The Evening critic. [volume] (Washington, D.C.) 1881-1885, 1884-05-10
THE VANISHED MILLIONS.


Moro AbOut The Great Failure in
Rev YOrlk-IIow Grant & ward Did
business.
The New York Sun says: "rhe developments
in the matters of tho firm Of Grant Il Ward and
Of the Marine National Bank yesterday plainly
indicated thai the worst ls not yet known re-
gardlne them. That no end of complications
have already arisen 10 clear from two suits
that were begun, one by the bank and tho
other by John II, Morris, the assignee OF Presi-
dent James ID. Fish. Both actions were brought
by Bangs Il btotsOn, who are also the attorneys
In the suit OF tho New York, Chicago Il ~.
Louis Railroad Company against Grant 4
ward TO recover Its 81 ,d00,000 OF second mort
gage bonds, pledged by the road with tho trm.
"rhe Marine Bank sues TO recover $780,
GOO, the amount OF tho ovordraft OF Grant q
Ward, which precipitated the suspension OF
the bank In this suit Judge Donohue granted
an attachment against tho property OF james
d. Fish and Ferdinand Ward. The complaint
is verified by Ambrose Snow, vlce.presldent OF
the bank. 1t was learned yesterday that tho
Marine Bank had three different accounts
upon which Ward was the only person author
lied TO draw. one was tho general account OF
special account OF the ilrm, and tho third was
an individual account OF wards, Az the close
OF business OH Saturday theee throe accounts
showed balanco Of about S65OOOO to the
credit OF tho iirm, At tho close OF business on
Monday the balance In their favor was pc. pc.
tween 100000 and 100000, including
"on Monday, it is said, Ward toro throo
checks from tho last leaf OF tho firms check
book. Tho stubs give no record OF what these
checks were used for. IL has since been DIS
covered that ono OF them was for S3OO,OOO,
and drawn TO the order Of the Buffalo, New
York 4 Philadelphia Railroad Company,
which had just pledged s8OO,OOO OF itS gen.
eral mortgage bonds with tho nrm Tho bonds
were Immediately rehypothecated. Another
check was drawn to tho order OF william II.
Vanderbilt for s150,00O, ard was given to that
gentleman I'm return for his check fora simi'
lar amount on the Chemical National Bank.
The check received by the railroad company
was certified and passed through the Clearing
House tho day the bank suspended, but Mr..
Vanderbilt did not get his check around soon
enough. The amount for which the third
check was drawn, and to whose order, cannot
yet be learned.
WAs an example OF the methods OF tho lrm,
II 10 stated that when It's books were opened
ON Tuesday morning they showed balance In
the Marine Bank OF S30O,OOO. When tho
bank got Its returns from the Clearing House
that morning the credit was reduced TO a dc.
nclency OF 100000. Tho Clearing House
called on the bank for Its dobit balance, which
was S5b0,OOO, and Fish ran 10 Grant & Ward
for aid. They claimed that they had bal
ance in bank as stated 100000. Ward was
away, and no ono understood tho situation or
know what he had been doing. The firms n5-
sets, If It had any, were in the vault and Ward
had the key, They were poworless and 50 was
Fish He 20 reported to the Clearing House
committee. At tho samo tlmo Wards worth.
less checks on the First National came back
stamped "no funds" Growing suspicious In
the minds OF the other bank officers conf posing
the committee were now thoroughly aroused,
and In consequence down went the shutters OF
the Marine Bank.
'It was learned yesterday that Mr.. Fish re-
fused 10 assent to the agreement OF the othor
members OF the ilrm, to the effect that each
partner should draw out $4,000 month from
| the profits ana leave the balance OF them as q
working capital. He insisted upon Withdraw
| Ing his full share OF the profits every month,
| and IN consequence drew out In 1888 about
| 100000. 80 far this year no has drawn about
100000. Whether ho know the real nature
Of tho firms operations or not, may mover be
known. He has at different times connded to
some OF his business associates tho fact that
his firm was doing remarkably profitable
tracts. Ward, II is said, agreed 10 the amount
TO bo Withdrawn by each for current eX-
penses from month to month. Tt makes
said ono gentleman, because he ran
the business, and, as the result has shown,
might at any time have taken everything there
l,sras In tho oillce. I do not believe the books
Will begin TO show the transactions of tho
flfm. SO far as any ono has seen, the book
keepers of the firm had little else TO do but at.
tend TO the small stock business. They spent
most OF their time In their chairs. No one
ever saw the Grant boys do anything except
make themselves and their friends comforta'
| he about the ofllce. Ward ran tho whole bust.
| ness, and think that the assignee Will nud
| that the more important papers of the nrm
| we're carried In wards hat. As far as straight
ening out tho affairs OF tho firm Is concerned
| think no one Will envy him his task
| "In accounting for the disappearance OF the
| vast sums Of money received by tho Arm, n
| banker cogniZant OF their affairs said that, In
addition 10 paying part OF It back In the
shape OF dividends or interest, at tho rate Of
| from 3 10 5 per cent. month, TO tho people
| from whom IL has boon obtained, they hal Z
pay largo commissions to number OF person
who had been Instrumental In inducing othe
people TO invest money in tho blind pool. o
late, II is snid, some OF these persons nppar
emily discovered the real nature OF the opora
| ton, and consequently insisted upon ex0rb
| liant commissions. 1t Is stated on eNcellen
skirmlshers received 100000 for his scr
| vices"