The Evening critic., 1884-05-09
SERIOUS CHARGES OF FRAUD
In Connection WIN the New York
Hut,4 RaIImrpg.

Tho New York Tribune to-day says! "rhe
facts which are gradually leaking out regard.
Ing the operations and business methods Of
tho suspended firm Of Grant 6 Ward, whose
collapse was coincldont with tho Marine Ma
tional Bank on Tuesday, exhibit tho condition
OF tho house In ovon n worse light than has
been generally imagined. Not only are they
known to have rehypothec1tod tho securities
lodged with them on loans by several railroad
companies, but they have obtained larger ad-
vances ON some OF these collatorals than the
amounts they had advanced.
1.-THE best Information now puts their gross
liabilities at not far from S1OOOOOOO. No es.
Innate can DO made OF their assets exclusive OF
tho loans they made on the securities they
have repledged. No statement is yet obtain.
able respecting the condition OF the Marine
Bank, and the prospect ofthe anal payment to
depoeitors VIII be mere matter OF guesswOrk
until the bank examiner finishes his report.
IAN enormous amount OF unsecured llabili.
ties OF the 0rm exists, comprising notes and
simple receipts for money received for specu-
lation. The story told regarding tho opera.
tlons OF the firm Is as follows The firm
started with tho prestige OF General Grants
name 10 aid tho members in securing capital
and In inspiring confidence In their ability and
position. Actual money was raised on notos
that the ex.President and James ID. Fish had
indorHed. To what extent the responsibility
OF tho conduct OF affairs rests upon Mr.. Fish
and upon Mr.. Ward entirely cannot be learned.
ut Ia not believed that General Grant or u.
tails. Tho copartnership agreement provided
that each member could withdraw $4,000
month, II ts said, the profits above that sum
being retained as capital. Neither OF tho
Grants is believed to have paid closer atten.
tlon to details than tho reg lar drawing OF his
allowance.
"The scheme carried out to obtain the most
funds was based on advances made by the nrm
TO contractors for Indian and other supplies to
the Government, tho firm taking assignments
Of claims from these men and collecting on
them when the contracts wore approved Ia
the regular course OF Government procedure.
by representations respecting these contracts
heavy sums OF money were obtained on notes
or receipts given by the firm or individual
members. High rates OF interest were paid,
and In many cases tho advances were secured
for only few months. Confidence In the
house, however, caused many persons 10 let
their money lie unclaimed for long time. IL
is stated on good authority that there are out
standing nearly S2,00O,O00 OF these unse-
cured obligations Of tho nrm held between two
individuals. II is said that the liabilities of
this character Will amount IN all TO about So
100000"
There were transactions between General
Grant and William II. Vanderbilt on Sunday,
details OF which were learned yesterday. Con.
eral Grant visited Mr.. Vanderbilt on Sunday
and got his check for 81 100000. 1t Is said that
at the request OF General Grant tho check was
dated as OF Saturday, and tho check OF Grant
* Ward on tho Marine Bank Mr., Vanderbilt
agreed not to use for n day or two. 1t Is not
believed that the eX-Prosident knew tho state
OF the firms affairs, and Mr.. Ward is credited
with furnishing a satisfactory explanation OF
the circumstances under which Mr.. Wander
bilrs consent was obtained. When presented,
the check OF Grant & Ward had been rendered
worthless by the two failures. The day after
the failure General Grant called on Mr.. Van.
derbilt, at the latter's desire, and 1t Is said
that assurances were given that he would be
fully protected In tho matter, even II great sac
riHccs were necessary IN the direction of Mrs.
Grants property.