Savannah morning news. [volume] (Savannah) 1868-1887, 1884-05-09
FAILURE OF THE BANKS.
FORMAL ASSIGNMENTS MADE
BY BOTH INSTITUTIONS.

/ rOhMAL ASSIGNMENIS MADE
BY BOTH INSTITUTIONS.
Hundreds of Thousands of Dollars I'm
Preferences - President Fish Gives
Over His PrOperty-The New York,
Chicago and st. Louis Railroad Com
pany Seeks to Guard Collateral Bonds.
NEW YORK, May S.-Assignments were
| filed to-day, for the benefit of the credi-
tors, in the County Clerks office, in con-
nectiOn with the suspensions of the Ma
rine Bank and Grant & Ward, as
follows: James D. Fish filed an assign
ment to John H. Morris. 1t directs the
payment in full of any obligation he is
under to any trust fund or estate for
which he is liable individually, or as
trustee, the payment of any obligation he
is under to the Marine Bank, the pay
ment of any liability he is under as
indorser or guarantor on any
notes or obligations of the firm
of Grant & Ward, which were dis
counted for at his request, and upon
which he received proceeds; also all in
debtedness incurred, for which he is liable
jointly with any other person, equally and
propOrtiOnately, as far as the same will 60
The assignment of Frederick d. Grant
to James McNamee shows the following
preferences: Henry Shoemaker, of New
York, $125, 900; U. S. Grant. of Elizabeth,
n. j., $4,000; Thomas b. Midway. late of
Galena, ILL.,, $15,666 81; Cornelius II. Gar
risOn, of New York, $4,000; Mary J. Cra-
ner, of Jersy City, 81, 800; Mrs. Benjamin
L. Honore, of Chicago, $4,000; Virginia
G. Corbin, Of Jersey City, $22,5O Mrs.
Frederick d. Grant, of MOrristOWn, n.
j., $4,000.
The assignment of Jesse r. Grant, also
to James McNamee, gives preferences as
follows: Henry f. Shoemaker. of New
York, $4,000; Mrs. n. A. Hopper, of
Hackensack, n. j., $4,000; John E. Ma
son, ofSan Francisco, 5000; Thomas H
Bailey, of New York, $4,000.
The assignment of Grant & Ward and
U. s. Grant, Ferdinand Ward, U. S.
Grant, Jr., and James d. Fish, copart-
ners under the firm name of Grant &
Ward, to Julian L. Davies, was also filed.
The names of the preferred creditors are
as follows: Edward g. James, James
Henry Work, William S. Warner, Jerome
b. Chaffee. Frank F. Wood, Edward L.
Short, E. NJ. Wilmerding, Charles P. Brit
ton, Ezra A. futile, James G. Gardiner
and Frederick d. Grant. No amounts
are stated. Judge DOnohue has granted
an injunction restraining all persons from
interfering with the assets of Grant &
Ward pending the hearing of a motion for
a receiver of the property made by the
Nickel Plate Company, which is seeking
to redeem l, 400 bonds pledged by it to the
firm and rehypothecated by the firm.
VANDERBILT AFTER A RECEIVER.
In the suit brought by the New York.
Chicago and st. Louis Railway Company
against u. 5. Grant, Jr., Ferdinand Ward,
U. 5. Grant, James d. Fish, VIM. c.
Smith, Julian T. Davies. and John H,
Morris, in the Supreme Court, Judge
DOnOhue this afternoon granted an order
requiring the defendants to show cause
on the 18th instant why receiver should
not be appointed, and also why an in
junction should not be issued. and in the
meantime, and until further order Of
the court, the defendants and their agents
are restrained from interfering with the
partnership assets of the firm of Grant &
Ward, from selling the same or aDpro-
priating the same to the payment of any
debts of the firm without leave of the
court. The order and injunction were
affidavit of VIM. X. Vanderbilt,
President of the New YO:k,
Chicago and st. Louis Railway Company.
In his affidavit Mr.. Vanderbilt saws that
about April u, 1884, the railroad company
made its promissory note, bearing date on
that day, whereby for value received it
promised to pay to Grant & Ward $5,OOO,-
900. The note will become due on Janu-
airy l, 1885. On April 20 the railroad
company made another prOmissory note,
payable to the same firm, for 5000, ,OOO
which note also becomes payable January
1. 1885. AS collateral security for the
payment of these notes the plaintiff
deposited with Grant & Ward ], 400 nego-
table bonds of the railroad company for
81, 900 each, payment of which was secured
by second mortgage upon its railroad.
Mr.. Vanderbilt alleges on information and
belief that Grant 81 Ward upon receipt
of these notes and securities united these
bonds indiscriminately with securities
belonging to other parties for the purpose
of borrowing money, and the plaintiffs
property has become distributed among a
great number of persons and corporations
who have or claim some lien thereon as
lenders of money on security to Grant &
Ward.
GUARDING THE BONDS.
BY this mlngling up the securities have
become liable to be sold for debts for
which they were not originally pledged to
the firm, and their identity is likely to be
lost and reach point to which they can
not be traced; and there is great danger
OF the plaintiffs property being appropri-
ated to the payment of debts not consti-
tuting a lien thereon, and of debts due by
other persons being discharged by resort
to the securities belonging to the plain
tiff. He alleges that the firm is insolvent
and has suspended payment, and that the
members are threatening and intending to
place all their property beyond the reach
of the plaintiff. The defendants in the
suit, Julian T. Davies and John II. Nor
ris, are the assignees. The plaintiffs COM
pany desires to redeem its property from
all lawful liens AID claims out on account
OF this distribution, but without the inter-
ventiOn of the court it is impossible TO
rescue it from imminent danger of waste
and disappearance. Pending the suit
the plaintiff asks for the appointment of
a receiver for the firm of Grant & Ward
to take charge of its property.
The Marine Bank Directors. who have
been in session this afternoon, have ad-
jOurned. No statement was made TODAY,
Director Sierck SAYS: ''No receiver will I.
be appointed and the chances for resump-
ton are good. President Fish has not
been asked to resign, but in case of a
reorganization there will be new Presi-
dent and Cashier. The checks deposited
Tuesday will be paid unless there is off
setting Indebtedness"
UGLY FACTS.
The following will appear in the Tribune
tomorrow morning: "Ihe facts which
are gradually leaking out regarding the
operations and business methods of the
suspended firm of Grant & Ward, whose
collapse was cOincIdent with that of the
Marine National Bank on Tuesday, eX-
hibit the condition of the house in even
worse light than has been generally imag-
ined. Not only are they known to have re-
hypothecated securities lodged with them
on loans by several railroad companies,
but they have obtained larger advances
on some of these cOllaterals than the
amount they had advanced. The best in
formation now puts their gross liabilities
at not far from $40, 100000. No estimates
can be made of their assets, exclusive of
the loans made on the securities they
have repledged. No statement is yet OBJ
tainable respecting the condition of the