instances the firm has borrowed on the
securities thus re-hypothecated larger sun
than 1t had loaned. The debts of the concern
are believed to amount to $4,000 900 and it,
assets 50, 100000 The fortune Of the Gran
family is swept away, excepting the $3.50, 00t
given to the general a few years ago. This il
trust fund safely invested, the interest oil
which is paid to the general, though the prin
cipal is his to dispose of by will. Julian 7
Davies has been appointed receiver of tn
assets OF the firm The Marine Bank ha
been declared insolvent by the bank exam
liner, and will be placed In the hands OF
receiver at once The examiner states that tn
assets will be sufficient to pay all the deposit
ors in full.