The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1884-05-21
BtsYBD9 64lHBLERs


lITIUmU nUN III -filIN
| CRASH n WALL sTREEr-FRED GRASz
| A swENDI.ER, AND HIS FATHER no
4~non mtonaP krrEr rsFa
H.. The brioEnolcs We gave in our
! lastissueaftho failure ofthe Marine
bank and Grantk Ward of New York,
came near euImfnating on Wednes-
day last in a financial panic as dis
astroEs as that of the memorable
Black Friday. The trouble com
menced, with the total collapse on
| Tuesday of the firm of Grant &
Ward, brokers, on q colossal scale,
and of the Marine bank, with which
sUbe firm was associated. On We'd
nesday the excitement was intensi-
/ fed aud the crisis reached by the
i announcement of the suspension OF
the Metropolitan bank of NV York,
and the Atlantic State bank OF
BrsoklyD, and the following named
private, BAN ers and brokers; Hatch
| i Foote, Donnel, Lawson a Simp
son, Hotchkiss & Burnham, o. nj.
Bogart & Go, Nelson, Robinson &
leo. A. Dystt a. CO., Golf a. Randall,
aud J. c.. Williamsro& Co. The
timely action Of the clearing house
and the other city banks in coming
to the help Of the Metropolitan bank,
and. the order of Secretary Felger
iorthe immediate payment Of the
Sl0,O00,00O bonds called for re-
/ demption June 10th, served to quiet
I affairs in measure The next day
few failures were announced, but
a better feeling prevailed, which has
since been steadily improving. Re
ceiver Davis reports the Liabilities
of Grant & Ward, as far as he is able
10 ascertain, ut $14,50l ,534. The
/ eollatei-aIs held by creditors are be-
tween ten and twelve millions, leav-
ing an unsecured Indebtedness Of
between two and three millions
I Tie Supreme Court has granted
an order giving the Chicago and
Atlantie Railway Company leave to
prosecute an action against Receiver
J ulien 7, Davis, jointly with other
parties, as tho company may be adj
vised, for the purpose of obtaining
the relief 70 which It was entitled
relating to notes or sther securities
heretofore belonging to the railway
company, and held, negotiated or
otherwise disposed of by the firm of
Grant 4 Ward. De-
It is charged, upon information
aud belief, that Grant 4 Ward, in
violation of the agreement have
separated and divided the notes and
bonds into parcels, mixing with
other securities, and have used mis-
iceiiaheous lots in raising money for
their own purposes uidD --3Gf-lt q
At ths examination of Ferdinand
Ward, on Friday last, some Of the
testimony elected was NEST start
fling character. He admitted frank
lv. that the business ofithe late firm
of Grant & Ward bad been oonduet-
cd ON a wholly fictitious basis, and
implicated a number of gentlemen,
who will feel very small in conse-
oasnee Of his revelations. The ten
tiency OF the testimony thus far is
TO show that the sons Of Gen. Grant
and other financiers were. % well
aware that the business Of the firm
was being conducted on basis of
prodigioas swindling. In tho course
of his testimony Mr.. Ward was ask
ed by, counsel: .r-. -rrrs s4r
"Had yog any contracts whatever
from which you could pay large |
profits to your eustemers?' ','' j
HNone whatever uo3sa si au.l 4
"Then all your representations
as to those contracts were false?
'.Fhey were, w. .---.-r.
wow, Mr.. Ward, I want you to
tell who we're interested il these
swindling- operations. 1IG nosirTgg 4
capt +. Spicers Col. Fred; Grant,
Jesse Grant, jr,, James ID Fish, l.. /
Tobin, III. Z. ,Tobin, w. r. Grace, !
J. Nelson Happen, w. w. Smith, o.
:. Grant and and James RsSmith. |
''Can you name any of the diree-
tors of the Marine Bank interested
with your ,.,.,,I
81. Nelson fapPen and Mr.. Spen- b,
Ter, the Treasurer ofthe Erie r. r. I
"a. " I''Whon g you drew lOr lyoJn,
own use did Jeu draw5it by cheeky |;
IF l drew, cash j went TO the 7
cashier of our firm and told him to
1--WE me couple OF hundred dollars, 1
ind for larger amounts i told the II
,ashier to give me a check which i
,Ould deposit. nsa sdT .t3r1qs
"Where did you credit with the
irm proceed from. ,... *
"Itis hard for me to tell. COL y
fred. Grant might give rHe7 q note
m his account for $50, 900" y
."And on that note your firm gave
col. Grant credit for $50, 900? r.
ave did, IAAl 20 t
Sand then Col grant gave you
heck for that amount and you
rev the cash out on that check?,.' e
II did" "
HWas that a portion.of the ina
'iiIary profits of your frm2H szili3
FIT was. SsoL IN ma7i ssffm yn# 2
$50 that the real nature Of your =
nsiness consisted Of imaginary G
rofits TO be derived from fictitious :
apital upon imaginary cSntracts 7
E una ginary values paid by Fred.
rant and his associates" .f =
at did" f,.-g :
AWas that anything short Of =
hlo- -et5I i9'L 10
IsItiysas not. 4Ed baa I'D 81 ilor Q
1sWho were your aeeomphces2a :
II had no confederates- "rs5 ~ ~
'Do you mean &c tell US you bad 4
o accomphcesip thai swindle? y
No answer. eAi'nIu 10
awhere is your banking ae- 2
DnntsP' nsfg9df9W sn1f a. Itb ~
81 do not know" t.. l.-,.-, =
HNhen did ysu begin that im- N
,inarx hnsinees2"" t'H4 -7tNffI In