New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-07


firms safe, had not been at the office and it was
impossible to get the securities accounts of the
firm Nothing had been heard of Mr.. Ward, al
though he was known TO have left his home IN
Brooklyn yesterday morning and he was at the
office on Monday. Mr.. Smith said: Z" II is lmpos-
sible for us to tell how we stand. Mr.. Ward has
not been here to-day aud as he had the key to the
safe we cannot get at anything. We may be per-
fectly solvent hope are, but it would be mere
guess TO say what our condition is. We don't know
what it is. Mr.. Ward was here until late yester-
day, and we have no knowledge Of where he is or
why he is detained"
Late in the day the firm succeeded in opening
the safe, and Mr.. Smith SAID that, while the men,
bers had not been able to ascertain how they stood
there was apparently nothing missing from the
safe None of the Grants could be seen at the
Office of the firm.
THE FIRMS BUSINESS.
1t is not generally believed in the
street that Mr.. Wards abssnce has
any significance except his unwillingness
to face the collapse which he may have expected on
Monday. He has to large extent had the manage
ment of the firms general business, Mr. Smith at
tending principally to the execution oforders in the
Stock Exchange. The business done by the house
at the Exchange has not been large Their means
of money-makng appear to have been largely
dealings in mining stocks and some OF the less es-
teemed railroad securities. They undertook the
negotiation of the second mortgage bonds Of
the New-York, Chicago and st. Louis ("Nickel
Pate'D Railroad some time ago and
the recent depression in Wall Street It Is suspected
has not made the transaction a profitable one.
Their handling of mining stocks wcl-informed
bankers say c0Gld not bnt have been attended with
more or less serious loss. The house was also en-
gagged in a business that from its nature involved
enormous risks, whic. whore successful 1t yielded
good profits THIS the advancing of money 10
contractors who furnished the Government with
supplies for Indian agencies and military
posts The firm took assignments from
contractors Of their claims against the
Government and where they proved good 4 large
profit was secured from the heavy discount al
which the advances were made. The risk attend
ing these operations arose from the possibility that
the contractors would not I'LL their contracts. or
that the Government might withhold its payments
in the event of dissatisfaction with the supplies
furnished. Excluding the question Of actual loss,
these operations necessarily tied up the money adj
vanced by the tirm for a long time. The financial
condition of the firm recently has been Indicated by
is issue Of large amount Of paper. Some of this is
said to have been udorsed by General Grant and
James ID. Fish. EXorbltant rates OF interest are
said to have been paid by the firm 10 float its notes
rate az high as per cent for thirty days having
been recently paid. These notes are reported to
have been negotiated in many eases on Representa-
tions that tho house was interested in a big Gov
erumont contract, which was promised as certain
to be profitable, but the particulars Of which
would have to b. kept secret. The firm is
said to have been interested in tho Bufa-
10, New-York and PHILADELPHIA Railroad,
and many of the stocks sold under the rule at the
StOcl Exchange yesterday are considered far from
being irst-class cOllaterals for loans. Most of the
sales made, it is understood, were Of colaterals
held on a loan by the firm Of Laidlaw tC Co. The
list is So 900 United States coupon per cent
bonds and S33, 900 Nickel Plate second mortgage
bonds, and the following shares of stock: 600
Cleveland, Columbus, Cincinnati and Indianapolis,
800 r chester and Plttshurg, 200 Wabash pre-
ferred, 100 American Telegraph and Cable, 300
Chicago st. Paul and Omaha common, and 800
Western Union Telegraph.
CAUSE OF TIE BANKS FAILURE.
There seems to be little doubt that the Marine
National Bank has been pulled down through the
unfortunate operations of Grant Il Ward. contrary
to the general opinion first held i'll the Street. The
best information Obtainable as to the immediate
cause of the suspension points 10 the Overcertitca
ton of checks Of the firm. and loans made collat
erals that are not available. The firm is said TO be
creditor to the bank to the extent of over $500 000
Some reports place the amount as high
as 100000. The funds of the bank
were lcssened by the withdrawal on Monday of
$500, 600 of the city moneys kept on deposit. The
last statement of the bank showed deposit liabli-
ties of over $j,00O000 and cash on hand of about
81 800, 900 on Saturday. The extent to which the
bank is involved is known only to Mr.. Fish, the
suspension complete surprise to the directors.
1t is said that loans have been made to large
amount to Mr.. Fish which cannot be protected by
him. United States Bank Examiner A. NJ. Serbia
took charge of tho banks affairs yesterday, but
he decided not to make any statement to reporters
The management of the affairs of the bauk was
left almost entirely in Mr. Fish's hands, and the
several directors yesterday confessed that they
knew nothing of the character of many of the col
laterals held to loans II is feared that the
condition OF the institution was known TO the
president to be so bad that he realized that il w0uld
be futile to attempt to raise funds to tide il
the present trouble. At any rate The suspension
was ordered by Air. Fish without consultation with
the directors and without any steps be-
ing taken to secure the temporary
support Of other banks Mr. Fishs
course taken in connection with his relations as
general partner with Grant n Ward, has excited
general comment. Even those who have known
him well declare that his action WAS unWise and
unless the bank was hopclessly insel
vent. His ignoring Of the directors with regard TO
the suspension finds no excuse among bankers. and
the best that is SAID for him by friends is that on
discovering in the morning the condition Of his
firm and the absence of Mr.. Ward, he iInpet
uOusly decided to close the bank until he
could ascertain how affairs stood The loans made
to him and 10 Mr. Ward, who is also director, if
hey prove to be as large is believed may involve
the question of the legality of the action of the
management.
The Marine Bank is'said to have made loans ON
United Pipe Line certificates to tine extent of
900 600 barrels. II one of the first institutions
10 lend money on this kind Of collateral and several
years ago il had he accounts of most of the oil
brokers. Since the SeabOaTd Bank opened how
ever, most of the leading brokers and operators
have transferred Their accounts 10 IT from the Ma