Savannah morning news. [volume] (Savannah) 1868-1887, 1884-12-28
BUCK TELLS OF HIS RUIN.
THE UTMOST CONFIDENCE RE
(. POSED IN WARD.

How Senator Chaffee was Induced to
bump Large Sum into the Sieve and
Gen. Grant to Become a Borrower of
w. II. Vanderbilt to the Extent of
S15O,OOO.
NEW YORK, Dec. 27.-In the suit brought by
Senator ChafTee against the receiver of the
defunct firm of Grant q Ward to recover
about S500,000 worth of securities found
among the assets of the firm, but claimed by
Senator Chaffee, Ulysses S. Grant, Jr., COM
monty known as "Buck," was the first wit
ness, and testified that he was a partner in
the firm of Grant & Ward and son-in- law
of Mr.. Chaffee. Mr. Chaffee gave the witness
some bonds, on which he borrowed $4,000 and
went to Europe. He intended to repay his
father n-laW. but instead, on his
return, borrowed an additional 100000.
This money went into the firm as his
individual interest. The witness had charge of
all Ghaffee's securities, and owed him $500
Mr.. Ward suggested that it would be better
to use the money of friends rather than to go
outside, and the witness, after writing NJ
Chaffee (Who was East and. telling him v, nat
a good thing it was, obtained his cor sent to
the transfer of the securities. str. Ward
guaranteed the loan. The money was sup
posed 10 be used in bT.vvlng government con-
tracts, and m@aIng loans to railroads, with
" per cent. profit. Mr.. Ward frequently
showed advertisements Of government con-
tracts, and said that he would try and get
them. The profits were to be divided among
the members of the firm evenly, but some
times when they were smaller than usual, Mr..
Ward would take his share and di-
vide the, balance. On the profits made made
Mr.. Chaffee was to have so per cent. profit,
out of which he allowed something to the
witness. Mr.. Ward knew that the loans were
from Mr.. Chafee, because the witness tod
him so. Mr.. Ward displayed great knowledge
of what went on in the office, and if the wit
ness had $1,000 or $4,000 in the bank on his
own account Mr.. Ward generally borrowed it..
BIG PROFITS ON PAPER.
When the contracts of the firm with the
contingent profits amounted ION paper to
81 OOO, ,6GO or S3,OOO,0O0 the witness asked Mr..
Ward if others could be let in, but Mr.. Ward
replied that he wanted to build up banking
house, and the contracts were outside matters
for which he was responsible. He said that
he had got the contracts away from David
Dows, and somebody might in turn get them
away from hlm, so they had better De cautious.
The witness said that he had advanced IN
clear money for the business various sums.
He had 81 00O, 900 or s.. 3.0O0, 600 before he went
into the business with MIR. Ward. On Sunday
May 4, he first learned Of the trouble, when
Mr.. w ard came to his house and said that he
vas afraid that it was all up with them. The
witness asked him what he meant and Mr..
Ward explained that the Marine Bank had
there was $75O,000 to the credit of the firm
there. The failure of the bank would make
it difficult to obtain loans ON the street. Mr.
Ward said if the money could be raised 1t
would be all right The witness said that he
cOnld not realize any money, but his father
might.
VANDERBILT'S LOAN.
The witness and his father then went to Mr..
Vanderbilt and got a check for $l50,G00. Gen.
Grant told Mr.. Vanderbilt that he thought
that the check of Grant & Ward was as good
as the check of Vanderbilt. The check was
drawn to the order of Gen. Grant. The next
day the witness took the check for $l50,000 to
Mr.. Vanderbilt and he regretted that he not
had it certified as it was drawn on the Marine
Bank. That day the witness received a letter
addressed Dear Buck" and went to sec Mr..
Elkins, who went with him TO Mr.. Wards
house in Brooklyn, where they waited till
midnight before Mr.. Ward came in. Mr.
Ward said that the balance in the Marine
Bank was about $200,000 or $500, 900, and that
if Mr.. Spencer (the Cashier) had said it was
$t63000 he had made a mistake. MIR. Elkins
thought that the interests of Mr.. Chat
fee should be protected. Mr.. W ard thought
that there were other interests to be pro-
tected. Up to that time the witness had no
idea that money was due any others than his
own family and Mr.. Chaffee. Mr.. Ward
agreed to meet them with the keys of the safe
the next day, but did not, when the witness
went to the Safe Deposit Company and in
formed the officers that he was partner in
the firm of Grant & Ward and had their safe
opened, after which the securities were
counted by Messrs. Laracque and Elkins.
Further hearing was adjourned to Jan. 3,
ISS5