Savannah morning news. [volume] (Savannah) 1868-1887, 1884-07-08
GRANT & WARDS AFFAIRS.
Liabilities OF sic, .e47 and Actual
Assets of e65.174,

NEW YORK, July Assignee Davies,
ofGrant & Ward. to-day fled an inventory
and scbeduIes Of the firm, which shows
liabilities Of SIG, 792, CAT, nominal assets Of
S27. .1S9 O9s. and actual assets OF $67,
The assignee SAYS that it has been impos-
sible 10 ascertain who were the owners OF
all the secrities in the possession of Grant
& Ward at the time Of their failure. or OF
the securities pledged by them and held
by creditors as cOllaterals for loans, or
the interest Of Grant Il Ward In the Sc
curitiesfound in their possession or pledged
by them as cOllaterals for loans.
The books of the firm didn't show with
any degree Of completeness or accuracy
the transactions Of the firm. No cash book
OF journal has ever been kept since its in
ceptiOn. and no balance sheet has ever
been taken from the books that were kept.
the assignee is informed by their en-
plOyes. No reliable or complete list of
their assets appears, either upon their
books or among their papers.
ALLEGED GOVERNMENT CONTRACTS.
The assignee says that information
came to him that Grant & Ward repre-
sented 10 various parties that the firm
had contracts with the United States Gov
eTnment which were exceedingly proita-
WAE~ that AlEN UUlAUhEA 4DlLuEU6E huuls
from various parties for the alleged Dur
poses OF Investment by the firm in such
alleged contracts, and that the lenders
were guaranteed profits Of certain
amounts. The assignee believes that
these transactions were nothing more or
less than borrowing money at usurious
rates Of interest, and upon fraudulent
representations. He thinks the law to be
that. so far as the defense of usury is con-
arrF IL ~ -.
defense by entering particular persons in
the schedule annexed to the assignments.
and he does not admit that any Of these
parties are entitled to receive anything
from the estate.
REHYPOTHECATION.
In making up his statement the assignee
says that he mas had to depend to a large
extent on statements of the firm and
those claiming to hold obligations of the
firm or doing business with it. Besides
the losses Of the memoranda in nearly
every case where the firm had dealings
with customers or pledges of securities.
the stocks or bonds left in their custody
had either been sold or rehypOthecated.
No satisfactory or complete book of bills
payable or bills receivable was kept by
the firm. In cases where stocks had been
rehypOthecated, they had generally been
rehypothecated for larger amounts than
had been loaned by Grant e. Ward uDOn
them. In the rehypOthecating of securi-
ties pledged with the firm, no attempt had
been made to keep together securities
which had been pledged together. or to
keep the securities of one individual dis
tinct from another. Pledgers had neg
lected to inform the assignee as to certain
matters connected with the firm, which
had rendered him unable to present
a more satisfactory summary of the
assets and liabilities of the firm.
MANY CLAIMANTS FOR SECURITIES.
Nearly all the securities of any SUBJ
stantial value which came into the possess
sion of the assignee on Nav 8, 1884. are
claimed by third parties as their property.
Many of these securities, the assignee
claims. are subject to payment by pledges
Of amounts loaned to them thereon. In
nearly every case the amount of these
claims is in dispute. In the case of the
claim made against the Buffalo, New
York and Philadelphia Railroad Company
for the amount Of S17, ,142 loaned upon $40
of the first mortgage bonds of that road,
not only does the railroad company claim
that on the settlement of its accounts with
Grant q Ward no sum due to secure these
bonds can De held, but two distinct and
specific claims are made by other persons
for whatever interest Grant g. Ward may
have as pledges in these 80 bonds. Very
large pecuuiary transactions in the name
of Grant & Ward were carried on by the
assignOrs, Fish a. Ward, during the years
lSS2-S3-S4, of which no record what
ever appears on the books OF the firm, and
the only evidence of which is found in the
individual check books of assignor Ward,
and in memoranda in private books kept
by assignOr Ward and by assignOrs Fish
X Ward jointly.